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P&I reinsurance rates seen rising into 2027/28 renewals
Gallagher Specialty expects general increases of 2.5% to 5%, with extra focus on the fully cellular container segment after the MV Dali incident.
Reinsurance rates for Protection and Indemnity (P&I) Clubs are expected to rise further ahead of the 2027/28 renewals, with Gallagher Specialty pointing to growing attention on the fully cellular container (FCC) segment, according to its P&I Market, Midyear Review.
At the prior renewal, the International Group (IG) increased programme limits by USD250 million, and with USD1 billion collective overspill protection, Gallagher Specialty says coverage could protect a claim of up to USD3.35 billion.
The review also links tightening pricing dynamics to the March 26, 2024 collapse of the Baltimore Bridge after the container ship MV Dali suffered a power outage, a loss Gallagher describes as the costliest marine liability claim in history.
Gallagher projects a general increase in the range of 2.5% to 5% and says there is growing pressure for Clubs to deliver commercial-level capital returns. It also cites IG club results for the 2025-26 cycle, with a market-wide loss of USD250 million, average combined ratios between 105 and 108%, and strong investment yield of about USD1,125 million, lifting free reserves to around USD6.8 billion.