Magazine date:
Jul 2012 Marine insurance is suffering from the prolonged downward cycle and the never-ending economic recession. Marine hull insurance is loss-making streak since 1996. Competition has compromised any chance of investments regarding appropriate ship maintenance. Today, insurers are unable to offset underwriting losses via their financial income. In marine cargo, the container segment has been particularly strained by exacerbated competition which is likely to affect, in the premium settlement. The combined increases in oil prices as well as transport capacity compounded by the decline of freight rates may push ship owners to appeal for a decrease in premium rates.