Insurance Gainshare/Painshare

Ensuring insurance gainshare savings are shared with the public sector.

What is PFI insurance Gainshare and Painshare?

Gainshare and painshare are terms that refer to the allocation of financial risks and rewards between the private and public sectors in a PFI contract.

Gainshare refers to the sharing of financial gains or savings as a result of reduced premiums, either linked to better risk management or market movement. In a PFI contract, the public sector may be entitled to receive a share of these gains.

Painshare refers to the sharing of financial losses that result from unforeseen events or project failures. In a PFI contract, the private sector partner may be required to share in these losses, which helps to mitigate some of the financial risks for the public sector.

Under a PFI, the private sector is required to take out a suite of insurance policies to provide cover against certain risks such as delays, material damage, and business interruption. The insurance provisions may require that where the cost of such policies is above or below expected levels, then a painshare or gainshare is applicable, allocating this amount between the private and public sectors.

How can we help?

We support our clients by undertaking a full and detailed review of the insurance contract provisions within a PFI contract, and provide our analysis on the accuracy of previous year calculations and submissions by the PFI provider. Where this has not been calculated accurately by the private sector, we will support you to recover any due funds and ensure this is accurately calculated moving forwards.

Our experience

Our team has extensive experience in undertaking insurance gainshare and painshare reviews on PFI contracts, and to date have successfully recovered more than £50m for the public sector in insurance gainshare payments.

For a comprehensive range of insurance gainshare and painshare review services tailored to your needs, please contact us using the form below.

£50m returned to the public sector

P2G offers comprehensive reviews of PFI contract insurance provisions to verify previous calculations and recover funds if inaccuracies are found. Our team, with a strong track record of recovering insurance gainshare payments, provides tailored insurance gainshare and painshare review services to effectively support the public sector.


Gainshare and Painshare provisions in PFI contracts refer to the allocation of risks and benefits from changes in insurance costs. Gainshare occurs when insurance costs decrease, and the savings are shared between the public sector and the private sector. Painshare happens when costs increase, and the additional expenses are similarly divided

The exact calculation may vary by contract, but it generally depends on the change in insurance costs compared to a baseline cost. The share of gain or pain is typically defined in the contract, often on a 50-50 basis, but it can vary.

If costs are miscalculated, parties involved in the contract can work together to correct them. This might involve reimbursing the public sector for any overpayments, or vice versa. An accurate calculation of insurance costs is crucial for a fair distribution of gains or pains.

Yes, there may be contractual limitations on how much can be shared as gain or pain. Additionally, changes in insurance market conditions can also impact the amount of gain or pain to be shared.

Organizations can undertake a detailed review of the insurance contract provisions within their PFI contract, possibly with the help of external experts like P2G. This can ensure the calculations and submissions by the PFI provider are accurate, and any due funds are recovered.

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