Marine underwriters, excluding the yacht market, were largely spared a heavy Hurricane Harvey and Irma impact, but their reliance on the same pool of investment and reinsurance will likely have put a brake on the rate reductions experienced in the last years, according to JLT’s recent energy market report.
“Although there are now fewer opportunities for reductions, Marine Liability should be largely immune from any knee jerk reactions to push for immediate unwarranted rating increases.
“With worldwide Hull results for most marine underwriters averaging, at best, ‘break-even’, underwriters are looking for any catalyst to justify putting the brakes on what has been the softest marine market in decades,” said JLT.
Offshore and energy related fleets remain the most sought after risks in the marine market, regardless of overall market outcomes.
However, buyers are advised to realistically lower their expectations from those at last year’s renewal in terms of available reductions or improvements.
Insureds who have locked in for a multi-year periods will likely avoid renewing contracts in what are likely to be testing and uncertain times.
JLT said Marine Liability market remains far more stable when compared to the Hull market, with a more consistent approach from underwriters.
Hull risk is marked by inconsistency and uncertainty with underwriters showing vastly different approaches to different types of the risk, however, Marine Liability should be largely immune from any knee jerk reactions to push for immediate unwarranted rating increases, said JLT, although there are now few opportunities for reductions.
