With ports closed and commercial shipping activities reduced, less impact on marine liability is anticipated - Miller
In its latest Marine Liability Report, re/insurance broker Miller notes that certain classes of business have a high exposure to claims emanating from the Russia-Ukraine crisis, including marine war, property and aviation.
“The potential scenarios around these classes have been well covered in the media already,” notes Miller.
”From an insurance perspective, commercial shipping in Ukraine and Russia has reduced significantly and many ports have been closed,” it adds.
“Whilst these both reduce marine liability exposure, there could be instances where circumstances potentially give rise to a liability claim.”
Will losses halt rate flattening?
The report notes signs that the level of rate increases are tapering, with single figure rises for some accounts being achieved.
However, there are a number of potential large losses within the marine and energy liability market that could alter this rate flattening.
They include the “Felicity Ace” car carrier that sunk on 1 March 2022; the Repsol oil spill in Callao, Peru in mid January; and a lawsuit relating to a 2020 incident that occurred onboard the Transocean drillship, “Deepwater Asgard” in the US Gulf of Mexico.
“Incidents such as these could evolve into large reinsurance losses, and considerably impact the market,” notes Miller. “We take a keen interest in any situation that could impact our clients, and the market generally, and will be watching closely as things progress.”
”We expect that markets will continue to draw on any major marine or energy casualties to explain why the rating environment should continue to rise.”