Broker Gallagher has suggested that protection and indemnity insurers could use their plentiful financial reserves to cushion the blow of an increase in reinsurance costs expected next year.
The International Group of P&I Clubs is currently negotiating its reinsurance contract for pooled claims costs in excess of $100m.
A spate of costly claims means that there is likely to be a sharp rise in reinsurance costs that Gallagher says the market is estimating in the region of 30%.
