A near 10% reduction in cost is making fixed-premium protection-and-indemnity (PP&I) insurance a tempting alternative to club cover for more shipowners, according to the Arthur J Gallagher broking group.
Gallagher predicts the downward price trend will continue but warns the highly competitive market could lead to a “survival-of-the-fittest” battle for business.
The broker expects the fixed-premium market to continue to grow in attractiveness for owners of smaller vessels but, with more than 25 commercial market players and all but two of the 13 mainstream P&I clubs or their managers involved, the sector is already facing oversupply.
Gallagher’s
