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Survey Report

Insurance Marketplace Realities 2022 – Marine hull and liability

Marine
N/A

November 15, 2021

The marine market remains firm, with underwriters still seeking increases on clean business while mandating cyber and communicable disease exclusions — for the first time on many policies.

Rate predictions

Rate predictions: Marine Hull and Liability

 
Trend Range
Domestic hull and machinery, good loss records
Increase (Purple triangle pointing up) +7.5% to +10%
Domestic hull and machinery, poor loss records
Increase (Purple triangle pointing up) +20% or more
London/international hull and machinery, good loss records
Increase (Purple triangle pointing up) +10% to +15%
London/international hull and machinery, poor loss records
Increase (Purple triangle pointing up) +20% or more
P&I domestic
Increase (Purple triangle pointing up) +10% to +15%
P&I London/international
Increase (Purple triangle pointing up) +12.5% depending on individual club performance
Domestic primary marine general
Increase (Purple triangle pointing up) +5% to +15%
Domestic excess marine liability
Increase (Purple triangle pointing up) +10% to +20%, greater with underlying crew and towing exposure
London marine liability
Increase (Purple triangle pointing up) 15% or more
USL&H mutual
Neutral Increase (Purple triangle pointing up) Flat to +5%

Key takeaway

The marine market remains firm, with underwriters still seeking increases on clean business while mandating cyber and communicable disease exclusions — for the first time on many policies.

Underwriting in the current environment is demanding.

  • Due to reinsurance restrictions, all markets are mandating disease and cyber exclusions.
  • Excess underwriters are seeking to reduce capacity, and quota share placements are the norm.
  • Placing of excess coverage over $1 million primary placements is increasingly difficult in the face of reduced carrier appetite.
  • Marine bumbershoot underwriters have in the past written policies with underlying non-marine liability exposures, such as auto, employers liability and CGL policies. They are becoming reluctant to do so due to adverse loss experience and the underpricing of these exposures. Marine reinsurers have also increased their scrutiny of extending coverage over non-marine risk.
  • Burdens are increasing on both sides of the negotiating table. Underwriters are requiring substantially more data for renewals and new business.
  • The high number of buyers marketing their business is overwhelming underwriters, whose time to review is limited.
  • Underwriters remain under scrutiny by their senior management, who have become much more involved in the process. This negatively impacts the renewal process 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 subsidiaries of Willis North America Inc., including Willis Towers Watson Northeast Inc. (in the United States) and Willis Canada, Inc.

Contact

Phil Gran
Shipowners Leader, North America

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