OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, David Blades, associate director, AM Best, said the ongoing profitability of the inland marine insurance sector attracts competition, but competitors face the challenge of becoming knowledgeable of the sector’s specialized risks. Click on http://www.ambest.com/v.asp?v=inlandmarine619 to view the entire program.
Blades highlighted why the inland marine line of business is one of the most profitable lines in the U.S. property/casualty industry.
“AM Best believes that the effective specialization of marine underwriters over time has really driven their historical long-term profitability,” said Blades. “Additionally, diversification has played a huge part, since there are a multitude of different risks that are involved with inland marine coverage, and from an overall stability perspective, the line has again generated results that have outperformed the overall marketplace.”
Blades also addressed some of the downsides for insurers associated with the growth that inland marine insurers are experiencing.
“For established carriers and marine underwriters, new entrances intensify competition. For those carriers that choose to hold their ground when faced with insureds being offered coverage at much lower rates than they might determine are appropriate, or insureds that are given more liberal coverages, they may have to deal with the fact that they may lose some business.”
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