Subscribe to our Mailing Lists (It's free!)
Wednesday, June 7, 2023
SAFETY4SEA
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    NTSB Investigation: Officers’ distraction causes vessels to collide

    NTSB Investigation: Officers’ distraction causes vessels to collide

    suez canal

    Tanker breaks down in Suez Canal causing brief disruption

    NAPA, Simwave to improve access to stability training for seafarers

    NAPA, Simwave to improve access to stability training for seafarers

    Lessons learned: Always ensure you have an accurate picture of the traffic situation before departure

    Lessons learned: Hand injury while using manual torque tool

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    Book Review: A role model for ship managers

    Book review: The politics of sustainability in the Arctic

    contemplation as a spiritual practice

    Contemplation: Directing the mind towards what’s important

    power of hug

    The power of hugging: How it affects our health

    Impostor Syndrome

    Mental Health Focus: How to deal with Impostor Syndrome

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    shipping eu ets

    DNV: How shipowners can meet EEXI compliancy when essential components are unavailable

    powercell hydrogen fuel cell

    ABS publishes requirements for hydrogen-fueled vessels

    reducing shipping emissions

    Intercargo: GHG regulations should regard the entire supply chain

    LPG Market Outlook

    Avance Gas signs contract for for two LPG carriers

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    DNV Maritime Cyber Priority 2023: Shipping faces 5 major cyber security challenges

    DNV Maritime Cyber Priority 2023: Shipping faces 5 major cyber security challenges

    New Mission to Seafarers app strengthens welfare support

    New Mission to Seafarers app strengthens welfare support

    ABS awards AIP to SHI for structural health monitoring system

    ABS awards AIP to SHI for structural health monitoring system

    guidelines for data ownership

    ZeroNorth and Sedna to use email data for greener global trade

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
    AMSA bans second vessel in a week

    AMSA bans second vessel in a week

    Ship detentions in Paris MoU in February 2021

    AMSA bans bulk carrier Babuza Wisdom for 90 days

    tanker arrested in singapore

    AMSA convicts master and company after pilot ladder injury

    amsa planned maintenance fic

    OCIMF Annual Report 2023: Key amendments and additions under SIRE 2.0

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Reports
    • Shipping
    • Sustainability
    • Videos
    MOL appoints its first female captain for car carrier

    MOL appoints its first female captain for car carrier

    How to break patterns that can result to bad habits

    How to break patterns that can result to bad habits

    ONE takes delivery of massive 24,000 TEU container ship

    ONE takes delivery of massive 24,000 TEU container ship

    Nor-Shipping supporting profitable #PartnerShips

    Nor-Shipping supporting profitable #PartnerShips

  • Columns
    Ship recycling: A solution for plastic pollution and environmental protection

    Ship recycling: A solution for plastic pollution and environmental protection

    Back To The Future: How Rotor Sails are now a credible option to tackle climate challenge

    Back To The Future: How Rotor Sails are now a credible option to tackle climate challenge

    eu ets maritime

    The EU’s objectives for sustainable shipping

    Trending Tags

    • Book Review
    • Career Paths
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Wellness Corner
  • Events
  • Plus
No Result
View All Result
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    NTSB Investigation: Officers’ distraction causes vessels to collide

    NTSB Investigation: Officers’ distraction causes vessels to collide

    suez canal

    Tanker breaks down in Suez Canal causing brief disruption

    NAPA, Simwave to improve access to stability training for seafarers

    NAPA, Simwave to improve access to stability training for seafarers

    Lessons learned: Always ensure you have an accurate picture of the traffic situation before departure

    Lessons learned: Hand injury while using manual torque tool

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    Book Review: A role model for ship managers

    Book review: The politics of sustainability in the Arctic

    contemplation as a spiritual practice

    Contemplation: Directing the mind towards what’s important

    power of hug

    The power of hugging: How it affects our health

    Impostor Syndrome

    Mental Health Focus: How to deal with Impostor Syndrome

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    shipping eu ets

    DNV: How shipowners can meet EEXI compliancy when essential components are unavailable

    powercell hydrogen fuel cell

    ABS publishes requirements for hydrogen-fueled vessels

    reducing shipping emissions

    Intercargo: GHG regulations should regard the entire supply chain

    LPG Market Outlook

    Avance Gas signs contract for for two LPG carriers

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    DNV Maritime Cyber Priority 2023: Shipping faces 5 major cyber security challenges

