A Message from Divisional President, Michael Csorba
Welcome to the latest edition of Great American’s Ocean Marine newsletter, OMTideings.
I recently surveyed 28 Marine Carriers/Reinsurers for the “State of the Marine Market” presentation I delivered at the BMUSF seminar in April. The good news is that the market is in a healthy position after growing to $4.2 billion and results improved in 2020 and 2021. The market loss ratio improved by 4.5 points and 3 points respectively, per AM Best. The majority of markets plan to grow in 2022 (primarily with rate and exposure) and add staff new to Ocean Marine.
Carriers also shared that their top concerns are catastrophic events and inflation. The consensus prediction by NOAA, CSU and AccuWeather, is an above average hurricane season. Rising loss cost trends are a big concern for companies as the country faces record inflation driving up the cost of parts, materials and labor. And social inflation is impacting the claims side of the business.
As I mentioned in San Francisco, a continued disciplined market will ensure the health and performance of our specialized line of business so we can be there to support global trade and fulfill our promises to your clients.
In other news, we welcomed Steve Clark, SVP & CUO, to the organization in May as we said farewell to Chip Downing after 27 years of distinguished service and dedication to the Ocean Marine Division. We bid farewell to Chip and celebrated his successful career at Great American Tower in Cincinnati with 54 fellow Ocean Marine staff.
Thank you for your continued support of Great American and for all the great you do.