Marine rates continue to drop
After a drop of 2.5% in the second quarter of 2007, rates for marine insurance dropped another 2% in the third quarter, according to the WaveLine Survey, which measures the changes in price and availability reported by top marine and longshore agents, brokers and carriers in both the United States and London. WaveLine is an online survey sponsored by LIG Marine Managers, a provider of commercial marine and longshore insurance solutions.
Rate decreases varied from an average rate decrease of 0.9% in the Northeast to 3.5% in the Gulf/South. LIG Marine Managers commented, “It can be argued that the Gulf/South rates had farther to fall than the rest of the regions, with rise after rise in previous surveys, but a more competitive market and a quiet storm season certainly has added to this effect.”
Classes of business
Rates for every class of business fell as well over the period, ranging from modest reductions in maritime employers liability (MEL) at 0.2%, to another massive reduction in cargo at 5.6%. This is the second straight quarter that cargo has led the pack after a further 5% reduction in the second quarter.