Insurance Marketplace Realities 2024 – Marine cargo

Rate predictions: Marine cargo

	Trend	Range
U.S. markets
Transit
Good loss experience		Flat to +5%
Marginal to poor loss experience		+10% and higher
Stock throughput
Good loss experience		+2.5% to +7.5%
Marginal to poor loss experience		+10% and higher
London markets
Transit and stock throughput
Good loss experience		Flat to +5%
Marginal to poor loss experience		+10% and higher

Underwriting discipline persists. Insurers remain focused on bottom line profitability, with continued scrutiny of insuring terms and conditions and capacity deployed.

• Rate remediation has created an attractive entry point for new and revitalized cargo underwriting operations.
• Certain business segments and exposures are subject to more scrutiny than others, such as temperature-sensitive products, pharma, automobiles, theft attractive and high hazard CAT exposures.
• Detailed exposure information and differentiating insureds from their peers remain crucial to securing favorable terms and conditions.
• Analytical tools should be employed when available to best position clients to optimize their insuring structures (with a focus on retention, CAT limits, aggregates, etc.).

Navigating supply chain challenges post COVID-19 pandemic.

• Deglobalization: Near shoring, “friendshoring” and increased risks of political instability
• Digitalization: Use of telematics/IoT to have better insights into the supply chain
• Inflation: Supply chain costs, including raw materials, labor and transportation and increased pressure on suppliers and vendors
• Labor shortages: Ensured by aging populations, skill gaps and strikes
• Sustainability: Extreme weather making some raw materials harder to harvest or access; floods, fires and storms impacting logistic chains, while companies are also under pressure to take ESG into consideration in supply chains
• Geopolitical instability: May cause uncertainty when certain trade lanes are used
• COVID-19: While many businesses are back to near normal operations, COVID-19 still a real threat (any potential new variant could result in more lockdowns and restrictions that could threaten supply chains)

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).