The International Union of Marine Insurance (IUMI) unveiled its highly anticipated 2024 analysis of the worldwide marine insurance market, known as the IUMI “Stats Report”, reports Ajot.
Highlights from this year’s report include:
- Global marine insurance premiums in 2023 totalled USD 38.9 billion, a 5.9% uplift on 2022. Development was seen across all lines of business. Drivers included a continued rise in global trade volumes and values (cargo), coupled with increases in vessel values (hull) or the increase in oil price, encouraging more activity in the offshore energy sector.
- Ocean hull premiums were reported at USD9.2 billion, up by 7.6% on the previous year. More activity, more vessels, rising values and reduced market capacity were responsible. Claims continued to be low resulting in positive loss ratios for all regions, although 2023 loss ratios show some deterioration which can be attributed to inflation impact on repair costs. Fires on large vessels continues to be a concern.
- Premiums for cargo insurance reached USD 22.1 billion, representing a 6.2% uptick last year and continuing the trend for market development in this sector. This was on the back of healthy global trade growth. Loss ratios in 2023 were also positive and started at their lowest point since 2017.
- The offshore energy sector continued its run of premium base growth, reflecting the rally in the oil price, and reported USD 4.6 billion for 2023, an increase of 4.6%. Fortunately, increased activity had not yet resulted in substantially more claims, and loss ratios were positive and relatively stable. Although 2023 figures started at a higher point than in previous years, and claims costs typically take several years to develop.
The latest report also includes a comprehensive overview of IUMI’s Major Claims Database, featuring data from 2013 onwards. Currently, 28 national insurance associations are actively contributing to the database. Notably, the cargo section comprises 6,400 observations, amounting to USD 10.9 billion across 12 data fields. In addition, the hull data encompasses 10,300 observations, with cumulative losses reaching USD 14.6 billion. The report meticulously analyses these losses in terms of severity, frequency, location, and causation.
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Source: Ajot
