Marine Insurance
Marine insurance is experiencing a period of rapid change, with a prolonged struggle to deliver underwriting profit forcing companies to reevaluate their proposition and the need to modernise. The class of business on which Lloyd’s was founded, the marine market is now navigating through a transitional period as it embraces technological reform and looks to rebuild its profit margin against a challenging operational backdrop.
Viewpoint: P&I clubs need to factor future shocks into their pricing
With the P&I renewal season over, clubs faced some tough pricing decisions amid pressure to take into account both present and future challenges facing the market
Viewpoint: P&I clubs must think in new and constructive ways to be sustainable
The longevity of the P&I club business model is based on sustainability, but sustainability also has an economic dimension in the form of realistic risk pricing
Focus: P&I rate hikes ‘modest’ given losses
With underwriting losses likely to be only partially offset by modest investment earnings, clubs are expected to see an overall decrease in free reserves for the last fiscal year
Focus: Large loss management remains a critical issue for clubs
Covid-19 has created a number of complex challenges for the P&I sector, but it is the size and frequency of major casualties that continue to test resilience of the market
Focus: The marine mutuals must consolidate to thrive in these trying times
To remain relevant, the P&I clubs require economies of scale to grow services for members and invest meaningfully in loss mitigation and prevention
Focus: Digital transformation can deliver a bright, new future for the P&I sector
To thrive in the decades ahead, the P&I sector must focus on technical profitability, technology adoption, business diversification and taking its environmental stewardship to a new level
North P&I puts aquaculture and controlled growth at centre of diversification strategy
After the large losses suffered by Skuld and the Standard, North P&I Club’s chief executive is only too aware that while the benefits of diversification can be substantial, so are the risks
P&I pool claims set to top $500m and cost clubs A ratings
International Group affiliates can probably eat up the worst year for the pool on record, industry sources insist, but if 2021 is as bad as the past 12 months, the strains will readily be evident, they warn
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