Marine insurance rates continue to soar
Marine insurers are juggling falling revenues, lower premium volumes and decreased investment incomes, so not surprisingly rate increases will continue.
Aon’s 2009 Marine Insurance Outlook shows that since increases in rates of up to 15% occurred at the February renewals, hull and liability underwriters have been determined to keep rates moving up in the range of 2.5% to 7.5%.
But Aon Marine Global CEO Steve Beslity says abundant capacity in most classes of insurance is keeping a lid on rate rises, with the pinch likely to come as shipowners look to reduce operating costs.
“So far, at least, the recession appears to have had much less impact on the marine insurance market than the shipping industry itself,” he said.
“Although the markets may attempt to talk up pricing simply because it seems logical to do so in the present difficult economic circumstances, the evidence suggests there is no reason to over-react at this point.”
Aon’s 2009 Marine Insurance Outlook shows that since increases in rates of up to 15% occurred at the February renewals, hull and liability underwriters have been determined to keep rates moving up in the range of 2.5% to 7.5%.
But Aon Marine Global CEO Steve Beslity says abundant capacity in most classes of insurance is keeping a lid on rate rises, with the pinch likely to come as shipowners look to reduce operating costs.
“So far, at least, the recession appears to have had much less impact on the marine insurance market than the shipping industry itself,” he said.
“Although the markets may attempt to talk up pricing simply because it seems logical to do so in the present difficult economic circumstances, the evidence suggests there is no reason to over-react at this point.”