International Group of P&I Clubs
The International Group of Protection and Indemnity Clubs, a London-based association of 12 mutual insurers covering approximately 90% of the world's ocean-going tonnage for third-party liabilities and war risks.
The International Group's 12 clubs withdrew Persian Gulf and Strait of Hormuz war-risk cover in March 2026, and their continued non-reinstatement, not any sanctions waiver, remained the binding constraint on Iranian oil reaching Japanese refiners as of early July.
Last refreshed: 19 July 2026 · Appears in 1 active topic
Why do P&I clubs hold more power over global shipping than governments?
Timeline for International Group of P&I Clubs
Mentioned in: Brent clears $87 as Hormuz traffic thins
Iran Conflict 2026Mentioned in: IRGC strikes GFS Galaxy, shuts Hormuz
Iran Conflict 2026Kept its Hormuz war-risk exclusion in force through the recovery
Iran Conflict 2026: Insurers hold the line on Hormuz riskMentioned in: Japan reopens Iran oil talks after 2019
Iran Conflict 2026Mentioned in: Oman's waters become the only lane
Iran Conflict 2026Background
The International Group of P&I Clubs is an association of 12 Protection and Indemnity mutual insurance clubs, including Gard, NorthStandard, West of England, UK Club, Skuld and the London P&I Club, that collectively cover approximately 90% of the world's ocean-going tonnage. P&I insurance is the primary form of third-party liability cover for shipowners, protecting against claims for cargo loss, personal injury, pollution, wreck removal and war risk; unlike hull insurance, P&I cover is mutual, with members paying calls rather than premiums and catastrophic losses shared via the Group's pooling and reinsurance arrangements. Without P&I cover, ships cannot enter most ports, cannot access financing and cannot be commercially operated by any recognised shipping line.
The secretariat is based in London, where Lloyd's of London works alongside the Group on war-risk matters through the Joint War Committee. P&I clubs have periodically issued cancellation notices for conflict zones before, including the Falklands in 1982, the 1980s Tanker War and the 1991 Gulf War, but the speed and totality of the 2026 Hormuz withdrawal was the most complete in the Group's modern history.
Missing cover blocks Iranian oil sales
In June 2026, even after a US-brokered Ceasefire announcement, the Group's continued non-reinstatement of Hormuz cover meant no commercial tanker resumed transit; the absence of cover was itself the binding constraint on reopening the strait.
That constraint persisted into July: when Iran opened crude sales talks with three Japanese refiners under a US sanctions waiver running to 21 August, missing war-risk cover, not the waiver itself, stood between the talks and any cargo actually moving. Reinstatement requires a full syndicated risk reassessment that typically takes weeks to months after a conflict zone is formally cleared by the Joint War Committee, a process the Group had not begun.
Reference
How does P&I insurance affect oil tanker movements?
What is the difference between P&I insurance and hull insurance for ships?
Can governments force P&I clubs to reinstate insurance cover during a war?
What is the International Group of P&I Clubs?
Why can't Japan buy Iranian oil even with a US sanctions waiver?
Why did P&I clubs cancel insurance for ships going through the Strait of Hormuz?
