The International Group of Protection and Indemnity Clubs (IGP&I) is an unincorporated association of not-for-profit mutual insurance associations (P&I Clubs), functioning as a critical institution in global maritime insurance. Its history dates back to 1899, when six Clubs, known as the London Group of P&I Clubs, created a claims sharing agreement called the "Pool". This arrangement was established to solve the problem of individual Clubs being unable to offer the substantial level of liability cover required by shipowners, which was achieved by spreading large risks across the group.
The core mechanism is the Pooling Agreement, which sets the terms for arranging at-cost collective insurance and reinsurance. This mechanism allows the member Clubs, which collectively insure approximately 90% of the world's ocean-going tonnage, to share claims that exceed a certain threshold. For instance, the Pool provides a mechanism for sharing claims in excess of US$5 million. The IGP&I also arranges a massive market reinsurance contract for claims exceeding amounts like US$30 million. The P&I Clubs provide cover for shipowners' third-party liabilities, including oil pollution, crew injury, wreck removal costs, and cargo loss or damage.
The Group connects directly to international bodies like the International Maritime Organisation (IMO) and UNCTAD, acting as a representative voice for its shipowner members on liability and insurance issues. The Group, which currently comprises twelve Clubs, constantly renews its Pooling Agreement to adapt to market and legislative changes. A recent change for the 2023/2024 policy year involved introducing annual aggregate limits for excess layers in response to risks like Malicious Cyber and Covid-19, applying to losses greater than US$750 million. Furthermore, the Clubs have recently issued 72-hour cancellation notices for war risk coverage in volatile areas like the Persian Gulf, reflecting the dynamic nature of maritime risk.