The 13 members of the International Group of P&I Clubs (IG) will most likely be reduced to 12 within the next year, when two of its oldest members complete a merger.

UK-based North P&I and Standard Club aim to merge per February 2023, according to a press release.

”Standard Club and North now have the opportunity to create one of the world’s leading and most influential P&I clubs,” says the CEO of Standard Club, Jeremy Grose, in the announcement.

Grose adds that the merged club would be a ”powerful voice for shipowners and their best interests,” and that its ”market-leading knowledge and deep technical insight would focus on supporting the changing needs of shipowners.”

The two companies will merge in order to flourish in a changing market, which poses big challenges in the areas of digitalisation, sustainability and regulation.

A P&I club is a form of insurance based on mutual risk.

It is organized as an association (club), whose members have the right to insurance coverage but also commit to payment of million-dollar premiums. A P&I club primarily provides cover for cargo damages, pollution and personal injuries.

The first P&I clubs were founded in the UK in the 19th century – North P&I in 1860 and Standard Club in 1884.

13 of the biggest clubs are gathered in IG, which insures up to 90 percent of global ship tonnage. Together, North P&I and Standard Club have a market share of 22 percent.

The members of the two clubs will have to approve the merger plans later this year, and if that happens, the formal process will be completed in less than a year.

English edit: Kristoffer Grønbæk

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