Markel International's Colin Fordham moved to Singapore from London nine years ago and says he has never known a more positive outlook for marine insurers in the region.
Commenting on the prospects for the Asian marine market, the company’s Asia director and senior marine liability underwriter says the trend for Asian companies to increasingly place insurance locally is continuing.
“I would say we are in a good a place now as we have been since I came here,” he says.
Fordham, who places business through the Lloyd’s of London’s Asia platform in Singapore, points to statistics that show 65% of Asian insurance was placed in London in 2010 — around the time he arrived in the Lion City. The latest figures now show roughly half is being placed locally.
“And I would expect marine is ahead of that [in terms of placing insurance locally],” he says.
While some Asian marine interests will continue to use the London insurance markets to access capacity, he says the Asian and London marine markets are more in balance now.
Around 35% of Markel’s total hull business is now placed through Lloyd’s Asia platform.
In the Lloyd’s model, underwriters wait for business to come up to the box. Out here, we behave more like the company market; we have to go out and get the business. That way, we get a better view of the customer and the risks
Colin Fordham
He says that while there has generally been a purging of unprofitable marine business from Lloyd’s syndicates, the rate of decline in Asia has not been as strong as in London. He also suggests that the rate of more profitable business coming in is now running “neck and neck” with the amount of business leaving the market.
'Benefiting a lot'
“We are benefiting a lot from companies leaving the market,” Fordham says.
But the business style of Asian and London-based Lloyd’s platforms differs a lot, he adds, and offers the chance for better deals.
“In the Lloyd’s model, underwriters wait for business to come up to the box,” he says. “Out here, we behave more like the company market; we have to go out and get the business. That way, we get a better view of the customer and the risks.”
Markel is one of several insurance providers looking to grow its marine team. Fordham is heading up a project to build up Markel’s marine liability business in Asia.
Fordham says Markel’s approach is to give local platforms autonomy to do business, although accounting is carried out on a global profit and loss basis.
He adds that Markel is making money from marine, which he puts down to a policy of not chasing loss-making business.
“By and large we tend to lead our markets rather than follow,” he says.
