Ship Owners to See Reduced P&I Premiums in 2016
Despite protection and indemnity (P&I) Clubs announcing that they are trying to achieve on average 2% increases in premium, ship owners with good records can look forward to reductions in premiums for P&) insurance at the 2016 renewals, according to Willis Group Holdings, the global risk advisory, re/insurance broking, and human capital and benefits firm. “The International Group (IG) market has announced an average general increase of around 2%, with two or three clubs at zero, the majority around 2.5% and one club at 5%,” noted Willis in its P&I Review 2015/16 report. “It is almost certain however that market forces will prevail and lower actual renewal results will be widely achieved.
New Maritime Cargo Insurance – 'Undercover'
Willis Group Holdings has launched a new insurance facility, called Undercover, to protect cargo in transit and in store against all types of political violence, terrorism and war risks, informs shipping trade association Maritime London. The global risk adviser, insurance and reinsurance broker says that, in recent years, cargo losses worth more than one hundred million dollars have not been recovered under traditional cargo insurance policies due to critical exposures being excluded. Willis explains that traditional cargo insurance policies typically exclude certain losses, such as those arising from civil war, insurrection, rebellion and terrorism for goods in store.
Willis North America Expands Marine Practice
Insurance Broker will Deliver Expertise to Maritime and Cargo Industries in Eastern Virginia and Mid-Atlantic Region. Willis North America, a unit of Willis Group Holdings, the global insurance broker with operations in Virginia, has announced two key appointments to strengthen its Marine Practice and drive growth across the region. Willis is a leading insurance broker that provides risk management and employee benefit solutions across a wide range of industries. With more than 2…
Marine Insurance Brokerage Makes Key Appointments
Willis North America, a unit of Willis Group Holdings, the global insurance broker with operations in Virginia, appoints two Client Advocates. Jeremy Sykes and Francesca Sykes have been appointed Client Advocates of the Willis Marine Practice, Willis of Virginia. They will be responsible for business development within the Marine Practice. Mr. Sykes and Ms. Sykes will also work to expand Willis’ footprint in the Virginia marketplace and align the company’s global resources to deliver outstanding risk management services to firms in the Marine industry. Commenting on these appointments, HB Whitmore, Managing Partner, Willis of Virginia said…
“Perfect Storm” Results in Most Challenging P&I Renewal
The upcoming Protection and Indemnity (P&I) renewal is poised to be the most challenging in a decade as a result of difficult economic conditions for ship operators, poor underwriting results and some of the largest claims in history, according to Willis Global Marine, a division of Willis Group Holdings plc (WSH:NYSE), the global insurance broker, in its annual P&I Market Review. The P&I market results last year (2011/12) showed a 13% increase in incurred claims, a 5.9% underwriting loss and only a 2.7% investment return. Total market free reserves increased marginally (4%) but tonnage increased by 9% over the same period. The market is therefore larger, but proportionately slightly weaker than the previous reporting period.
Maritime Industry, Marine Insurance, Difficult Year Ahead Says Willis
After an inauspicious start, 2012 will be another difficult and uncertain year for the maritime industry faced with the aftermath of the Costa Concordia, further problems in the Euro zone, pirate attacks and increased sanctions, according to the latist Willis Marine Market Review (part of Willis Group Holdings, the global insurance broker). The latest report reveals the Hull market is in a state of flux following the Costa Concordia disaster in January. Some underwriters in the London insurance market, which will bear the majority of the estimated USD 500m hull claim, are adamantly refusing premium reductions or even flat renewals. However, unaffected underwriters in the Far East and Scandinavia are more open to negotiations.
Katrina, Rita Cost to Oil Industry Rises to Record $17b
Transocean Inc.'s Deepwater Nautilus rig should have spent the last two months drilling for oil and natural gas in 8,000 feet of water in the Gulf of Mexico, earning $220,000 a day. Instead, the vessel sat idle in a Texas shipyard. Workers last week finished the latest round of repairs on the Nautilus after Hurricane Katrina tore the 50,277-ton rig from its moorings and Hurricane Rita grounded it. They also added mooring points to lessen the chance of a repeat. The 2005 storms have cost Houston-based Transocean, the largest offshore driller, about $135 million for repairs, downtime and equipment upgrades. At least Transocean is done counting. A year after Katrina, the biggest natural disaster ever in the energy business, companies are still tallying the damage done by the hurricanes.
Marine Industry Continues To Suffer From September 11
Still more than five months later, the maritime industry continues to feel the effects from the terrorist attacks on America, as the events of September 11 have accelerated hardening market conditions in the marine sector. Prior to September, capital providers were beginning to force the upward trend of the cycle. This trend was underpinned with some withdrawal of capacity and reduction in the overall number of players through mergers or withdrawal from the class. Much of the recent aviation war losses (Air Lanka and WTC) are to be paid by the marine war market in which they were underwritten. It is therefore unsurprising to see a strong impact on the appetite and rating of marine war business. been imposed in the cruise vessel sector.
