Although marine hull insurers sought to increase rates wherever possible, significant increases were not achieved due to tremendous overcapacity for the most common vessel types and required values. The North American marine liability insurance market continued the hardening that began in late 2008, although it became far less severe as the year progressed. Cargo, however, could be called a “buyer’s market.”

Looking Ahead

The absence of catastrophic losses in 2009 and the desire of several key insurers to increase premium market share will likely keep pressure on rates into the first, and possibly the second, quarters of 2010. A strengthening economy in mid-2010 would potentially serve to increase the premiums available to the cargo and stock throughput insurance market. However, the soft market pressures on insurers would be expected to continue through the balance of 2010.