Subscribe to our Mailing Lists (It's free!)
Thursday, May 29, 2025
SAFETY4SEA
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    Yet another commercial vessel gets attacked in the Red Sea

    Russian seafarers evacuated from oil tanker in Yemen

    Dutch Safety Board investigation

    Dutch Safety Board investigation finds SAR response gaps

    merchant fleet NATO

    New report reveals merchant fleets shrink across NATO nations

    Dryad Global Black Sea security

    Dryad Global: Attacks on Ukraine’s ports likely to escalate

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    culture of respect

    Addressing crew shortage: Establish clear expectations for respectful and professional behaviour

    Book Review: Building leaders the MMMA way

    Book Review: How to avoid a climate disaster

    mental health

    MOL takes step to enhance the mental health of its crew

    Book Review: Building leaders the MMMA way

    Book Review: The Art Of War

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    17 lng carriers

    Korean yard cuts steel for seventeen LNG carriers

    MoU hydrogen

    New MoU signed to advance hydrogen transportation

    SGS completes wind propulsion trials with promising results

    SGS completes wind propulsion trials with promising results

    COSCO

    COSCO adds dual-fuel car carrier featuring solar panels to its fleet

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    digitalization

    New dataset aligned with IMO Compendium post-FAL 49

    Crew connectivity a ‘powerful tool’ requiring strategic deployment

    Crew connectivity a ‘powerful tool’ requiring strategic deployment

    New deal sees autonomous navigation systems for two vessels

    New deal sees autonomous navigation systems for two vessels

    cyber security

    CyberOwl raises alarm on phising and malware campaign

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    NCL Salten

    Inspection onboard NCL Salten reveals deficiencies

    India monsoon

    India: Mooring and anchoring during the Monsoon season

    hull

    Libya mandates underwater hull inspections

    Indian Ocean MoU Annual report

    Indian Ocean MoU PSC Annual Report 2024

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    black sea

    EU develops strategy to boost Black Sea security and stability

    green shipping

    Chinese and EU ports join forces for three green shipping corridors

    Three companies merge to form InterMaritime Shipmanagement

    Major industry players announce stock-for-stock merger

    Trump tariffs

    US trade court blocks and rules Trump’s tariffs as unlawful

  • Columns
    wellness crew

    A thriving crew means a thriving industry

    seafarers

    Addressing challenges for a safer and more efficient maritime future

    Philippines crew management

    Our people are our greatest asset

    Trending Tags

    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    Yet another commercial vessel gets attacked in the Red Sea

    Russian seafarers evacuated from oil tanker in Yemen

    Dutch Safety Board investigation

    Dutch Safety Board investigation finds SAR response gaps

    merchant fleet NATO

    New report reveals merchant fleets shrink across NATO nations

    Dryad Global Black Sea security

    Dryad Global: Attacks on Ukraine’s ports likely to escalate

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    culture of respect

    Addressing crew shortage: Establish clear expectations for respectful and professional behaviour

