US inland marine line premiums up sharply in 2021
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U.S. inland marine line premiums increased 15% in 2021 after falling 2% in 2020, according to a report Thursday from A.M. Best & Co.
Inland marine direct premiums written grew by an average of 8% per year from 2011 through 2019 before pandemic restrictions sharply curtailed activities such as travel, construction and transportation, A.M. Best said.
The rebound is expected to continue.
“If the U.S. economy avoids a prolonged recession, inland marine premium should continue to grow,” Christopher Graham, senior industry analyst, industry research and analytics, for A.M. Best, said in a statement with the report.
The inland marine sector’s loss ratio also improved by approximately 15 percentage points to 49.5% for 2021, “in line with the loss ratio prior to the pandemic,” the report said.
The trip insurance sub-segment of inland marine insurance saw the greatest pandemic challenges as business travel plans and vacations were cancelled, triggering contingency payments. Meanwhile, new travel plans were put on hold, limiting the purchase of new policies.
According to the Transportation Security Administration, the volume of travelers processed by the agency dropped by more than 90% in April and May 2020, the first two full months after the onset of the pandemic in the U.S., compared with the same time frame in 2019.
Inland marine insurance can include an array of coverages for cargo, communications equipment, event cancellation, personal watercraft and even pet health insurance.
