The Insurer

Many of the ports renew their property and liability insurance from mid-year, as opposed to the January renewal dates that apply to other geographic sectors. It looks as though Asian port operators will be able to hold premiums to their current levels, and those who can boast a sound record of keeping claims at bay may even be able to bargain for reductions.

Managers of the TT Club have been candid in their admission that rates are unlikely to harden this year. There is plentiful competition among insurers, claims have been running at fairly low levels, insureds are struggling with difficult financial prospects, and the wider insurance market is accelerating only gently at present, even though reinsurers are demanding much dearer premiums.

On the whole, the insurance sector serving ports and terminals seems to be adjusting well to the significant shifts in the fortunes of their clients. Underwriters from the major providers have spent much time talking with Far East clients to ensure they are understanding their needs and offering the right cover, while within the portfolios subtle changes can be seen.

At the TT Club, which over its 40 years has written most risks on a 100% basis, there is a greater willingness to explore sharing cover with other carriers, in line with the subscription model that traditionally underpinned the London insurance market.

Brokers are advising port management to explain more fully to underwriters the progress they have made in loss prevention measures, which in some cases has been considerable since the start of the decade. They are further asking the ports to examine minutely their range of cover, to see if some is unnecessary.

For the insurers as a whole, total premium volume this year is certain to be down, as pricing is usually assessed on turnover or assets of the client. While there is little doubt that insurance rates across the vast spectrum of property and casualty will rise in the next 12 months, some factors that make up a hard market are still lacking, and there are more than enough swimmers in the water to buoy the buyers.