Marsh develops $50 million facility to address port blockage risks
Marsh develops $50 million facility to address port blockage risks | Insurance Business Australia
Marine
Marsh develops $50 million facility to address port blockage risks
Creation of the facility spurred by the Baltimore bridge incident
Marine
By
Kenneth Araullo
Global broker and risk advisor Marsh has introduced a $50 million port blockage insurance facility designed to cover shipping ports and terminals worldwide.
The facility was developed in response to the collapse of the Francis Scott Key Bridge and the resulting disruption at the Port of Baltimore. This insurance option can be purchased separately or as a supplement to existing coverage.
Available to Marsh clients globally, the facility provides coverage for revenue loss due to third-party incidents, including vessel sinkings in channels, vessel impacts leading to waterway closures, or natural disasters.
Supported by a panel of A+ rated insurers from Lloyd’s of London and the London market, the facility offers $50 million in capacity, with the possibility of higher limits on a case-by-case basis.
Port blockage has become an increasing concern for businesses in the maritime sector, leading to significant disruptions in global supply chains and revenue loss. The facility’s terms can be customised to align with the specific risk exposures and operational needs of individual clients.
Louise Nevill (pictured above), CEO of UK Marine at Marsh Specialty, noted that port blockages are becoming more frequent and severe, causing considerable challenges for businesses involved in international trade.
The facility aims to provide clients with a readily accessible layer of insurance to protect against disruptions at ports and terminals, supporting both operations and recovery efforts.
In other developments, as per the firm’s Global Insurance Market Index, Marsh reported that global commercial insurance rates were flat in the second quarter of 2024, down from a 1% increase in the first quarter of 2024.
This marks the first time since the third quarter of 2017 that the global composite rate has not increased. The moderation of rates is largely due to increasing competition among insurers in the global property market.
Average rates decreased by 5% in Canada and the Pacific and by 3% in the UK and Asia regions. Rates increased by 1% in the US and Europe, and by 4% in Latin America, the Caribbean, and the India, Middle East, and Africa (IMEA) regions.
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