Changing insurance market, Marine Cargo


After many years of relative smooth sailing, the marine cargo insurance market finds itself in much more turbulent waters today.
These hardening market circumstances are caused by a variety of reasons.
The main motives we will point out below:

  • The marine cargo industry in general has been hit severely by more unpredictable and increasingly devastating natural catastrophes;
  • The marine cargo industry is suffering from an increased number of misappropriation/ fraud claims;
  • Abundant availability of capital has caused premium levels to go down to an unsustainable level over the past years leading to an overall net negative result to insurers;
  • Low interest rates lead to poor investments results, which forces insurers to focus on improved technical results;
  • Insurance capacity on marine cargo and in particular commodity traders is reducing moving the supply curve in favor of insurers.

What does this mean for you, our client:
As your risk consultant we are here to help you navigate this hardening market. Insurance markets are pushing for increased premiums, more restrictive wordings and higher retentions. We manage and mitigate these effects through Aon’s strong market position, our unique Aon United methodology which allows us to make use of our worldwide network and most importantly our dialogue and partnership with you.