Rivals to Lloyd’s are exploiting increases in marine insurance rates after capacity was cut in the Lloyd’s market last year, reports Reuters.
Premiums for marine insurance were increasing after a surge in catastrophe losses in the past two years and growing geopolitical tensions. Until 2018 they had fallen for years, amid an excess of available capital, rising competition and lower claims levels,
Lloyd’s CEO John Neal said that, although the sector had performed better in the first quarter, syndicates needed to set “the right price” for the risks and to consider whether all types of marine business were insurable.
Broker Gallagher said in a February report that 10 Lloyd’s syndicates had either withdrawn or reduced their marine business.
Marine cargo rates were up 12% to 14% this year, Miles Taffs, head of marine and aviation at Lloyd’s for MS Amlin, said. Yacht rates were reported to have risen by at least 20%.
Against this backdrop, Asia Pacific and North American insurers have won business in marine cargo, said a spokeswoman for the International Union of Marine Insurance quoted by Reuters.