    Book Review: Building leaders the MMMA way

    Book Review: How to avoid a climate disaster

    mental health

    MOL takes step to enhance the mental health of its crew

    Book Review: Building leaders the MMMA way

    Book Review: The Art Of War

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    17 lng carriers

    Korean yard cuts steel for seventeen LNG carriers

    MoU hydrogen

    New MoU signed to advance hydrogen transportation

    SGS completes wind propulsion trials with promising results

    SGS completes wind propulsion trials with promising results

    COSCO

    COSCO adds dual-fuel car carrier featuring solar panels to its fleet

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    digitalization

    New dataset aligned with IMO Compendium post-FAL 49

    Crew connectivity a ‘powerful tool’ requiring strategic deployment

    Crew connectivity a ‘powerful tool’ requiring strategic deployment

    New deal sees autonomous navigation systems for two vessels

    New deal sees autonomous navigation systems for two vessels

    cyber security

    CyberOwl raises alarm on phising and malware campaign

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    NCL Salten

    Inspection onboard NCL Salten reveals deficiencies

    India monsoon

    India: Mooring and anchoring during the Monsoon season

    hull

    Libya mandates underwater hull inspections

    Indian Ocean MoU Annual report

    Indian Ocean MoU PSC Annual Report 2024

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    black sea

    EU develops strategy to boost Black Sea security and stability

    green shipping

    Chinese and EU ports join forces for three green shipping corridors

    Three companies merge to form InterMaritime Shipmanagement

    Major industry players announce stock-for-stock merger

    Trump tariffs

    US trade court blocks and rules Trump’s tariffs as unlawful

  • Columns
    wellness crew

    A thriving crew means a thriving industry

    seafarers

    Addressing challenges for a safer and more efficient maritime future

    Philippines crew management

    Our people are our greatest asset

    Trending Tags

    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
SAFETY4SEA

Allianz: Key trends driving marine insurance claims activity

by The Editorial Team
November 22, 2022
in Loss Prevention
UK ports angered by the delayed import checks

Credits: Shutterstock

FacebookTwitterEmailLinkedin

Fire and explosion incidents cause the most expensive insurance claims in the marine industry, while at a time of rising exposures and inflation, cargo damage is the most frequent cause of loss, according to Allianz Global Corporate & Specialty (AGCS) following analysis of more than 240,000 marine insurance industry claims worldwide between January 2017 and December 2021, worth approximately €9.2bn in value.

Inflation is another key concern for marine insurers and their policyholders as recent increases in the values of ships and cargos mean losses and repairs are becoming more expensive when things go wrong.

The number of fires on board large vessels has increased significantly in recent years, with a string of incidents involving cargo, which can easily lead to the total loss of a vessel or environmental damage,

says Régis Broudin, Global Head of Marine Claims at AGCS.

RelatedNews

Dutch Safety Board investigation finds SAR response gaps

Third fatality confirmed after fire on oil platform off Angola

At the same time, the shipping sector is also having to deal with many other challenges including a growing number of disruptive scenarios, supply chain issues, inflation, time-pressured crew members and employees, increasing losses and damages from extreme weather events, implementing new low-carbon technology and fuels, as well as Russia’s invasion of Ukraine.

At a glance

  • Fire, collision and sinking, and damaged cargo are the top causes of marine insurance losses by value, according to Allianz Global Corporate & Specialty’s analysis of more than 240,000 claims worth €9.2bn in value.
  • Inflation is compounding existing trends driving higher claims severity. Soaring prices for steel and spare parts and rising labor costs are impacting hull repair and machinery breakdown claims.
  • Supply chain issues continue to impact claims, as does climate change through extreme weather events and new exposures linked to the net-zero transition.

Allianz: Key trends driving marine insurance claims activity

Fires accounted for 18% of the value of marine claims analyzed (equivalent to around €1.65bn) compared with 13% for a five-year period ending July 2018. A contributing factor to this increase of fire risk on board vessels is often mis-declared/non-declaration (of) dangerous cargos, while a recent increase in engine room fires may reveal some underlying risk around crew competencies. The potential dangers that the transportation of lithium-ion batteries on vessels pose only add to these concerns, with AGCS having already seen a number of incidents.

Inflation driving up the values of vessels, cargo and repairs in a time of growing exposures

With many countries seeing rates at or around 10%, inflation is compounding existing trends driving higher claims severity. The rising prices of steel, spare parts and labor are all factors in the increasing cost of hull repair and machinery breakdown claims.

In addition, the value of both vessels and cargo has been increasing at a time of growing exposures associated with bigger ships, the largest of which can carry 20,000 containers at one time. The combined value of the global merchant fleet increased 26% to $1.2trn in 2021, while the average value of container shipments has also been rising with more high-value goods such as electronics and pharmaceuticals. It is not unusual to see one container valued at $50mn or more for high-value pharmaceuticals.

Damaged goods, including cargo, is the top cause of marine insurance claims by frequency, and the third largest by value, the AGCS analysis shows. The most common claims are physical damage, typically from poor handling, storage and packing. However, recent years have also seen a number of high-value theft and temperature variation claims – the latter can particularly impact pharmaceuticals. Theft is the third most frequent cause of claims with criminals targeting consumer electronics and high-value commodities such as copper. Cargo is typically stolen from ports, warehouses or during transits. The recent boom in container shipping has also affected cargo claims with a global shortage having resulted in substandard and damaged containers being brought back into use resulting in losses.

The risk of theft and damage to high-value cargos needs to be addressed with additional risk mitigation measures, such as GPS trackers and sensors that provide real-time monitoring on position, temperature, moisture shock, and light and door openings, for example,

says Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS.

