Inland marine insurance includes diverse products and risks that demand deep expertise, and despite excellent results over the past decade, the line is now responding to a new set of pressures, according to a new study by Conning Research & Consulting.
“Inland marine has been the best-performing medium-sized property-casualty insurance line for the past decade. It has attracted numerous new insurers in recent years,” said Jerry Theodorou, analyst at Conning Research & Consulting. “In addition to heightened competition from new entrants, inland marine insurers also must respond to a host of pressures caused by weak economic conditions and a soft insurance market pricing environment. The slow U.S. economic recovery has particularly affected inland marine insurers, as they are more sensitive to negative trends in construction activity, construction costs, and transportation.”
The Conning Research study, “Inland Marine Insurance: Thinking Outside the Box” examines current and historical inland marine insurer performance for guidance to shape success strategies in today’s increasingly competitive environment.
“In response to market conditions, predictive modeling is beginning to affect inland marine underwriters, and that may prove to be a great help in this particularly complex line,” said Stephan Christiansen, director of research at Conning. “All property-casualty insurers have been making the transition to more data-driven approaches. While that transformation has been slower in inland marine due to its complexity, inland marine insurers that implement analytical tools most effectively will likely outperform their peers in this new environment.”
“Inland Marine Insurance: Thinking Outside the Box” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.