Despite ongoing technical performance challenges, Protection and Indemnity (P&I) clubs have maintained record-high free reserves, according to a recent report by AM Best. These reserves provide a financial cushion, ensuring that P&I clubs can meet their obligations to policyholders even in the face of adverse claims experiences. However, the report also highlights that social inflation and the increasing size of vessels are making multi-billion-dollar losses more likely, posing significant challenges to the marine liability market.