What does the London P&I Club do and how big is it?: The London P&I Club is a mutual insurer covering third-party shipping liabilities including pollution, collision and crew claims. It is one of 13 clubs in the International Group, which collectively covers about 90% of global ocean-going tonnage.
Why did P&I clubs withdraw cover from Iran in 2026?: Escalating US and UK sanctions designations, combined with the JWC's war-risk zone declaration for the Persian Gulf, made continued Iranian-route cover legally and commercially untenable for UK and US-regulated mutuals.Source: event
How does losing P&I insurance affect a ship's ability to trade?: Without P&I cover, ships cannot enter most ports, cannot obtain pollution liability certificates required by international convention, and their hull insurers may also withdraw cover, effectively stranding the vessel.

Background

The London P&I Club is one of the thirteen members of the International Group of P&I Clubs and one of the oldest mutual insurers in global shipping, tracing its origins to the 19th century. It insures shipowners and operators against third-party liabilities including collision, pollution, and personal injury claims. In March 2026, the London Club joined four other International Group members in cancelling cover for vessels trading in or through Iranian waters, effective 5 March 2026, citing escalating sanctions exposure and JWC war-risk designation of the Persian Gulf.

Headquartered in the City of London, the club operates under UK law and is regulated by the Financial Conduct Authority. Its membership spans tankers, bulk carriers, container ships, and offshore units. The London Club's cancellation decision is legally consequential: vessels that relied on it for Iranian-route cover must now seek replacement in the specialist war-risk market or from state-backed insurers in Iran, China, or Russia — all of which face their own secondary-sanctions constraints.

The timing, simultaneous with four other clubs, signals coordination across the International Group rather than unilateral commercial judgement. Analysts note this is the most sweeping P&I withdrawal from Iranian waters since sanctions were tightened after the 2012 JCPOA period.

Source Material

London P&I Club

How the World Sees Them

Iran

Frames the cancellations as a Western economic blockade coordinated through insurance infrastructure rather than declared sanctions.

UK government

Sanctions alignment means the FCA-regulated club cannot continue Iranian cover without risk of regulatory censure.