Continuing the trend from the previous year, the Non-International Group “Non-IG” market has undergone considerable restructuring and further consolidation. The insurers considered in our analysis are markets outside of the International Group offering cover to owners worldwide. The available markets have reduced in number to 9, from 13 providers two years ago.
In line with Lloyd’s of London’s strategic review of all lines of business, numerous global marine insurers have withdrawn capacity from the Non-IG market. Insurers are expected to rebalance their portfolios through recalibrating ratings and becoming increasingly selective in the type of risks underwritten.
Consequently, the variance in size of insurers has continued to increase within the Non-IG market. British Marine, Thomas Miller Speciality, MECO group and MS Amlin Marine account for 79% of the market in terms of premium income.
Overall premium income in the last 12 months has reduced by over 10%, with the combined P&I and Charterers Liability for the Non-IG market totalling USD 305 million. The chart displays the premium income of the Non-IG market since 2013.
On a five-year comparison (2013-18) there has been a 14% reduction in premium income.
Within the overall contraction there is variation in premium results between the different insurer models. Insurers writing on their own company (or a parent company) security recorded an 11% reduction in premium income. By contrast there was a 20% reduction in premium income during the same period for agencies underwriting on behalf of external security providers.
The following pages provide a brief overview and analysis of each Non-IG insurer.