In U.S. marine cargo insurance, it’s common for more than one insurer to underwrite a single policy. You’ll hear this called a market or subscription (quota-share) placement. Multiple insurers each take a percentage of the risk. Knowing how that shared responsibility plays out in a claim can save time—and headaches—when losses are high.

What Is a Market (Subscription) Cargo Policy?

A market cargo policy in the U.S. typically features:

One Lead (or Handling) Insurer — designated in the policy or binding documents to handle claims day-to-day. Some policies include a claims control or lead-binds/settlement-authority clause (sometimes “claims agreement party”) allowing this insurer to settle claims up to specified limits on behalf of the others.

Additional Participating (Following) Underwriters — carriers that insure the remaining percentage(s) of the risk. Depending on the wording, they may agree to be bound by the lead’s decision or reserve rights to concur on larger or complex claims.

Note: Whether followers must accept the lead’s decision is a wording issue in the U.S. If there’s no explicit settlement-authority clause, participating underwriters may retain the right to approve significant settlements.

How Claims Typically Run in the U.S.

When a claim arises:

• The lead/handling insurer coordinates: confirms coverage, oversees the investigation, and evaluates liability and quantum (value of loss).
  
• Followers’ involvement depends on the contract:
  
  • If the policy grants settlement authority, the lead can settle within that authority without separate approvals.
    
  • If not, followers may review and concur on larger, complex, or unusual claims before payment.
    
• The broker keeps the train on the tracks: gathers documentation, relays updates, and coordinates each carrier’s share of any settlement.
  
• Payments are typically funded by each market share (often via the broker). Lloyd’s Central Settlement may be used where London market capacity is involved, so timelines can vary by carrier and market.
  

This setup aims to balance speed (via a designated handler) with fairness (honoring each carrier’s share and rights).

What Does the Claims Adjuster Do?

As an independent loss adjuster, Arete Adjusting is engaged to:

• Investigate the loss and determine cause (causation) and amount (quantum).
  
• Report findings to the lead/handling insurer (or designated claims administrator/TPA/MGA).
  
• Support coverage and valuation analysis with evidence, salvage/repair info, and recommended settlement ranges.
  
• Align documentation with the market structure (policy numbers, participating underwriter shares, and any special settlement authority noted in the placement) to facilitate smooth settlement.
  

Arete doesn’t negotiate separately with each participating underwriter. Its impartial, technically solid report equips the lead—and any reviewing followers—to make a defensible, timely decision.

Quick terminology sanity-check

• Loss adjuster (Arete): investigates and values the claim.
  
• Surveyor: performs inspections; their findings feed into the adjuster’s analysis.
  
• Average adjuster: handles General Average (declared by the shipowner). Cargo interests may need to post GA security, which is often provided via cargo insurance.
  

Why This Matters to Cargo Owners and Brokers

• Speed depends on authority + clarity: Claims move faster when the policy grants settlement authority and the adjuster’s report is tight, complete, and evidence-rich.
  
• Payment timing varies: With multiple insurers funding their own shares (or via Lloyd’s central settlement), the broker’s coordination and each carrier’s process affect when money hits the account.
  
• Documentation wins the day: Clear causation, defensible valuation, and well-organized support shorten reviews—especially when followers retain concurrence rights.
  

Final Thought: One Loss, Many Hands

In a U.S. market cargo policy, responsibility is shared across carriers, but claims handling is usually centralized through a designated lead or handler. When everyone is responsible for a slice, clear facts and clean communication keep the process moving.

Arete Adjusting brings order to multi-party claims—translating technical loss details into a report the market can rely on, so cargo owners, brokers, and insurers get to resolution without the runaround. Contact your Arete representative for a more thorough understanding of market policies and cargo insurance.