Joe Hughes will tell delegates at the Houston Marine Insurance Seminar 2010, that while the challenges are significant the P&I market has and will continue to prove its worth to its members and shipowners.

Mr Hughes will address the Tuesday session of the Seminar in the theme “the P&I World – In transition” and says the market will not only survive but will prove its worth as a vital part of the marine insurance sector.

“There is little doubt the past three decades have seen significant change in the world,” he explains. We have seen 30 years of Geopolitical change, 30 years of economic change and 30 years of P&I change with an evolving business model.”

The fragile economy,  the advance of emerging markets  in particular China, and the spotty freight market are playing a part in the current challenges and in future there remains a fear of greater regulatory and political change on a regional basis and the potential impact of the global economy goes into a double dip recession.

Mr Hughes said he fully expected that the expectations of the P&I Club members will increase as regulation and liabilities rise but adds that the club and the International Group has the ability to continue to provide cover adding he feels the levels of cooperative funding between the group members will increase.

“I firmly believe that the flexibility within the current system will be increasingly recognised in the future marketplace. There will still be a place for the specialist single premium insurers but the P&I clubs will show their worth and as we have seen in recent time the results have improved.

“What we are already seeing is a move to a better balance underwriting equitation and that will continue into the future.”