The case of a $6m crankshaft damage claim provided an object lesson in exactly what is wrong with the hull insurance market this week.
The payout was in respect of a very large ore carrier (VLOC) insured for $100m at a rate of 0.15% of the hull value.
So the gross annual premium would have been $150,000 but the net premium after brokerage shrank to maybe $120,000.
The
