Cefor, the Nordic Association of Marine Insurers, has issued its 2025 Mid-year Hull Report, highlighting the most common and major causes of losses for the maritime industry, reports Safety4sea.
Fires dominate 2025 major losses
According to the report, 4 claims exceeding USD 20 million were reported by 30th June, far more than the ten-year average of 1.5 claims per 6 months. All 4 claims were fires. Since 2015, 16 out of 26 claims in all above USD 20 million were fires, thus representing the highest share of the costliest claims (62%). Other claims in that cost range typically are navigational-related (collisions, groundings, contact), and only occasionally another type. Another aspect is that 11 of in all 16 fires above USD 20 million reported since 2015 hit vessels older than 20 years – illustrating the risk of an ageing fleet.
Credit: Cefor
Third consecutive year with elevated claims costs
A combination of repair cost inflation and the return of major losses drove up claim costs from 2020 to 2023. While the increase seems to flatten out, 2024 and 2025 claims costs stay at a similar level as in 2023.
The silver tsunami rolls on
The ageing of the world fleet continues, rolling wave-like through the NoMIS portfolio. While old vessels may be well maintained, from a statistical perspective old vessels are more prone to fires, machinery claims and consequential damages.
Engine-room fires: highest occurrence on the oldest vessels and in the passenger, container and car/RoRo segment
While headline losses often are about fires caused by dangerous cargo, especially on container or car/RoRo vessels, engine room fires do not need less attention. An ageing fleet heightens the risk of machineryrelated problems.
Major and total losses
2025 is the third consecutive year with claims above USD 50 million, after a benign period 2015-2022 with only an occasional claim exceeding USD 30 million. Fires had significant impact in the first half year of 2025. Four out of seven claims above USD 10 million were fires and the costliest claims. Fires not only mean an economic loss but represent a threat to the life of the seafarers as well as the environment. Therefore, it is crucial to identify and address the causes to prevent such losses.
In the first half year of 2024, there were also seven claims above USD 10 million, although the costliest was a collision. In the whole year of 2024, fifteen losses exceeded USD 10 million, of which seven were fires, two collisions, two groundings and four machinery damage.
Credit: Cefor
It may be noted that out of the fifteen costliest losses in 2024 only nine were reported with costs exceeding USD 10 million as of 31st December 2024, meaning the estimated final cost of six of the fifteen losses was significantly adjusted upward during the first half year 2025.This illustrates that it is often not possible to assess the full cost of a claim already shortly after it has happened, and especially the recent years saw an extraordinary upward adjustment of claims reserves in the second year.
There is thus a risk that the number of claims above USD 10 million in the first half of 2025 could almost double when the cost of all claims occurred in that period will be fully known.
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Source: Safety4sea
