Insurer upbeat – but don’t expect a bumper year

Last year was a tough year for every industry – and marine insurance was no exception. There was huge pressure on rates as everyone tried to cut costs. “Clients were putting pressure on their brokers who were in turn putting pressure on us,” Associated Marine chief operating officer Mike Brews told FTW. “It made it a lot more difficult to attack new business because competitors were holding on that much tighter by reducing rates. “Add to that the fact that companies’ turnovers were down – and since our revenue is based on a percentage of turnover, the extent of the impact is evident.” Despite the challenges the industry managed to weather the storm, albeit with reduced profits. And because there is such a dire skills shortage in the marine insurance field, there were no staff cutbacks – rather staff who are generally drowning were able to cope. The outlook, says Brews, is better than last year. “But,” he warns, “it won’t be a bumper year. Expect more of a recovery phase as the industry deals with the shellshock of 2009.”