LINE OF
BUSINESS
OVERVIEW
2022 Annual Report
BARENTS RE REINSURANCE COMPANY, INC.
BARENTS RE REINSURANCE COMPANY, INC.
LINE OF
BUSINESS
OVERVIEW
MARINE CARGO
LINE OF
BUSINESS
OVERVIEWS
MARINE CARGO
Barents Re continues to employ a rigorous approach to technical underwriting to maintain profitability while remaining competitive. Coverage restrictions for cyber and communicable diseasesare maintained.
An increasing focus on ESG has shifted the appetite of much of the London market away from fossil fuels such as coal; meanwhile, the push for carbon-neutral shipping continues. As a result, we have seen more companies opting to use LNG-fuelled vessels or hydrofoils to reduce emissions and offer a carbon-neutral option to their clients. We also see increased LNG/LPG demand.
The possibility of large losses due to the misdeclaration of cargo remains an issue, with this being a leading cause of fire onboard vessels. The fire onboard the Felicity Ace Ro-Ro vessel in February 2022 exposed the increased probability of large losses occurring on motor vehicle accounts. Fundamentally due to the shift towards lithium-ion batteries used in electric cars, emphasising the evolving challenges that the marine cargo industry faces given the transition from combustion engines to electric powered vehicles.
The outlook for 2023 is positive, despite increased capacity in the market, Barents Re is focusing on new opportunities alongside the current Marine Cargo book, specifically Specie & Fine Art to further diversify the portfolio.
