Marsh Insights: Marine Market Monitor, July 2012
Published on: 16-Jul- 2012 | Comments: 0
Marine insurance market conditions remain generally favorable to buyers despite a succession of natural catastrophes and other significant losses since the beginning of 2011, according to Marsh's Marine Market Monitor.
The Japan earthquake and tsunami, flooding in Thailand, the Costa Concordia loss, and Rena oil spill have resulted in significant cargo, hull, and liability claims. But despite poor claims experiences from these and other disasters, underwriting capacity for marine risks remains high and insurers have not sought significant premium increases.
The report also found:
- Faced with greater competition, underwriters have sought out new areas in which to use their excess capacity. For example, many cargo insurers are now seeking to underwrite stock throughput policies, which provide coverage for stock while it is in distribution or at manufacturing locations, such as warehouses and factories.
- Piracy remains a significant threat to the marine industry. The vast majority of marine vessels are now armed, a significant shift from a year earlier, amid signs of greater collaboration among pirates and possible escalation of pirate activity in the Gulf of Guinea.
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