“At the same time cargo interests need to keep a close eye on insured values. Clients may need to adjust their insurance and policy limits, or risk being underinsured – we have already seen claims for high value container cargos where the cargo interest was underinsured by as much as $20mn.”

AGCS also identifies a number of risk trends in the analysis that are likely to impact loss activity in the marine sector – both today and in the future:

  • Sources of disruption continue to increase: Recent years have seen a number of maritime incidents, natural catastrophes, cyber-attacks and the Covid-19 pandemic cause major delays to shipping and ports. Further disruption has also been caused by congestion, labor shortages and constrained container capacity. There are also greater concentrations of cargo risk on board large container vessels and in major ports, so any incident has the potential to simultaneously affect large volumes of cargo and companies.
  • Commercial pressures are already a contributing factor in many losses that have resulted from poor decision-making. With the pressure on vessels and crew currently high, the reality is that some may be tempted to ignore issues or take shortcuts, which could result in losses.
  • Climate change is increasingly affecting marine claims: Natural catastrophes is already the fifth biggest cause of marine insurance claims, by frequency and severity according to AGCS analysis. Extreme weather was a contributing factor in at least 25% of the 54 total vessel losses reported in 2021 alone, while drought in Europe during 2022 again caused major disruption to shipping on the Rhine. In the US, it dropped inland waterways around the Mississippi River to levels not seen for decades, impacting global transportation of crops such as grain.
  • A more sustainable, greener approach in shipping sector is needed, but comes with risks: Efforts to decarbonize the shipping industry, which is a major contributor to global greenhouse gas emissions (GHGs) will also impact claims going forward. Reducing GHGs requires the shipping industry to develop more sustainable forms of propulsion and vessel design and use alternative fuels. As much as the introduction of new technology and working practices is needed to move to a low-carbon world, it can result in unexpected consequences – insurers have already seen a number of machinery breakdown and contaminated fuel claims related to the introduction of low sulfur fuel oil in recent years as part of the move to cut sulfur oxide emissions. Machinery breakdown is already the fourth largest cause of claims by frequency and value.
  • Impact of Russia’s invasion of Ukraine: The shipping industry has been affected with the loss of life and vessels in the Black Sea, trapped vessels in blocked Ukrainian harbors and the growing burden of sanctions. Although the signing of the ‘Black Sea Grain’ Initiative in July 2022 enabled some vessels trapped in ports to move out of the conflict zone others remain. The full value of these trapped vessels is unclear, but industry reports have estimated it could be as much as $1bn. Under some marine hull and cargo insurance policies an insured party may be able to claim for a total loss after a specific time has passed since the vessel/cargo became blocked or trapped.

 

Allianz: Key trends driving marine insurance claims activityAllianz: Key trends driving marine insurance claims activity
Allianz: Key trends driving marine insurance claims activityAllianz: Key trends driving marine insurance claims activity
Tags: Allianzcargo damageexplosionfire onboardloss preventionmarine insurancemaritime claimstrends
Previous Post

Bulker collides with containership at Bosphorus

Next Post

Turkey: Changes in requirements for laden oil tankers to evidence P&I cover

Related News

Vessel grounds in harbour
Security

Allianz: Key risks and considerations surrounding the shadow fleet

May 28, 2025
tanker
Shipping

BIMCO oil tanker outlook: Uncertainty shakes markets

May 28, 2025
The industry aims to end China’s monopoly on container production
Shipping

How the US – China tariffs shape the global trade

May 27, 2025
MSC Elsa 3
Accidents

MSC begins cargo recovery from sunken ship off Indian Coast

May 27, 2025
explosion waste vessel
Accidents

Explosion onboard waste disposal vessel claims one life

May 27, 2025
Allianz
Safety

Allianz Safety and Shipping Review 2025

May 27, 2025

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Explore more

No Result
View All Result
MARITIME EVENTS

Explore

  • Safety
  • SEAFiT
  • Green
  • Smart
  • Risk
  • Others
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

Useful Links

  • About
  • Disclaimer
  • Editorial Policies
  • Advertising
  • Content Marketing
  • Contact

© 2025 SAFETY4SEA

No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA

Manage your privacy
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Manage options
{title} {title} {title}
No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA