Gloomy Outlook Inspite of Good Predictions
Monday, December 15th, 2008
Economists and industry experts had high hopes for the marine insurance industry which was seen performing solid last 2007. This made it easy for people to predict better than usual earnings for the industry last year but year end statistics and financial information shows higher than usual losses in income due to high claims filing and other factors. The experts took another look at the industry and were forced to revise predictions opposite previous expectations. Like other coverage areas of the insurance industry, losses are mounting and the recession in the US and in the UK are not helping either. The goods are flowing as they always have but shippers are having to file claims as losses have to be trimmed down lessening income of insurers.
Extreme weather has also caused many a delay and damage to ships and the cargo they carry resulting in higher than normal claims. The warmer weather is making seas rougher and these storms are getting worse, hopefully the economic storm ends faster than their watery counterparts giving the industry time to recover from the losses of yesterday.