How Shipping Insurance Really Works During a War

The Odd Lots podcast explores the intricacies of maritime insurance, particularly Protection and Indemnity (P&I) clubs, and their role in global shipping. Dorothea Ioannou, CEO, and Steve Ogullukian, Reinsurance Director, of the American P&I Club, explain how these mutual associations provide liability coverage to ship owners, acting as a safety net for damages caused to third parties. They detail the history of P&I clubs, born from the need to insure risks commercial insurers wouldn't touch, and how they function as non-profits pooling risks among ship owners. The conversation further explores the impact of war on maritime insurance, highlighting the complexities of war risk exclusions and the necessity for separate war risk coverage, and touches on the influence of geopolitical factors on insurance rates, especially in areas like the Strait of Hormuz.