Australian marine protection and indemnity renewal premiums will rise moderately as the International Group of P&I Clubs – ­the prominent group of non-profit mutual underwriters – tries to break even.

Aon says in its latest Marine Insurance Review: Australian Perspective that the challenging trading environment experienced by the global marine sector since 2008 “is being further exacerbated by the continued decline in demand for natural resources”.

“To achieve break-even underwriting results, clubs will need to increase premiums during the annual February renewals.”

Investment income has traditionally been a way for clubs to subsidise weak underwriting results, but poor returns in recent years put them under pressure to raise rates.

There are 13 clubs in the group, providing liability cover for about 90% of the world’s ocean-going tonnage.

Each club is run as an independent, non-profit mutual association and provides cover for its shipowner and charterer members against third-party liabilities related to the use and operation of ships.

Challenges to the group’s grip on the market will likely persist as some shipowners seek more flexibility, Aon says.