Insurance rates for marine coverages dropped 2 percent in the third quarter 2007, according to the WaveLine Survey, an online survey sponsored by LIG Marine Managers. The survey compiles responses from the top marine and longshore agents, brokers and carriers in the United States and London.
The third quarter drop in rates comes on the heels of a 2.5 percent decrease in the second quarter 2007, LIG reports
Most notable, but probably least surprising, is the geographical split of results, which range from an average rate decrease in the North East of 0.9 percent to 3.5 percent in the Gulf/South.
It can be argued that the Gulf/South rates had more to fall than the rest of the regions with rise after rise in previous surveys, LIG noted. A more competitive market and a quiet storm season has added to declining rates.
Rates for every class of business fell as well in the third quarter, the survey reported. Rate decreases ranging from modest reductions in MEL at 0.2 percent to larger decreases in cargo at 5.6 percent, were noted. This is the second quarter that cargo has led in rate decreases. In the second quarter 2007, cargo showed a 5 percent reduction in rates.
LIG Marine Managers provides commercial marine and longshore insurance to independent agencies nationwide.