| Coverage line | Trend | Range |
|---|---|---|
| Hull & machinery |
|
Flat to -5% |
| Marine builders risk |
|
Flat to -5% |
| P&I (U.S.A) |
|
Flat to -5% |
| P&I (International club)* |
|
+2.5% to +5% |
| Marine liability |
|
Flat to -5% |
| Marine excess liability |
|
Flat to +2.5% |
| USL & H |
|
Flat |
All rate projections shown above are subject to good loss record accounts with higher end-of range on accounts with greater risk exposure. Increased rates for accounts with adverse loss experience.
*Though we are seeing rate increases for International Club P&I, profitable clubs are issuing capital returns which are mitigating any increases
| 2023 Q1/2 | 2023 Q3/4 | 2024 Q1/2 | 2024 Q3/4 | 2025 Q1 | 2025 Q2 | |
|---|---|---|---|---|---|---|
| Hull | 6.25% | 3.75% | 1.25% | 1.25% | 0% | -2.5% |
| Mutual P&I | 7.50% | 7% | 5% | +5% | 5% | +3.75% |
| Commercial P&I | 7.50% | 6.50% | 6.25% | 6% | 5% | 0% |
| Primary marine liability | 7.50% | 7.50% | 6% | 5% | 2.5% | 0% |
| Excess marine liability | 12.50% | 10.50% | 10% | 7.5% | 7.5% | 2.5% |
Following a prolonged period of market uncertainty and hardening since 2018, the Marine Hull & Liability horizon has shifted to a favorable environment for insureds due to new market entrants and established carriers pursuing aggressive growth. This results in a steady marketplace with an influx of motivated and stable capacity. This evolving landscape is expected to drive positive rate adequacy for our clients, deliver cost efficiencies, and broaden coverage terms.
The marine insurance market is in a positive landscape for insurance buyers, driven increased capacity from new syndicates, MGAs and U.S. carriers entering the Marine Hull & Liability market such as Falvey, Arch and AXIS Specialty. Competition is intensifying as underwriters pursue aggressive growth, leading to flat to 5% rate reductions on average and more flexible underwriting.
Enhanced terms like profit-sharing and continuity credits and other insured favored wordings are reflected in a more collaborative approach between insureds and insurers. Although P&I Clubs are requiring low digit general increases, stronger financial Clubs are giving back capital returns which are mitigating increases.
Market stability remains vulnerable to reinsurance renewals and high-impact events like vessel attacks, natural catastrophes, vessel fires and global political environment instability. Marine underwriters also face internal pressure over excess losses tied to non-marine exposures, specifically Auto.
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
