Insurers face double dilemma from low premiums rates for hull, machinery insurance
Posted On: Sep. 15, 2015 12:00 AM CSTInternational Union of Marine Insurance president Dieter Berg said that the persistent softness in rates for hull and machinery insurance has put insurers in a double dilemma as they are facing the burden of insufficient investment returns due to low interest rates along with poor underwriting results.
Low premium rates for hull and machinery insurance is expected to continue to benefit shipowners amid abundant supply of risk capital for marine insurance and high liquidity in capital markets, reported IHS Maritime 360. Underwriters find themselves in a market environment "none of us had been in before", another IUMI official said.