A likely consequence of the pandemic is that cargo customers will demand broader cover from insurers, in particular to help mitigate the impact of COVID-19 related risks. Growing accumulations of cargo exposure and the increased reliance on technology will also both have implications for exposures and the types of cover sought by customers.
If the insurance industry is to support the shipping industry in the months and years ahead, it will need a sound footing. At present, the marine insurance industry has a problem with profitability. Despite growth in seaborne trade, global marine insurance premiums have not kept pace, and are lagging behind the increase in exposure from larger vessels, bigger ports and higher cargo values and accumulations.
Insurers are under intense pressure from stakeholders to produce underwriting profits, and we have seen capacity contract in major markets like London, where some insurers have withdrawn from marine lines. A healthy insurance market is essential for customers because a strong insurance industry is better able to respond to their needs. Rates are now increasing, but they have yet to reach levels that will compensate for the growing numbers of large claims, while the industry has yet to solve the problem of how to assess and price for accumulation.
HDI Global Speciality SE is a long-term player in the marine insurance market, backed by a team of industry experts with a vast specialist sector knowledge. We are a strong and reliable insurance partner that listens to clients and responds to their needs with tailor-made solutions. HDI Global Specialty SE remains committed to the maritime industry and ready to take on the challenging times ahead.