AXA XL Partners with US Marine Insurance Group
AXA XL, the property and casualty and specialty risk division of French insurance major AXA, has entered into an underwriting agreement with US Marine Insurance Group (US MIG), a program administrator for a delegated underwriting arrangement, to expand its Inland Marine insurance services within the supply chain and transportation sectors.
The agreement allows AXA XL to leverage US MIG's expertise as a program administrator for delegated underwriting arrangements, thereby expanding its reach and capabilities in a rapidly growing market.
The collaboration aims to address a wide range of risks associated with transportation and logistics, including coverage for storage and goods in transit. This initiative is part of AXA XL's strategy to fill gaps left by standard inland marine policies, offering more tailored and flexible solutions to meet the specific needs of these industries. Both companies see this partnership as an opportunity to enhance their leadership in the inland marine insurance market and provide comprehensive protection for assets throughout the supply chain
Ken Mueller, Head of Inland Marine at AXA XL says: "In partnering with US MIG, we're expanding our reach, expertise, and leadership in the Inland Marine insurance market. Transportation and logistics businesses are growing rapidly. They need the right inland marine coverage to safeguard their assets."
Joseph DiPaola, President of US MIG, adds: "We're excited to team up with AXA XL's Inland Marine team because of their extensive Inland Marine expertise and capabilities. Together, we are well positioned to address various inland marine risks, flexible coverage options, and tailored solutions for specific industry needs. We're excited to join forces to fill gaps left by standard inland marine insurance policies, ensuring that assets are protected throughout the supply chain."
Maritime insurance in 2024
In 2024, the American maritime insurance sector is heavily affected by global economic shifts, technological advancements, and increasing regulatory demands.
Mike Perrotti, Head of North America Marine, AXA XL, writes: "Continued success providing ocean and inland marine insurance requires addressing our clients’ changing risks. From the impact of climate change and technological advancements to evolving regulatory landscapes and shifting market dynamics, the marine insurance industry is navigating through challenging times."
"The marine insurance industry plays a crucial role in supporting global trade… mitigating risks for shipowners, cargo owners, and stakeholders across the maritime sector.
"The market continues to grow. According to the International Union of Marine Insurers (IUMI), global Ocean marine insurance premiums in 2022 increased to US$35.8 billion, +8.3% increase over 2021. North America represents ~8.5% of those premiums.
"IUMI attributes this growth to a post-pandemic rebound in global trade, increased vessel values, wind farm development, and marine construction activities. Higher premiums are also the result of reduced market capacity, particularly for hull insurance."
"Marine insurers are working hard to stay ahead of these developments to provide the right insurance coverage for clients, but also to manage its own financial health and sustainability. Continued success will depend on the ability to innovate, stay ahead of emerging risks, and meet the evolving needs of shipowners, cargo owners, and other stakeholders in the maritime sector. This is not new for the marine insurance industry as it always navigated new and emerging risks and will continue to evolve for many years to come."
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