Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 25th of April 2018
November 30, 2010

Willis: surplus marine insurance capacity “defies logic”

by Gill Montia

Story link: Willis: surplus marine insurance capacity “defies logic”

Willis has suggested that the surplus capacity in the marine insurance market “defies logic”.

According to the broker, insurers are queuing up to enter an already crowded line of business where rates are continuing to fall and there is little profit to be made.

However, in its latest review of the marine market Willis explains that the market is often seen as a “safe bet” for large composite insurers seeking to diversify, as witnessed by the fact that up to 11 new insurers will have entered the Hull & Machinery market by the end of 2010.

Commenting on the overall findings of the report, Willis Global Marine chief executive officer, Alistair Rivers, says: “From a client perspective, the outlook is good: pricing is competitive, capacity for all but the largest risks is freely available and choice is greater than ever before.”

He adds: “In the insurance market where profit margins continue to be squeezed, we foresee increased divergence between those underwriters who are looking to build or expand their accounts and those who may become increasingly defensive or selective.”

Other key findings contained in the report include:

Piracy continues to be a huge concern for shipowners and is spreading from the Gulf of Aden into the Indian Ocean.

The protection & Indemnity industry reported very positive results for the 2009/10 financial year.

Cargo shipments are starting to increase but recovery looks to be tentative.

The increase in sanctions against countries such as Iran has brought new challenges; underwriters and brokers are constantly working to ensure they remain compliant within the various different sanction regimes.

 

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