In this report, the Centre for Risk Studies, in collaboration with Lloyd’s of London, explore the evolving marine risk landscape and its implications for insurers.
In putting together this report, the Centre worked with marine experts, underwriters, actuaries, and exposure managers, to understand recent trends in the marine risk landscape, including the presence of bigger vessels, older fleets, new and busier routes, and increasing regulation.
‘Steering the Course’ presents an alternative model to help insurers understand the ‘tail risk’ of potential losses they might experience in their marine portfolio. This analysis helps marine underwriters improve their estimation of the capital they need to support this important line of insurance business.
An important evolution of the methodology of managing the insurance losses arising from severe marine events, and is a useful starting point from which to develop further models with marine insurance experts.