Industry News & Tips

Latest Updates on Marine Insurance Rates

March 31, 2010

Gene Horton

Whenever possible I like to give our friends and customers updates on what is happening in the insurance industry as far as changes, available and cost are concerned. This article is from one of our very knowledgeable underwriters that specialize in marine insurance. LIG Marine regularly send us updates and I am happy to pass on anything that will help our customers and friends better understand the driving forces in insurance costs and therefore be better prepared deal with these critical coverage's. I hope you find this article interesting and useful.

Thanks for your support,

Gene Horton

 

                                                     Marine Rates Down, Down and Up?

The year end 2009 results from LlG Marine Managers WaveLine Survey are showing a further drop of 1.8% for 2009, with some moderate hardening predicted for 2010:

GEOGRAPHIC
Most notable, but least surprising is the geographical split of results which range from an average rate decrease in the Mid-Atlantic of 3% to a small rise in the West Coast of 0.3%.

 

 

RATE CHANGES BY ACCOUNT SIZE
No surprises here, the biggest accounts achieved an average of 12.5% rate decrease

 

RATE CHANGES BY LINE OF BUSINESS

2009 shows the continued free fall of cargo rates, down another 5.6%, when will it end? Charter/Sightseeing has seen a modest increase but all other lines dropped for the year.

 

2010 EXPECTED RATE CHANGES BY CLASS
With the exception of cargo and marinas, most marine professionals are expecting modest raises in most lines during 2010. Bluewater P&l leading with 2.5%.

 

POLICY DELIVERY IN 2009
We again surveyed policy delivery and the result nationally shows that the average marine policy was delivered to the agent/broker 63 days AFTER binding. A marked decline of 8 days over the last 2 years.

 

WAVELINE
is the on-line marine and Longshore insurance market survey sponsored by LlG Marine Managers and compiles responses from the top marine and Longshore agents, brokers and insurance companies in both the USA and London.