Smooth sailing: How to navigate your way into marine insurance
Marine insurance is a highly specialised area that requires expertise - but are there opportunities for general brokers to move into the space? JOHN NAGLE of Lumley Insurance and STEPHEN RUDMAN of Jardine Lloyd Thompson tell Insurance Business what brokers need to know before diving in.
Video transcript below:
Donna Sawyer, Business Online
Donna Sawyer: If you are a general broker who wants to try your hand at Marine Insurance, you may be lost at sea. John Nagle of Lumley Insurance says marine insurance is a niche that requires a high level of expertise.
John Nagle, Lumley Insurance
John Nagle: I think brokers need to be cautious so that they don’t assume it’s so simple and they really should look at their own expertise and competence. If they think that their client has special needs, they need to align to an underwriter that’s going to give them that support or conversely they need to bring in someone who can support them as a specialist marine insurance broker.
Donna Sawyer: He says navigating through the complexities of Marine Insurance is not always smooth sailing, particularly when dealing with clients who need international coverage.
John Nagle: The difficulty is actually assessing a client’s real needs and if they are just glibly assuming that it’s a simple transit form, you know Australia to another country in the world and there is no problems, well they might be in for a shock. You know different legislations, different shipping patterns, different types of packaging are all in the arena of causing problems for customers and if they don’t know about it, they haven’t taken the time, taken the indepth look at that customer’s needs, everyone could end in grief.
Stephen Rudman, Jardine Lloyd Thompson
Stephen Rudman: Around the world it’s highly regarded that only marine specialists can place with marine business and I think with global trade increasing and the demand for import and export, so is the demand for marine insurance and because of that I believe it’s a good opportunity for brokers to get into the marine insurance space.
Donna Sawyer: Stephen Rudman of Jardine Lloyd Thompson agrees marine insurance is highly specialised, but says there are opportunities for brokers to move into this space if they are prepared to make the effort.
Stephen Rudman: Without a doubt I think there is a good opportunity there for general brokers to move into the marine space. Certainly this is not something that would happen overnight. You would need dedicated industry experience and accreditation. To give you an example, JLT’s marine team globally on average have a service period of 14 years and the senior marine managers have an average of 24 years experience in the marine industry.
John Nagle: Looking in the future, it’s really dependent on international trade movements. Australia’s competitive position in terms of exports and imports will dictate what our clients needs are, where they are sending goods to, where they are receiving goods from and then the complexities of those countries of origin or destination. So marine insurance absolutely has a very bright future in Australia.
Donna Sawyer: This is Donna Sawyer reporting for Insurance Business.