| Trend | Range | |
|---|---|---|
| Domestic hull and machinery |  |
+2.5% to +5% |
| London/international hull and machinery | |
+2.5% to +5% |
| P&I domestic | |
+5% to +7.5% |
| P&I crew/towing domestic | |
+7.5% to +10% |
| P&I international | |
+5% to +7.5% |
| Domestic primary marine liability | |
+5% to +7.5% |
| Domestic excess marine liability | |
+7.5% to +10%, greater for underlying crew/towing exposure – first layer |
| London marine liability | |
+10% to +15% or more |
| Domestic L&H mutual |  |
Flat to +2.5% |
Key takeaway: The marine market remains firm with demand for price adjustments across the board and higher end of range for challenging risk exposures.
Underwriting in the current environment remains demanding.
- Marine underwriters requiring premium increases for claim inflation (personal injury and increases in raw material cost) and cost of reinsurance increasing.
- Excess liability underwriters are taking a careful review of non-marine underlying coverages (specifically auto liability) scheduled under marine bumbershoot policies and requiring higher minimum attachments points (no longer accepting $1 million underlying auto limit for fleets of significant size).
- Excess liability underwriters reducing capacity and requiring ventilation between layers requiring quota share placements and additional market capacity.
- Due to political unrest globally and specifically for the situation in Ukraine/Russia, we expect significant adverse developments in the hull war market in carrier capacity, appetite, and terms/conditions.
- Underwriters seeking additional retentions on U.S. Gulf area must consider hull risks due to consistent NATCAT losses.
International group P&I clubs
- P&I club market is starting to stabilize after several consecutive years of large pool claims, high average market combined ratio and lower investment returns.
Burdens are increasing on both sides of the negotiating table.
- Underwriters are requiring substantially more data for renewals and new business, including loss control engagements.
- Underwriters remain under scrutiny to deliver profits despite fewer investment returns and an increase in claim costs in the current environment, which is negatively impacted from the buyer’s perspective.
Disclaimer
Willis Towers Watson hopes you found the general information provided in this publication 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, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).