THE INSURER

Soft times a-coming

21 years ago

All of sudden, if you are a port operator or a port authority, the international insurance market located in London has the welcome mat out for you. In addition to the TT Club, there are market segmenters at work aiming at different parts of the whole. If you are a capital intensive waterfront operation with a large amount of property at risk, the consortium at Lloyds known as Wavelength will happily take your risk for a price.

No real bargains here as the fellows over at the Coffee Pot have been bitten a few too many times to be tempted by the easy money to be had from the sector.

If you want no fancy bits and a competitive price, the Navigators is worth a shout. It spent the years since 9/11 trading punches with the Club.

This year the underwriting staff from the Navigators decamped to the St Paul’s – they will very probably offer even keener rates from their new home to attract their former clients.

Then there is the ITMU, a facility set up by Peter Rogers, one of the great discounters of the marine market, back again courtesy of Hanover Re. His old operation in Ipswich, now renamed Allianz, reopened after a hiatus and will have a go at the right port operation.

What does all this portend for ports?

Well if you tend to buy your insurance from the London market, make sure you ask your broker to canvass the insurers particularly thoroughly this renewal season. Many of the choices on offer are indistinguishable so far as security is concerned, and as service standards tend to be low, the wider spread of companies offering cover means that price will be a dominant element.

But not one of the companies mentioned has done anything particularly progressive so far as technology, distribution or product design are concerned. They are writing a textbook for the commodification of their sector.

Softer market here we come.