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Global Marine market trends
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The market environment for heavy machinery insurance would appear to be at its most positive since 2017.
The International Union of Marine Insurers met in September 2023 in Edinburgh and have reported both a reduction in claims against a growth in premium income, which has perhaps been the main catalyst for a growth in capacity.
This increase in capacity seems to be coming from incumbents looking to capitalize on the improved market condition and new entrants into the market.
These new entrants have emerged particularly in the London market which it looks likely to see a reshifting of the balance of market share to London from Scandinavia which will potentially create a pressure on rating.
The global market appears to be more polarized for international heavy machinery and war with Scandinavia, London and Continental Europe providing the majority of capacity.
But with the Asian market showing an uptick whilst the environment hovers currently around a flat renewal environment, there is an inevitability that the desire for incumbent insurers to maintain market share whilst new entrants competing should see rates reduced through Q4 2023 into 2024.
From a whole war perspective, whilst the war in Ukraine has generated some significant losses, principally from trapped detained vessels in Ukrainian ports, the markets loss has been offset by the additional premiums charged, particularly for vessels trading into the Black Sea, but also for calls to Russian ports where permissible, which is likely to leave the market at worst in a neutral position.