MARINE CARGO RATE INCREASES TO SLOW: GALLAGHER

Improvements in underwriting conditions for marine cargo insurers could lead to a slowdown in rate rises in the first half of this year, broker Gallagher said. Carriers have adjusted their portfolios to align with their underwriting appetites and the broker said as a result it expects “insurers are likely to want to retain lines on existing business”. While the end of last year was marked by rate increases of between 15% and 20%, improved performance in this line of business could push general cargo insurers to decelerate future rate increases to between 10% and 15%. “Depending on performance over the next six months, rate increases could continue to reduce,” Gallagher added. Insurers could also be tempted to write more new business in the second half of this year in an effort to counteract the effects of the slowing economy. With the headwinds caused by Covid-19, carriers could struggle to reach their premium targets, the broker said.