Tagged: capacity, Hull and Machinery, Lloyd's, marine insurance, premiums, rates

There has been considerable activity of late in the Lloyd’s Marine Hull Market. A series of  underwriting  groups are preparing to launch new Hull operations for the 2011 year of account.

To date, we have heard confirmation of the following new entrants into the Marine Hull sector :

1)    Barbican
2)    Canopius
3)     Liberty
4)     Skuld
5)     WTK/ Munich
6)     WR Berkeley

Scor may be about to enter the Lloyd’s  Market, although we are not aware as to their areas of interest as yet. Furthermore Aspen are reviewing their existing marine hull book and may start to write Asian Hull business.

We anticipate that such a significant influx of new capacity in to the market will only benefit Assureds as it further increases the excess of capacity in the hull market.

We await with interest the effect that this increase of capacity will have on rates, but it’s fair to assume that the new incumbents will want to gain market share either through targeting previously written accounts or the acquisition of new business or, more likely, a combination of both.

In addition, we are already seeing a number of existing markets extend their core business either geographically or by tonnage in a bid to gain market share and premium income.

Asia, Asian owners and Asian based managers look set to continue benefitting from the opportunities that this represents as the burgeoning capacity is likely to put further downward pressure on rates.

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