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.”