The marine insurance market continues to struggle in the face of low premiums, losses and stunted cargo growth, the International Union of Marine Insurance (IUMI) annual conference has been told.

While the size and scale of vessels has risen, leading to increased exposures, premium increases have not kept pace.

Hull insurance has recorded an underwriting loss for the past 16 years, with brokers urged to prepare clients for a hardening of rates and tightening of terms and conditions.

But Ocean Hull Committee Chairman Harry Yerkes says the market seems to have “shrugged off” the Costa Concordia loss from earlier this year.

“There is still capacity and a lack of discipline in the market and we are becoming a little concerned,” he said.

“Unless there is a correction in the future, at present we are at the bottom of the pricing barrel and someone will get out a spade and start digging.”

IUMI Facts and Figures Committee Chairman Patricia Kern describes the outlook as “unstable” and forecasts “weak to negative” growth for marine insurers.

She says the global economic downturn’s stunting of cargo volume growth is not helping the market. “The correlation between less cargo volume and less premium is immediate.”

There is better news on piracy, with the conference hearing the number of attacks has fallen from 159 last year to just 28 so far this year.

This is attributed to better management practices, more armed guards on vessels and increased action by naval authorities against pirate “mother ships”.