    DNV Maritime Cyber Priority 2023: Shipping faces 5 major cyber security challenges

    New Mission to Seafarers app strengthens welfare support

    New Mission to Seafarers app strengthens welfare support

    ABS awards AIP to SHI for structural health monitoring system

    ABS awards AIP to SHI for structural health monitoring system

    guidelines for data ownership

    ZeroNorth and Sedna to use email data for greener global trade

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
    AMSA bans second vessel in a week

    AMSA bans second vessel in a week

    Ship detentions in Paris MoU in February 2021

    AMSA bans bulk carrier Babuza Wisdom for 90 days

    tanker arrested in singapore

    AMSA convicts master and company after pilot ladder injury

    amsa planned maintenance fic

    OCIMF Annual Report 2023: Key amendments and additions under SIRE 2.0

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Reports
    • Shipping
    • Sustainability
    • Videos
    MOL appoints its first female captain for car carrier

    MOL appoints its first female captain for car carrier

    How to break patterns that can result to bad habits

    How to break patterns that can result to bad habits

    ONE takes delivery of massive 24,000 TEU container ship

    ONE takes delivery of massive 24,000 TEU container ship

    Nor-Shipping supporting profitable #PartnerShips

    Nor-Shipping supporting profitable #PartnerShips

  • Columns
    Ship recycling: A solution for plastic pollution and environmental protection

    Ship recycling: A solution for plastic pollution and environmental protection

    Back To The Future: How Rotor Sails are now a credible option to tackle climate challenge

    Back To The Future: How Rotor Sails are now a credible option to tackle climate challenge

    eu ets maritime

    The EU’s objectives for sustainable shipping

    Trending Tags

    • Book Review
    • Career Paths
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Wellness Corner
  • Events
  • Plus
No Result
View All Result
SAFETY4SEA

IUMI: Global Marine Insurance Report 2022

by The Editorial Team
September 20, 2022
in Shipping
northstandard
FacebookTwitterEmailLinkedin

The International Union of Marine Insurance (IUMI) presented its analysis of the 2021 marine insurance market trends, showing that global marine insurance premiums were up 6.4% on 2020, rising to USD 33 bn in 2021.

According to yhe IUMI Global Marine Insurance Report, lifted by a combination of increased global trade volumes, a stronger US dollar, increased offshore activity and higher vessel values, premiums for cargo, hull, offshore energy and marine liability rose in 2021. Insurers in Europe and Asia in particular saw premium growth.

Regionally, global income was split:

  • Europe 47.2%
  • Asia/Pacific 29.3%
  • Latin America 10.3%
  • North America 7.7%
  • Other 5.5%.

By line of business, cargo continued to represent the largest share with 57.4% in 2021, hull 23.5%, offshore energy 11.8% and marine liability (excluding IGP&I) 7.3%.

RelatedNews

ABS publishes requirements for hydrogen-fueled vessels

DNV Maritime Cyber Priority 2023: Shipping faces 5 major cyber security challenges

Building on the gains made in 2020, 2021 was another positive year for marine insurers. It was the year when global trade saw a tentative recovery, absolute premiums rose, claims impact was benign, and as a result loss ratios improved

Vice-Chair of IUMI’s Facts & Figures Committee, Astrid Seltmann explained.

However, Astrid Seltmann warned that “this position is tempered by the economic uncertainties the world is facing today. We are reporting this data at a time when several shocks have hit a world economy already weakened by the pandemic. There is no end in sight for the war in Ukraine, soaring global energy costs and inflation, a gloomy outlook for trade and the possibility of further climate and pandemic related disruptions.”   

Offshore Energy

Global premiums from the offshore energy sector continued to rise in 2021, reaching USD 3.9 bn, representing an 6.9% increase on 2020. This is a second straight year of rises, following a six-year period of declines (2014-2019). The demand for offshore energy insurance typically tracks oil prices as projects become viable.

