
268 Operational Risk Control
This is the subject of the case study presented in section 12.7, as it appeared to myself
and Peter Chrismas, Hull Underwriter, Marine, Aviation Transport, and Sales
Division, Lloyd’s.
12.7 Operational risk with marine insurance underwriting: a
case study
One of the underwriters’ steady concerns is premiums or rates. In some markets, like
energy, rates have increased dramatically in response to losses – 1000% on some lines
in the 2000 to 2002 timeframe (see Chapter 4). Marine hull rates increased much less,
though in 2001 they did grow by 20–30%, as high value risks with ferries, oil tankers,
and container vessels, expanded. ...