MANAGE & LEAD
“ Typical increases on loss-free property exposures are in the high single digits . Marine liability , particularly low-level excess and bumbershoots , a marine insurance-specific excess policy , are attracting 15 % or more in price ,” says Robert Gallagher , president of Ocean Marine , Intact Insurance Specialty Solutions .
Terms and conditions are tightening too , but is there a beacon of light in the commercial marine market ?
“ The commercial marine markets encompass a number of different products , and each of them is being differently impacted by the pandemic and also differently impacted by market trends ,” says Mark Engel , managing director , marine , RB Jones . “ On the hull side , we see increased rates , more restrictive terms and conditions , and tougher risk selection from underwriters .”
Before the pandemic , commercial marine insurance was somewhat reset with increasing rates and a healthy global economy . The market was looking like it was heading toward a period of significant growth .
Now , however , “ the pandemic has resulted in decreased exposures in areas such as sales , the number of jobs performed and shipped values . Business closures are up ,” says Anne Marie Elder , global chief underwriting officer , marine , AXA XL . While “ new business submissions for some marine products had decreased , we ’ re seeing them rebound as agents begin to market their portfolios actively ,” Elder says .
The use of multiple distribution channels will significantly influence the marine insurance market growth in the next few years . “ Distribution chains have totally been turned upside down , and more manufacturing is coming stateside to shorten the supply chains and not having such dependence on one country in particular ,” Gambino says .
“ That alone is changing cargo business ,” he adds . “ In one respect , maybe we don ’ t have as many imports , but on the other hand , we might have more clients exporting in the future . So the future looks rosy for U . S . -based cargo underwriters .”
Factors such as rising population numbers and improved purchasing power mean the demand for consumer products , goods , and raw materials is predicted to grow . However , with the global economic health in the wake of COVID-19 , ongoing trade disputes , and climate change , the maritime industry could be in for some rough waters . Nevertheless , several market research firms ’ reports , including one produced by Technavio , have pegged projected growth between now and 2024 at more than $ 8 billion .
“ With the uncertainty that exists in the coming years , I would expect to see comparably less growth in the space than in the prior number of years ,” Feldman says . “ However , I don ’ t think that there is a question that overall population growth and increased global supply chains will mean continued growth in the marine space for years to come .”
Why Choose IDEAL A & M ?
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A program management entity that underwrites a wide variety of specialty coverages on marine forms . We have a broad appetite for ocean marine and inland marine exposures , with a particular emphasis on Agriculture , Agribusiness and Animal Mortality exposures . Our programs are available to producers throughout the United States . We can consider risks throughout the world , and most coverages are admitted for U . S . and Canadian exposures .
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