Maritime industry faces another difficult year

The Review reveals that the hull market is unpredictable following the cruise ship disaster in January, with some underwriters in the London insurance market, which will bear the majority of the estimated US$500m hull claim, adamantly refusing premium reductions or even flat renewals. However, unaffected underwriters in the Far East and Scandinavia are more open to negotiations.

Marine liability underwriters meanwhile are hoping the disaster will drive through a general hardening of rates, with many seeking 5% increases going forward.

Cargo insurance buyers continue to enjoy the benefits of a soft market, achieving reductions in both premium and deductibles, as well as increases in limits at little or no additional cost. Despite ever-dwindling returns to insurers, competition for business remains fierce with a flurry of new entrants creating excess capacity.