All these clubs of the International Group are grouped by the Secretariat of the International Group based in London. In addition to the Organization, the Executive Director(s) of the International Group and the Secretary of the International Group shall be appointed to their functions, while the Chairman of the International Group shall be elected to its Commission for a term of three years. They are supposed to ensure communication and manage the clubs of the group. In support of the Annual Meetings, members of the International Group of P&I Clubs voted in favour of the International Group body, which consists of five representatives whose task is to oversee the work of the Secretariat and maintain financial funding for the International Group. With the pulse of time, the group`s subcommittees and working groups provide general information on a variety of current and relevant maritime and business issues in the form of reports to the International Group of P&I Clubs, 45 to 55 of which are currently involved in various topics. The special representatives of each club take responsibility and take support measures in their areas of knowledge. For these reasons, group meetings, whether in a modest and frequent way, such as in a panel, or in much of it as the Annual General Meeting of the International Group of P&I Clubs, illustrate an important point of exchange and discussion for the pooling of claims between clubs, which is governed by the Pooling Agreement which defines the risks that can be pooled and how the losses must be shared between participating clubs. The pool provides a mechanism to split all claims from over $10 million to about $8 billion. 2 Theoretical foundations 2.1 Introduction to the International Group of P&I Clubs 2.1.1 The single mutual insurance system for marine protection and compensation clubs 2.1.2 Historical development of protection and compensation insurance 2.2 Background of the International Group of P&I Clubs 2.2.1 Organization and structure 2.2.2 Functions and objectives 2.2.2.1 The International Group Pooling Agreement 2.2.2.2 The International Group Agreement This work aims to contribute to the current international debate on the above-mentioned issues relating to the International Group of P&I Clubs and its committed framework, the International Group Agreement and the International Pooling Agreement, which are currently under in-depth review by the European Commission. The critical review must ensure a solid basis for the assessment of agreements leading to the adoption of the broadest possible outcome scenario of the EU decision and ultimately aims to conclude these above bases in a future market forecast. The growth of foreign trade and UK acts of Parliament has led to an increased need to develop business expansion and liability adjustments for P&I insurance clubs. The expansion of the retail space and the increase in traffic at sea have also led to an escalation of shipping accidents, bringing P&I associations to the brink of liability despair, especially when it comes to balancing the burden of members with additional calls and walking to the brink of bankruptcy by ensuring broad coverage for low and competitive premiums. The need for additional security has in turn forced them to innovate: “The clubs themselves join forces to insure each other.” (Hill et al., 1996:129).

This answers the question of how a reinsurance system can be implemented while maintaining cost recovery at a competitive level. These voluntary measures to divide the claims describe the historical structure of what was later called the “Pooling Agreement.” In 1899, six P&I clubs took out the first mutual reinsurance bond, the London Group of P&I Clubs, and years later were renamed “The International Group of P&I Clubs”. Situations where the ability of a holding club to protect a case that goes far beyond the franchise will inevitably occur, and the benefit of working together to ensure that the excess balance is carried, still determine the primary purpose of the pooling agreement today. This system was and is based on a high level of trust. Nevertheless, to operate and to “. ensure a minimum level of discipline between the parties … (www.gard.no) [37] An oral agreement was reached stressing that no club can consider price reductions or other financial incentives for the acquisition of new members. Until 1951, reinsurance was acquired collectively through a reinsurance contract, rather than being sought individually in the open reinsurance market. [38] Until then, financial guarantees were provided only between the member clubs of the group. [39],[40] The IGA-85 contained detailed tendering procedures (February 20 and September 30 procedures), which are described in more detail below, provisions on minimum rates for oil tankers, and explicit provisions defining the penalty for a club`s violation of the agreement. The thirteen largest clubs of non-governmental mutual insurance associations, the Protection and Compensation Clubs (P&I Clubs), are members of the International Group of P&I Clubs. They currently provide third-party commitments amounting to more than 90% of the world`s maritime tonnage, about 95% of ocean tankers and about 60% of the number of merchant ships in the world. These clubs are subject to a reciprocal agreement, the International Group Agreement (IGA).

They are bound by their specific claims sharing and joint reinsurance policies to prevent other member clubs from undercutting each other`s rates if a shipowner moves from its insurance club (holding club) to another club (new club) within the group. The European Commission states that some of the regulations of the International Group of P&I Clubs concerning competition between P&I member clubs as well as barriers to entry for non-member clubs into the relevant markets are questionable. [2] The rules of some associations set out the powers of the board with respect to the settlement of claims,[3] while others clarify them in their statutes.[4] .