Historically, there is an 18-month time lag between improved oil prices and authorised offshore expenditure and unit reactivation. Oil prices remain high, but volatile.

Lloyd’s of London and the International Underwriting Association (IUA) continue to command the majority of the market, with a respective 33.2% and 32.1% market share.

In 2021 claims were lower than premiums collected. However, a shadow still hangs over the offshore energy market in the form of potentially significant unquantified losses still to arise from 2019.

Cargo

The global premium base for the cargo market for 2021 reached USD 18.9 bn, up 9.9% on the back of a stronger dollar and increased global trade volumes. Cargo premium is a reflection of the value of goods transported and global trade volumes.

However, in July 2022 the International Monetary Fund released a pessimistic forecast predicting global economic growth to slow from 6.1 percent last year to 3.2 percent in 2022.

Loss ratios in most markets continued to improve as a result of increased premium volume in combination with recent benign claims impact.,. For Europe, the gross loss ratio for underwriting year 2021 is estimated to end at 50%, while other regions reported the following 2021 accounting year loss ratios:

  • US: 41% (incurred claims)
  • Asia: 45% (paid claims only)
  • Latin America: 43% (paid claims).

A return to pre-Covid activity in 2022 is likely to increase the impact of claims on underwriting performance.

Cargo insurers continue to face persistent challenges including rising cases of onboard fires, mis-declared cargoes, worsening severe weather conditions including stronger winds and waves, floods and wildfires. With the increased value accumulation on ever larger vessels and single port sites, the risk of large event losses continues to grow.

Ocean Hull

Global premiums relating to the ocean hull sector increased in 2021 by 4.1% to USD7.8 bn. There was continued strong growth in the Nordic region as well as China, but much weaker in the UK (Lloyd’s) market where the decline of recent years continued.

The overall value of insured vessels rose significantly in 2021, driven primarily by the large increase in containership prices which were up over 35%. Dry bulk and general cargo vessel values also saw gains in 2021, but all other segments were down.

After a subdued year for claims in 2020 when shipping activity, particularly in the high value cruise sector decreased, 2021 saw an uptick of Hull & Machinery claims. However, claims remain low. Total losses stood at 0.06% and partial claims at 0.14% of the total global fleet. Claims cost per vessel were slightly up on 2020, but still at historically low levels. However, rising steel prices and labour costs are expected to impact future hull claims.

As reported in previous years, the frequency of onboard fires in both the engine room and cargo areas continues to cause concerns, particularly for car carriers and container vessels. Fires occurred on over 1% of the containership fleet in 2021 with 0.4% of the fleet experiencing fires incurring over USD 500,000 in claims.

In terms of underwriting profitability, results showed continued improvement. The 2021 underwriting year gross loss ratios for Europe is estimated to end at 65%.

This includes some expected increase compared to 2020 which had extraordinarily good results as a combination of rising premiums in combination with extraordinary low claims impact in 2020 due pandemic effects, particularly reduced vessel activity in some segments. 2021 accounting year loss ratios reported for the other regions were:

  •  US: 70.5% (incurred claims)
  • Asia: 67% (paid claims)
  • Latin America: 54% (paid claims).

However, a return to full shipping activity, value increases, inflation of various costs impacting repair costs, new vessel designs, propulsion and fuel types are likely to impact claims trends going forward.

EXPLORE MORE AT IUMI’S GLOBAL MARINE INSURANCE REPORT

Tags: IUMImarine insurancereportstrends

Leave a Reply Cancel reply

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

Recommended

NTSB Investigation: Officers’ distraction causes vessels to collide

NTSB Investigation: Officers’ distraction causes vessels to collide

June 7, 2023
shipping eu ets

DNV: How shipowners can meet EEXI compliancy when essential components are unavailable

June 7, 2023
MARITIME EVENTS

Explore

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

Useful Links

  • About
  • Disclaimer
  • Editorial Policies
  • Advertising
  • Contact

© 2021 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
    • Reports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Opinions
    • Book Review
    • Career Paths
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Wellness Corner
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2021 SAFETY4SEA

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Disclaimer.