Perspective

How Facultative Reinsurance Can Help Ocean Marine Insurers [Presentation]

May 15, 2014| Von Sydonie Williams | Marine, Property | English

Our ocean marine clients bring us a wide range of risks, from individual shipments to complex project cargo on a single and open policy basis.  Some cargo insurers, for example, have growing concerns about how to manage peak shipment values coming from a single contract.

Their concern arises when an assured switches to fewer but larger shipments to achieve economies of scale.  Vessels are getting larger and can carry more, and when commodity prices peak, those mega container ships will be carrying even more valuable cargo. It can mean the cargo insurer might set a line size based on these potential peak exposures – and settle for a smaller percentage of the account.

Cargo insurers don’t want to walk away from potentially profitable business or to have to rely on their competitors to complete the placement, but they’re concerned about the potential downside.

Now, however, they don’t have to worry: We came up with a facultative solution that allows our clients to write the whole risk and, at the same time, manage the volatility in their book. As a global team with broad expertise, we can look at any cargo and offer capacity relevant to you.

 

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