Iumi has mixed expectations for maritime insurance
Sean Dalton, chairman of Iumi's (International Union of Marine Insurance) cargo committee, recently reported a 2.5% increase in 2018 global premiums to USD 16.6 billion. However, the rise was largely attributable to growth in global trade and exchange rate fluctuations.
Dalton characterised the marine cargo market as being in a state of "accelerating change" driven by underwriters taking action to address unprofitable results and to improve performance. He explained: "On a global basis, the cargo line is unprofitable and has been so for a number of years. Premiums have not been technically adequate to cover losses and expenses and, as such, have not delivered an acceptable return for capital providers."
World trade global growth is expected to achieve 2.6% in 2019 and 3% in 2020. This, coupled with governments in emerging markets investing in infrastructure and promoting domestic manufacturing, gives a positive outlook for cargo insurance. However, weaker economic projections and concerns over trade wars may dampen expected growth and are a reason for concern. (fd)