Tough times test insurers' bonds with shipowners

Two costly maritime disasters, a surge in insurance premiums and harsh shipping markets will make this year's marine insurance renewal season among the toughest ever, straining ties between shipowners and insurers, shipping experts say.

This could see shipowners ditch their existing protection and indemnity clubs (P&I clubs), which cover third-party liabilities, in favour of cheaper operators. But owners still might have to pay the higher fees due to the clubs' lock-in clauses.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1122222/tough-times-test-insurers-bonds-shipowners