Global marine insurance premiums in 2023 totalled $38.9bn - a 5.9% increase over 2022, according to the International Union of Marine Insurance (IUMI).
The IUMI’s 2024 analysis of the global marine insurance market – the IUMI “Stats Report” – looks at the health of the marine insurance sector within the framework of the global economy, trade and shipping. Data are gathered from a number of agencies including IUMI’s own sources and analysed and presented with some additional commentary.
The report says that development was seen across all lines of business in 2023. 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.
Other highlights from this year’s report include:
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Ocean hull premiums were reported at $9.2bn, 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.
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The offshore energy sector continued its run of premium base growth – reflecting the rally in the oil price – and reported $4.6bn 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 were starting from a higher point than in previous years and claims costs typically take several years to develop.
The report also provides an update on IUMI’s Major Claims Database which contains data from 2013 onwards. 28 national insurance associations are now contributing and cargo observations total 6,400 representing $10.9bn spanning 12 data fields. Hull data extends to 10,300 observations and $14.6bn in cumulative losses. Losses are analysed with respect to loss severity, frequency, location and cause.
Commenting on this year’s report, IUMI secretary-general, Mr Lars Lange, said, “Our data relating to 2023 demonstrates positive market development for all lines of marine insurance. The global premium base continued to grow and this, coupled with a relatively benign claims environment, generated encouraging overall results for underwriters. Looking ahead, there are a number of headwinds likely to make themselves known this year and beyond. Geopolitical tensions and the continuing attacks in the Red Sea area and the Russia/Ukraine war are significant. Our transition to a cleaner and greener society will also impact heavily as will the continuing - and often tragic - increase in large vessel fires.”
The full report is available to download at: https://iumi.com/statistics/public-statistics