Josh Jennings Discusses the State of Inland Marine Product Line

We spoke with Aspen Insurance Head of Inland Marine and Property Programs, Josh Jennings, about the state of the Inland Marine business line and emerging risks for 2025 from an industry perspective:

What types of classes are typically included in Inland Marine?

When asking that question you probably could receive a variety of responses, however, the consensus is there are four main classes: 1) Construction (builders risk/Installation); 2) Logistics (Warehouse legal and Motor truck Cargo); 3) Equipment; and 4) Related property.

Does Inland Marine have a renewal season like other business lines?

Our business doesn’t follow a traditional renewal season; however, renewal activity tends to peak beginning in Spring through to late Summer. This is primarily due to construction projects that are starting up when warmer weather occurs, which drives up demand for Builders Risk placements. Other insurers might say that their renewals take place all year long due to the particular classes they cover for insureds. Would you say the marketplace is experiencing a hardening or softening?

Beginning in 2025, the Inland Marine market was beginning to soften from the peak double-digit rate increases of the past few years. This is due to catastrophe exposures and losses that some are now starting to see hit the Property accounts of insureds, and Inland Marine rates are typically Property-driven because their risks are similar.

All in all, the market remains largely unchanging from last year, and rate reductions remain pretty rare. In fact, decreases in rates are generally limited to insureds who are highly proactive in risk management practices and have implemented new controls or procedures to improve their risk profile. Have you seen changes in policy wording and/or terms and conditions?

Wind / hail percentage deductibles are becoming increasingly common across many regions in the U.S., reflecting a shift in risk-sharing practices. In years past, this was mainly associated with risks located in the southern great plains or coastal. Now, you’re seeing these percentage deductibles in a lot of placements. In fact, a couple of years ago, to help the rapidly growing renewable industry, Aspen partnered with kWh Analytics on a new product to provide coverage against physical damage, (e.g. wind, hail, natural catastrophes) for solar and other renewable projects.

Do you see other emerging issues?

Most Inland Marine forms currently are silent on Cyber exposures and how coverage would/if apply. However, as technology continues to advance and these risks become more prevalent, the admitted market is expected to provide greater clarity on coverage terms while also introducing more defined limits on Cyber-related coverage.

Does AI present an opportunity or a challenge for Inland Marine?

The digital transformation presents the industry with fantastic opportunity, however, there are still challenges that need to be addressed. Specifically for Inland Marine, the challenge for a lot of carriers will be digesting the complexity of risks, the diverse exposures and the variability in covered assets.

Artificial Intelligence (AI) can be a great tool to hunt, gather and organize much of the process but, at the end of the day, you are still going to want your underwriters making high quality decisions on these complex risks.

Any other challenges that you see facing the industry?

There remains a sizeable talent gap in specialty underwriting, particularly within Inland Marine. This is where technology (e.g. AI, automation) can help by enabling underwriters to be more productive, so they can focus more of their time on analyzing the data. Technology can streamline processes, but there are still risks, and you need to be able to create a balance between employing AI and automation and that real-time human experience.

Insurers should be telling their story, and the positive and significant role insurance has played, and continues to play, to society’s betterment. Insurance can be rewarding, interesting and meaningful, and uses much of the same skill sets the more “exciting” businesses require. I think the industry could do a better job of identifying those competences and attributes and investing in a message that communicates the benefits of an insurance career.

Committing to changing perceptions, rethinking the skills needed, expanding the talent pool and upskilling existing talent – these all can be the building blocks that lead to attracting and retaining long-term expertise and innovation in an increasingly challenging marketplace.

Learn more about Aspen’s Inland Marine products. 

Read about the state of the Marine market.