Blog: Commoditisation of cargo insurance

Having found Angela McCluskie’s blog on marine cargo insurance interesting and thought-provoking, John Potter shares his thoughts on how the market may develop.

Viewed in a different light, the commoditisation of cargo insurance might be seen as an inevitable consequence of falling rates over several years of the soft market. This coupled with commission rates that are greater than they should be.

But it doesn’t necessarily mean that the cargo market will all succumb to commoditisation.

The commoditisation development is a perfectly good business tool for the run of the mill cargo risk, most of which don’t require any bespoke broking or underwriting.