“We’re very significant players in all three sectors,” says Eldridge. “across the country , we are the largest from a staff count and premium handled perspective. Because of our size and volume, we have good feel and understanding for what is happening in Canada and globally.”
Aside from the challenges faced by investors from low interest rate returns, Eldridge points to a common threat faced by insurers in Canada and globally.
“Capacity is the single biggest issue we have in the marine sector,” he says. “Specifically, excess capacity versus a shortage of capacity. There are constantly new players signing up and existing players expanding their capacity; and because of that there is an awful lot of competition for business.”
The tight economy continues to plague the marine industry – and by extension those insurance carriers. Compounded by the ongoing uncertainty on the political world stage, says Eldridge, that contributes to the reluctance of investors to put their money into shipping.
“The economy at large continues to be a major factor in decisions being taken by business leaders, influencing shippers, receivers and ship owners,” he says. “They are reluctant to spend money because of the uncertainty globally – both financially and in the political sphere – which creates an element of doubt and uncertainty.”
Marsh does a lot of business with the large commodity players including mining and gas , and in each of those sectors, commodities shipments and values are down. (continued.)