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Member, Beacon International Group, Ltd.
LONDONMarine insurance rates are broadly stable, according to a market review from Aon Ltd.
The market is a competitive one, and continues to attract new investors, which is preventing rate hikes, according to Aon's report.
Hurricanes Katrina and Rita caused "comparatively few marine hull and cargo losses, contrary to some initial fears," the report noted.
As a result, marine reinsurance rates were largely unaffected by the storms, the report noted.
Aon said it expected protection and indemnity club rates to rise by an average of between 5% and 6% in 2007. It noted that it expected other clubs to follow the example of The West of England Club, which in 2006 made a cash call to fund for future solvency requirements, though such cash calls in preparation for the European Solvency II regime are likely to be more gradual, it added.