The Global Economy, Rising Risk and Marine Insurance Markets: Risk and Reward in a Troubled World

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, at the Houston Marine Insurance Seminar, focuses on increasing risk on the global level and how it impacts ocean marine insurance markets. The presentation provides a property/casualty (P/C) insurance industry outlook, which notes that modest growth will continue in 2014 (about 4 percent in direct written premiums in the U.S.); that rates will remain marginally in positive territory, although there is more concern for commercial lines in late 2014 and into 2015; and that reinsurance pricing will remain under pressure, particularly for property risks. A section on risk and insurance from a U.S. and global perspective notes that marine insurance is very sensitive to the global economic and political environment. In a section on ocean marine insurance, the report explains that while vessel losses have dropped, underwriting performance remains volatile. Data are provided on combined ratios, direct written premiums and vessel losses by year, by region, by cause and by type. The report sets out five major categories of external global risks, uncertainties and fears: economic risks, geopolitical risks, environmental risks, technological risks and societal risks, noting that globalization can create opportunity and wealth at the same time potentially creating and amplifying risk. Further sections include global insurance premium growth trends, a P/C insurance and reinsurance industry financial overview and a review of P/C underwriting.