(www.MaritimeCyprus.com) The International Union of Marine Insurance (IUMI) releases its 2023 global marine insurance market analysis – known as the IUMI Stats Report. The report presents various statistical data from multiple sources, including IUMI’s data, to provide insight into the marine insurance market within the context of global trade and shipping.
The International Union of Marine Insurance (IUMI) operates at the forefront of marine risk, it gives a unified voice to the global marine insurance market through effective representation and lobbying activities. As a forum for the exchange of ideas and best practice, IUMI works to raise standards across the industry and provides opportunities for education and the collection and publication of industry statistics.
The report also provides an update on IUMI’s Major Claims Database. Cargo claims are now being published for the fourth consecutive year based on 13 data fields. Major losses are analysed with respect to loss severity, frequency, location and cause.
Highlights from the 2023 report include:
- Global inflation, peaking at more than 10%, was one of the major factors impacting the global economy in 2022. Central banks continued to hike interest rates making borrowing more expensive. The strong US dollar helped performance for insurers receiving premiums in that currency but was not helpful for certain Asian countries whose own currency had weakened when compared with the USD.
- A welcome recovery in global trade (volumes and value) was underway
despite economic headwinds including inflation. Global seaborne trade
had also grown in 2022. Trade patterns were changing partially as a
result of the Ukraine war.
- The recent slowdown in the growth of the world fleet had now stabilised but the fleet continued to age reaching an average of 22.4 years. For the first time, Chinese ownership had just overtaken Greek ownership. The “short” order-book amounted to around 10% of the current fleet and asset prices continued to rise albeit with a significant correction in the containership sector.
- Global marine insurance premiums totalled USD35.8 billion – an 8.3% uplift on 2021. The post-pandemic rebound in trade, increased asset values, reduced market capacity and an adjustment in premiums were all likely to have exerted an influence. European markets continued to enjoy growth whilst some Asian markets had slowed due to a range of economic factors.
- Ocean hull premiums were reported at USD8.4 billion, up by 5.7% 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 nearly all regions.
- Premiums for cargo insurance reached USD20.5 billion representing an 8.3% uptick on last year and continuing the trend for market development in this sector. This was on the back of a post-pandemic rebound in global trade. Loss ratios had returned to more normal levels and for 2022, had started at their lowest point since 2015.
- The offshore energy sector continued its three-year run of premium base growth reporting USD4.1 billion for 2022, an increase of 7.3%. The uptick in oil prices was largely responsible, translating into increased offshore activity and a rise in average day rates. Losses had remained relatively low and recent years’ loss ratios were currently
positive but take a longer time to develop than for cargo or hull.
Commenting on this year’s report, IUMI’s Secretary General, Lars Lange, said:
“We shouldn’t lose sight of future challenges that are likely to inject a degree of uncertainty into all lines of business. Asset prices continue to rise and inflationary pressure will only add to the value of claims. The oil price is fluctuating and global trade forecasts vary. Trade
routes are changing, not least as a result of the war in Ukraine which, itself, is changing the political landscape. New cargoes such as lithium-ion batteries are creating new risks that must be fully understood and mitigated, as are new propulsion technologies resulting from our combined environmental protection ambitions. Added to this, climate change and new weather events are also making themselves known to insurers. We are increasingly managing new types of risk such as cyber and having to deal with the accumulation of risk as cargo of increasing value is being stored in single port facilities or is being carried on vessels that continue to grow in capacity. But against this uncertain landscape, we have seen a much-welcomed improvement for marine insurers stemming from changes to frame conditions and skilled underwriting which is demonstrated in this report.”
Click the below image to download the full IUMI Marine Insurance Stats Report 2023: