The deterioration of the direct insurers results for 2000 is even more severe, it is widespread and results from the ending of a turndown cycle which started in 1995 and ending in 2000. During this cycle the worldwide marine insurance market turnover was reduced from 16,8 billion $ to 11,6 billion $, decreasing by nearly 31 % due to premium rate cut down only.

The hardening of the market which started smoothly early 2001 did not allow for a come back to profitable technical results, and the counter perform
 

On several occasions European shipowners warned the European Commission about the level of war risks premiums, invoiced in a beautiful unanimity by the various markets.

More generally speaking for corporate insurance, risk management associations such as AMRAE in France, have threatened to create their own insurance structure to avoid the amplitude of cycles known on the traditional market.

On their side direct insurers recall the absolute need for an improvement of their results, otherwise the top management of some insurance companies may decide to stop underwriting corporate insurance policies to focus on more profitable branches of their activity, such as life insurance and private insurance.

The hardening of the market is a long going process, which will be undoubtedly reinforced in the coming months by the withdrawal of some re-insurers and insurers. Market overcapacity will end soon, and if the direct insurance market is still adapted for the coverage of corporate insurance, which has to be proven, three structure modification can be anticipated:

• The return to co-insurance practices: the trust of insurers towards their re-insurers has been affected by the 11th of September 2001 events, the former will be inclined to determine their underwriting liabilities in regards to their net capacities and no longer in regards to the re-insurance capacity available. Furthermore, the facultative re-insurance capacity (re-insurance underwritten on a case by case basis by an insurer for a single policy) is very lean. Thus one can expect a general decrease of the shares underwritten on each policy. To cover 100 % of the same risk more insurers will be needed.
• The achievement of market internationalisation: the partnership between market players has been damaged by the upheaval of the market, and one can anticipate that the domestic solidarity will disappear and be replaced by a search for financial optimisation on the worldwide market. Some transfers from domestic markets to international markets of significant contracts already occurred during the 1st of January 2002 renewals.
• The search for alternative risk financing tools: the strategies of alternative risk financing becomes pertinent with a tough market situation. One can expect that those corporations not yet having re-insurance or insurance, will pay attention to these alternative tools. More generally speaking the willingness of the big corporations to mutualise their risks to escape from an erratic market, should not be minimise