Marine insurance rates drop to seven-year low; Limits rise as market entrants vie for business.(Spotlight: Midyear Market Report)

Byline: GLORIA GONZALEZ

Marine buyers are benefiting from abundant capacity that is spurring insurers to make hefty rate reductions, particularly on cargo and certain hull risks.

Double-digit premium rate decreases are common in most segments of the market, although cargo business is particularly competitive with brokers reporting reductions of up to 60% as new insurers enter the market.

Reductions of 50% to 60% are common for brown-water hull rates, while blue-water hull risks have experienced smaller declines due to recent losses and reduced capacity, brokers say.

"We're almost back to pre-9/11 rates,'' said Jane A. Keegan, enterprise …