A fresh analysis from Gallagher points to upcoming increases in reinsurance rates within the marine Protection and Indemnity (P&I) sector.
The report suggests that these hikes are on the horizon over the next couple of years, influenced by varying market conditions.
Factors Influencing Rate Increases
One significant factor driving this trend is the anticipated return of volatility in 2025, largely linked to an increase in the scrapping of older ships.
As these vessels are decommissioned, the dynamics of the market are expected to shift, further impacting reinsurance costs.
Outlook for P&I Clubs
In essence, Gallagher’s findings indicate that as we approach 2026, P&I Clubs might face escalating reinsurance rates.
The forthcoming years are likely to witness market fluctuations, primarily fueled by the accelerated removal of aging fleets.
Source: Insuranceinsider
