What’s the biggest threat to marine insurance?

What’s the biggest threat to marine insurance? | Insurance Business

What’s the biggest threat to marine insurance?

Anne Marie Elder
“We’re our own worst enemy. For many carriers, the desire to grab business at any price has set underwriting discipline and business acumen adrift. Today’s marine market is filled with too much capacity, unsustainable rates, aggressive terms and conditions, and a push for more broker compensation.

It’s taken a hit on the marine market’s overall profitability. It has prompted Lloyd’s to deliver a stark message, warning marine syndicates to correct their unprofitable ways or they won’t be a syndicate for long. Unprofitable businesses do not stay afloat. Our clients need us to be there for the long haul.”

 

 

Anita Farmer
“The biggest threat is emerging risk. The increasing size and cost of vessels, infrastructure challenges across the entire transportation industry, cyber threats, and climate change are constantly evolving risks.

While experienced marine insurance professionals can navigate this changing environment, the next generation of marine insurance executives don’t have the experience or training to create solutions and mitigate these risks. It’s incumbent upon those of us with years of experience to ensure that we provide mentoring, training and guided experience for these individuals so they can assist their marine clients in preparing for the risks of the future.”

 

 

Mark Bernas
“Profitability. Due to ever-increasing risk factors, profitability of a portfolio of marine business is on a razor’s edge. Over the past several years, increased capacity, often coupled with inadequate terms, conditions and pricing, has the market teetering on continued unsustainable margins.

With record unprofitable results for 2018, following similar negative results in prior years, many carriers are asking, ‘What is the end game; how do we right the ship?’ In 2018, we have already witnessed several markets withdraw completely from writing marine coverages. We expect the pullback will continue. This seems to be the start of a long-overdue market correction.”