Gallagher has said shipowners still have plenty of options for their marine insurance, despite a hardening market and reduced capacity.

Over the past two years, the giant insurance broker — which has a dedicated marine team in London and a global network that can tap into insurance capital around the world — has had to break the news to clients that they will likely be paying more for coverage on their ships.

Gallagher marine divisional director Mike Ingham said his advice has stayed the same during this time of hardening insurance rates.

Ingham said it is always important for shipowners to find a lead insurer with whom they can feel comfortable.

“The leader is so important, even more so in tougher market conditions. Ensuring our clients are with the right leaders is crucial and this is achieved more often than not by building a mutually beneficial long-term relationship,” he said.

“Longer-term performance is taken into account more readily than short-term shocks, and difficult stages of the market cycle are more manageable.”

Although the increase in hull and machinery rates seems to have slowed down recently, Gallagher is not expecting to see a softening of rates for some time.

The insurance broker suggested that it is no time for shipowners to panic, and that underwriters' risk appetite can still shift. Some new entrants to the market have increased options for owners and there could still be more competitive rates to be found.

“Of course appetite can change and there is always the opportunity to review leadership where pricing, service and claims handling are no longer meeting expectations,” Ingham said.

“For some owners, choices are more plentiful than 12 months ago, and it is certainly worth exploring options that are available in this regard.”

One positive for owners is that a return to face-to-face negotiations could make it more difficult for underwriters to turn down renewal business or force through higher rates.

“Put simply, it is easier to decline a risk or stick to a fixed position when negotiating over email or even the telephone. It has helped underwriters to push for the increases they so desperately needed. Thankfully, we are already seeing a return of face-to-face broking,” he said.

But Ingham added that increasing digitalisation has brought efficiencies to the market. There will be no turning back, he believes.

“We can now look forward to a new normal where the return of face-to-face negotiation is further complemented by some of the welcome modernisations and enhancements in process,” he said.