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LONDON MARINE | London’s Future In association with Ince
London still matters Julian Clark, Global Senior Partner at Ince, and Tony McDonach, (below) of leading maritime insurance law firm Ince, explains why the London market remains the pre-eminent hub for the global maritime insurance market. To maintain that position the market needs to continue to invest in the people and expertise that have served it so well through the years There is a perception that London is facing increasing pressure from overseas maritime insurance markets including Singapore, Hong Kong and Dubai, as well as the more established markets of Scandinavia, Europe, and the US. However, the reality is that each of these alternatives are not completely separate markets. The London market maintains a strong presence in these international markets and operates as a true worldwide market with different outposts. While its competitors may argue they have a track record in some areas of coverage, London remains the real base of excellence for all lines of business, especially complex risks. The London market has already weathered a number of the hard decisions on regulation and the proper pricing of their products. Significant amount of capital is still flowing into London. Assurance confidence is high, returns on investment are good, and secure. Investors know that underwriting in London is going to be well-managed and provided on reasonable terms.
GREAT MINDS
The lead underwriters on any risk need to be true leaders in their field, just like their broking, claims and loss adjusting counterparts. Customer’s claims experience remains extremely important and a key driver when assureds and their brokers are going through a selection process. The need to ensure that claims are fairly considered and speed of settlement are equally key factors in the decision making process. This is an area where the service provided by the London market The Marine Insurer | March 2022
has vastly improved. From top to bottom, everywhere in the process, London provides a number of the best insurance minds in the world. These professionals are the brains trust of the insurance world and the London market’s human capital. Very high levels of professionalism in all aspects of the market decrease the likelihood of disputes. But, if things do go wrong and the usual commercial processes fail, London has the additional advantage of a pre-eminent legal industry which has been closely aligned to the marine and insurance worlds for hundreds of years. It is of course also a trusted and efficient legal system which is why it remains the predominant venue for determination of disputes whether through the court system or arbitration where the LMAA (London Market Arbitrators Association) is an organisation synonymous with quality and excellence. The UK’s maritime tradition has also meant that all of the insurance-related industries have benefited from the flow of experts of all kinds moving from the shipping to the insurance industry. For example if you’re trying to insure a heavy lift vessel or specialist operation, assureds are given comfort from knowing that the people underwriting the subject matter and managing the claims process can actually comprehend and articulate the risks that the assured is facing. Having said all of the above it has to be acknowledged that the competing markets are not without their own strengths. The onestop shop approach adopted by some of the non-London providers can be highly attractive to potential buyers. For example, insurance is packaged and sold well in Scandinavia bringing convenience and in some cases reducing cost. But, the fact
