Artemis ILS NYC 2020

Menu

Reinsurance News

Troubled London marine energy market remains in flux: Lloyd & Partners

15th October 2018 - Author: Matt Sheehan

The marine energy re/insurance market in London, and Lloyd’s in particular, remains in a ‘state of flux’ at 3Q 2018 as the class struggles to break even, according to a report from Lloyd & Partners.

marine-energyThe report noted that the recent ‘Performance Management Directorate’ at Lloyd’s has forced re/insurers to contend with the fact that Marine in insurance as a whole, and Hull in particular, continues to predominantly perform as a loss-making class.

In response to mounting regulatory pressure from Lloyd’s, there has been widespread talk of syndicates, as well as plans to reduce marine capacity, rationalise marine product lines, withdraw from certain marine classes and geographic exposures, and let go of individual insurers and staff.

Lloyd & Partners observed that this climate has produced erratic and inconsistent underwriting decisions, with a tendency for the newer capacity and inexperienced underwriters to overreact.

Nevertheless, there is a general realisation that an overall upswing in rates and a tightening of underwriting discipline will be required.

The report noted that London’s results in the marine class will be mirrored in the competing overseas wholesale markets, but suggested they will remain more consistent and stable for the meantime as they cannot correlate and combine results to the extent that the Lloyd’s market can.

Significant overseas markets in America, Scandinavia and the Far East are therefore likely to continue increasing their share of both local business and larger wholesale offerings, Lloyd & Partners said, adding that it cautioned against making any long-term radical decisions in this marketplace.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
IFTRIP addresses emerging terror risks at 2nd annual conference

The International Forum of Terrorism Risk Re/Insurance Pools (IFTRIP) has convened at a 2nd annual conference in Moscow to address...

Close