Marine insurance rates are expected to continue softening in 2011, according to research by Marsh.
The broker’s latest Marine Market Monitor has found that “abundant capacity, light claims experience and the slowdown in world trade” led to marine insurance rates falling in 2010.
Marcus Baker, chairman of Marsh’s marine practice, said: “Falling demand meant fewer ships carrying less cargo at slower speeds. This directly led to a reduction in the number and size of claims.
"In addition, plentiful insurance capacity has encouraged insurers to sacrifice underwriting profit for market share. “For marine companies wanting to take advantage of these market conditions, standing out from the pack in terms of best practice risk management is critical to securing the best terms. In most parts of the marine market, underwriters are willing to take a long-term view if they believe their relationship with the client is sufficiently strong. They are also willing to compete aggressively for attractive new business.”
Marsh’s research shows that, in addition to good risk management practices, underwriters look most favourably on marine companies that can provide relevant and easily understood data. "Companies building strong relationships with insurers are typically more able to obtain wider coverage conditions at a lower cost and with the greatest choice of quality insurer security," it stated. Source: Post
The broker’s latest Marine Market Monitor has found that “abundant capacity, light claims experience and the slowdown in world trade” led to marine insurance rates falling in 2010.
Marcus Baker, chairman of Marsh’s marine practice, said: “Falling demand meant fewer ships carrying less cargo at slower speeds. This directly led to a reduction in the number and size of claims.
"In addition, plentiful insurance capacity has encouraged insurers to sacrifice underwriting profit for market share. “For marine companies wanting to take advantage of these market conditions, standing out from the pack in terms of best practice risk management is critical to securing the best terms. In most parts of the marine market, underwriters are willing to take a long-term view if they believe their relationship with the client is sufficiently strong. They are also willing to compete aggressively for attractive new business.”
Marsh’s research shows that, in addition to good risk management practices, underwriters look most favourably on marine companies that can provide relevant and easily understood data. "Companies building strong relationships with insurers are typically more able to obtain wider coverage conditions at a lower cost and with the greatest choice of quality insurer security," it stated. Source: Post