The commercial inland marine insurance industry is looking forward to a strong 2015. The construction and transportation industries continue to have a big impact on the inland marine insurance world. Construction is expected to remain strong, with increases in construction startups and commercial building anticipated. This bodes well for the builders risk and contractors equipment lines of insurance because of increased exposures that come with growth in the construction industry.
The transport and logistics industry is forecasting growth for 2015. Truck sales remain strong, with manufacturing and retail sales continuing to look up. The transportation lines of inland marine, motor truck cargo and warehouse legal liability have a direct correlation to the economy. With more goods being produced, stored and transported, exposures and, therefore, premiums will be increasing.
Technology applications for inland marine underwriting will continue to have a strong influence on the industry. The industry is expected to experience continued advancement in the use of predictive analytics, a broad term for the practice of using essential data — historical, scientific and engineering to evaluate the potential and probability of risk and loss from natural hazards such as flooding and hurricanes.
While there’s a healthy outlook for the commercial inland marine insurance industry, the market remains very competitive. Overall, pricing remains tight, squeezing profitability, and the industry is facing a challenge to recruit and train new talent to replace the retiring baby boomers.
Kevin O'Brien, President and CEO, Inland Marine Underwriters Association