Protection and Indemnity (P&I) insurance claims have reached their highest level in ten years, according to a new report from Lockton, the world’s largest independent insurance broker.
The International Group of P&I Clubs reported a collective underwriting loss of $312 million in the 2024/25 policy year, erasing two years of surpluses and leaving a net loss of $98 million over the past three years. Net claims climbed 25% to $3.1 billion, exceeding the five-year average by 16%.
Lockton highlighted fires and electric vehicles as emerging risks, alongside misdeclared cargo, aging fleets, and inflation-driven repair costs. War-related disruptions in the Red Sea, rerouting via the Horn of Africa, and sanctions further inflated claims. Longer voyages have also raised exposure to weather, mechanical failures, and delays.
On crew welfare, the report noted that suicide remains the leading cause of death at sea. Pool claims made 2024/25 one of the worst years on record, with the final cost potentially exceeding $775 million once back-year deterioration is factored in.
Despite a general premium rise of 5.2%, total income stayed flat at $3.96 billion, held back by churn—where older, higher-rated ships are replaced by newer, lower-rated tonnage—and members opting for higher deductibles. Lockton estimates churn has cut rates by 7.4% annually over the past decade.
Investment income of $711 million provided some relief, and free reserves across the clubs rose nearly 5% to $5.96 billion, though still below pre-2020 levels.
Looking forward, Lockton expects general increases of 5–10% for the 2026 renewal. While early 2025 claims appear lighter than 2024, inflation and operating cost pressures mean shipowners and clubs face continued financial strain.
