Nick Shaw, CEO of the International Group of Protection & Indemnity (P&I) Clubs, has questioned the practicality of India establishing its own P&I Club. In a recent interview with ET Infra, Shaw emphasized that forming a new P&I Club only makes sense if there is ample shipping tonnage to support it, given the substantial capital demands and existing global alternatives.
Shaw explained that P&I Clubs operate as mutual organizations where shipowners pool resources to share maritime risk. A new club would need to convince shipowners that it offers advantages over the well-capitalized International Group (IG) Clubs, which already insure roughly 90% of global ocean-going tonnage.
He noted, “there is no reason to build a new Club unless you have sufficient tonnage.” He highlighted that unless India’s fleet grows significantly, the cost and effort of building capital reserves may outweigh the benefits.
Shaw also referenced the example of China, which created its own P&I Club 41 years ago and currently handles around 100 million tonnes. Despite having its own club, China’s P&I Club still reinsures through IG Clubs and benefits from their global expertise—demonstrating how a domestic club can coexist with international structures.
Given the situation, Shaw suggested that a more feasible short-term alternative would be for existing IG Clubs to establish satellite offices in India, rather than setting up a wholly new mutual club.