13 Cargo/inland marine The cargo stock throughput market has been The cargo market sustained some losses Rate trends more balanced than the distressed property from Hurricane Ian but these were not on • Rates continue to trend 昀氀at to +5% with sector. This is evidenced by the general the same scale as the property market. losses driving higher increases. availability of capacity and robust policy terms Furthermore, it will not be subject to the and conditions such as: same reinsurance pressures but there will • We will keep a watching eye on whether still be some level of pain. London market treaty reinsurance has an impact on cargo reinsurance is often purchased rates as we move through Q1 2023. 1 No push for any percentage as part of a composite treaty that could Considerations/conditions catastrophe deductibles include other lines of coverage such as political violence or war risk. These lines • Capacity remains robust. have sustained signi昀椀cant losses over the • Stock throughput continues to be a viable Per location policy limits past year and, as a result, certain writers of option for inventory sensitive accounts 2 (with a location typically being any one building cargo risk in London may well experience insured on a selling price valuation. with 100 feet separation from one another) treaty reinsurance increases. However, the drivers behind such increases are • We continue to see more exclusions not necessarily cargo related. We may related to the Russian invasion of therefore see some of this rate pressure Ukraine as well as a new “Five Powers 3 Broad duration of cover clause translate to the direct cargo markets. If Clause” that has been driven by reinsurance requirements. This clause there is to be a trickle-down e昀昀ect, we will be in a better position to ascertain its relates to an immediate cessation of impact at the end of Q1 2023. coverage as it relates to war risk if a Control of damaged goods clause loss occurs from the outbreak of war 4 Classes that remain challenged include (whether there is a declaration of war or manufacturing, agribusiness/soft not) between any of these countries: commodities, food and beverage, food – United Kingdom processing, and any organization that has – United States of America 5 Buyer’s / seller's interest clauses a combination of 昀椀rst-party product in – France storage/transit combined with high-hazard – The Russian Federation catastrophe exposures. – The People’s Republic of China