The U.S. Ocean-Marine insurance market is “certainly not hard,”says Bob Gallagher, president of International Marine Underwriters,part of the OneBeacon Insurance Group. He says the market is flatto “slightly off.”

“New conditions are not tightening,” Gallagher adds, and newcompetition from overseas is adding capacity to an alreadycapacity-drenched insurance sector.

Rate increases are “spotty,” with corrections to insureds withbad records or those that have experienced loss, such as marinasaffected by the severe weather seen in the United States in 2011,he adds.

Economic conditions have led to a drop in the amount beingshipped. “Values are down,” says Gallagher.

These circumstances have led insurers to become creative, headds: “You have to be innovative in order to grow—broaden coveragewith companion policies, like auto.”

Coverage for yachts, specifically, has taken a downturn, asfewer people can afford them and credit to finance them is hard tocome by.

Internationally, Donald Harrell, senior vice president of marinefor Liberty International Underwriters, says prices are stable,with some slight increases: “The impacts of [natural catastrophessuch as the earthquake and tsunami in Japan] have yet to showimpacts in [carriers’] balance sheets.”

Nigel Fitzgerald, marine and energy practice leader for Crum& Forster, says the market is “inconsistent.” C&F has beenfocused on “segments within segments” of the market.

“We’re not trying to be everything to everybody,” he adds.