Market Conditions
The Hull & Machinery insurance market has seen measured rate adjustments through 2024, driven by increased repair costs, inflation in shipyard capacity and a rise in machinery damage frequency across ageing fleets.
Deductible Structures
Underwriters are increasingly differentiating between owned and chartered tonnage, with higher deductibles applied to vessels over 15 years of age. Fleet operators should review their deductible levels annually against claims frequency data.
Classification and Condition Surveys
Maintaining class and addressing survey recommendations promptly remains critical. Underwriters now routinely request access to classification records and condition survey reports as part of the renewal process.
Recommendations
- Review your fleet's claims history over a rolling five-year period
- Engage with surveyors early before renewal negotiations
- Consider loss of hire exposure alongside H&M cover
- Evaluate the cost-benefit of higher deductibles against premium savings