The past 20 years has seen a marked increase in the capacity of the satellite insurance communities that serve the cargo market.
Today’s competitive insurance hubs, such as Singapore, Miami and Dubai, are staffed with professional underwriters and are accessed by both local brokers and global brokers.
These markets enjoy a number of advantages over London including regulatory expertise, common languages and an understanding of the dynamics of their own domestic economic space. This has allowed hubs to sweep up a lot of the regular business that once came to London.
“Where London was guaranteed leadership and full access to an oil trader’s cargo or a cargo-orientated start-up project, that dynamic has changed. Where the main limitation on a local market was unavailability of local capacity, that issue has now changed completely,” says Nick Peck, Chairman of JLT Specialty’s Cargo team.
In order to compete it is vital that the London market adds value through product focus.
“London can offer product design and policy form. Whilst any local market can write transit and storage when you dig below the surface, you often find the policy forms are quite rudimentary and don’t really serve the needs of a global business,” Peck says.
Also, the London market has upped its game in terms of paper and the clerical process.
“The speed of response in London impresses clients from around the world time and time again. Relatively complex business risk scenarios are agreed by insurers quickly but not in a cavalier manner,” adds Peck.
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For further information, please contact Nick Peck, Chairman of the Cargo team on +44 20 7466 6511 or firstname.lastname@example.org