Ample Global Capacity


While there is ample capacity in the marine insurance industry for the new, super-sized vessels, the challenge is tailoring coverages to the shipowner’s requirements.


“We do have global capacity today that can increase the limits of insurance to those that are required for a voyage but it’s the details of the coverage, the terms and conditions of the coverage that are most important to look at.”


Tom Denniston, Lockton


Underwriters may have the ability to issue very high limits for the new class of very large vessels, but they will do so cautiously because of the tremendous loss exposure. Among their key concerns are traveling routes; experience level of the crew, especially with technologies aboard the new vessels; and maintenance. The latter is a particular concern because there are few shipyards in the world that could accommodate such large vessels for repair.


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.


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