Addressing Evolving Needs


Supply chain and operational risks, as well as the sheer size of the new ships, demand new coverages and higher limits.


“I think we’ll find more convergence between financial risk coverages and marine liabilities in the future.”


Tom Denniston, Lockton


Control of damaged goods is an emerging area. For example, if a pharmaceutical product is out of the custody of the carrier, the company will consider it damaged goods because of potential liability even if there is no physical damage.


Another trend is the need for higher limits because of the increased size of vessels, their larger cargo capacity and the potential for a large catastrophe. Marine insurers will also have to adapt their products to the technology changes taking place.


Financial risk products could enter the world of marine marketplace to protect against revenue risks associated with a marine operational exposure. Underwriters have not yet embraced this idea because they view it as insuring a financial interest.


Copyright © 2011 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18