Questions, Questions, QuestionsJuly 8, 2021
Marine insurance markets are tightening their belts. The changes our firm has seen in the past few years has been plenty.
Insurance companies, like their reinsurance companies that insure them, are not making the proper profit to operate. Reinsurance companies are the companies that insure the insurance companies in a catastrophic event. Hurricanes, fires, floods, wind, aircraft disasters, personal injury…Reinsurance companies take over the cat loss at a certain amount, relieving the primary carrier of any additional financial responsibility. Reinsurance companies have not shown a profit since 2013.
Consequently, companies have 2 choices, raise their rates to cover the ever increasing costs of repairs, liability losses and the cost of doing business, or, exit the class of business completely. In the past 5 years we have seen several companies leave the marine insurance business, leaving their policy holders in a bad position.
Our advice is to stay the coarse and trust in your marine insurance specialists to make sure your policy is placed with a company that is financially secure, treats each and every client fairly, consistently with reasonably priced premiums.