Trend | Range* | |
---|---|---|
Domestic hull and machinery | 0% to +2.5% | |
London/international hull and machinery | 0% to -2.5% | |
P&I domestic | +2.5% to +5% | |
P&I crew/towing domestic | +5% to +7.5% | |
P&I international | +5% to +7.5% | |
Domestic primary marine liability | +2.5% to +5% | |
Domestic excess marine liability | +5% to +10% (more for underlying crew/towing 1st Layer) | |
London marine liability | +25% to +30% | |
Domestic L&H mutual | Flat to +2.5% |
*All rate projections shown above are subject to good loss record accounts; higher increases for accounts with adverse loss experience.
On March 26, 2024, the M/V Dali fully loaded with containers struck the Francis Scott Key Bridge while departing the Port of Baltimore. The accident tragically resulted in the death of six bridge workers. The accident will result in exceptionally large claims in both the marine and property-casualty markets. Too early to realistically estimate the losses but the marine market is bracing for at least $1 billion. The claim has already influenced the marine excess liability markets who reinsure the International Group P&I Clubs in excess of $100 million limit. Prior to the Dali accident, minor single digit increases were the norm, and this has vastly changed post incident. The Dali will likely impact International Group P&I renewals and Marine Reinsurance Treaty renewals, which will be clearer in January 2025 when those programs renew.
Underwriting in the current environment remains demanding.
The P&I club market is starting to stabilize after several consecutive years of large pool claims, high average market combined ratio and lower investment returns. However, the Dali will likely have a negative impact on the 2025 renewals which we will report on in the next issue.
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).