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US Inland Marine Insurance Segment Recovers From Pandemic Hurdles – InsuranceNewsNet

OLDWICK, NJ–(COMMERCIAL WIRE)–
the U.S Inland shipping recovered to pre-COVID-19 pandemic levels due to a sharp increase in first-line premium and a decline in the loss ratio, according to a I am better report.

The new Best’s Special Report, titled “Inland Marine Rebounding From Pandemic Obstacles,” states that inland marine insurance, generally among the most profitable property/casualty (P/C) lines, experienced its worst loss ratio in 12 years in 2020, even higher than the P/ Industry C overall loss ratio, breaking a decade-long trend. Amid the pandemic surge, inland marine insurers saw costs rise significantly to settle damaged cargo claims and event cancellation contingency claims.

However, according to the report, inland maritime premiums recovered and grew by 15% in 2021, after a 2% drop in the previous year, attributable to the lifting of cargo movement and travel restrictions due to COVID-19, the economic recovery and general tightening. of the commercial insurance market. “If he U.S economy avoids a prolonged recession, the inland maritime premium should continue to grow,” he said. Christopher Graham, Senior Industry Analyst, Industry Research & Analysis, AM Best. “The general tightening in the real estate market and the increasing focus on proper property valuations should contribute to the growth of inland marine premiums.” The inland marine segment loss ratio also improved by approximately 15 percentage points to 49.5%, in line with the pre-pandemic loss ratio.

Inland marine insurance is made up of a very diverse group of coverages, including cargo insurance, communications equipment (eg, cell phones), event cancellation, fine arts, personal watercraft, and pet health insurance, among others. In particular, pet and travel-related lines of insurance were highlights in 2021, related to pandemic factors. “Although the market remains heavy, with two insurers writing more than 25% of direct premiums, the concentration has been slowly diluting,” he said. David Blades, associate director, industry research and analysis, AM Best. “As niche coverages such as pet insurance grow, AM Best expects further market dilution.”

Going forward, the inland marine insurance segment could be affected by lower shipping activity due to inflationary pressures, and if the United States moving towards a recession. However, inflationary pressures on freight values ​​could also lead to increases in premiums that outweigh the decline in goods shipped. At the same time, inflationary pressures will also test construction spending, which rebounded in 2021 and even surpassed 2019 levels. Housing starts, which were near a post-financial crisis peak, also began to fall. .

To access your full copy of this special report, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=307908.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based in the United StatesThe company does business in more than 100 countries with regional offices in London, amsterdam, Dubai, Hong Kong, Singapore Y Mexico City. For more information visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Christopher Graham
Senior Industry Analyst, Industry

Research and analysis

+1 908 439 2200, ext. 5743

[email protected]

Christopher Sharky
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

David Blades
Associate Director, Industry

Research and analysis

+1 908 439 2200, ext. 5422

[email protected]

jeff mango
Managing Director,

strategic communications

+1 908 439 2200, ext. 5204

[email protected]

Source: AM Best

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