US domestic line premiums increased by 15% in 2021 after falling by 2% in 2020, according to a report on Thursday from AM Best & Co.
Inland marine direct premiums that are written increased by an average of 8% per year from 2011 to 2019 before pandemic restrictions severely restricted activities such as travel, construction and transportation, said AM Best.
The recovery is expected to continue.
“If the U.S. economy avoids a prolonged recession, the inland marine premium should continue to grow,” Christopher Graham, senior industrial analyst, industry researcher and analyst, for AM Best, said in a statement with the report.
The internal marine sector̵7;s loss ratio also improved by about 15 percentage points to 49.5% by 2021, “in line with the pre-pandemic loss ratio”, the report said.
The travel insurance sub-segment of inland marine insurance saw the biggest pandemic challenges when business travel plans and holidays were interrupted, which triggered unforeseen payments. Meanwhile, new travel plans were put on hold, which limited the purchase of new insurance policies.
According to the Transportation Security Administration, the volume of travelers processed by the agency decreased by more than 90% in April and May 2020, the first two full months after the pandemic began in the United States, compared to the same time frame in 2019.
Inland shipping insurance can include a range of cargo coverage, communications equipment, event cancellations, jet skis and even pet health insurance.