• Home
  • News
  • Global marine insurance results indicate a modest recovery but COVID-19 adds uncertainty for the future, IUMI reports
  • 2020 September 15 16:13

    Global marine insurance results indicate a modest recovery but COVID-19 adds uncertainty for the future, IUMI reports

    IUMI – the International Union of Marine Insurance – presented its analysis of the latest marine insurance market trends during its annual conference which this year is being held online. Marine underwriting premiums for 2019 were estimated to be USD 28.7 billion which represents a 0.9% reduction from 2018.

    The USD 28.7 billion global income was split between these geographic regions: Europe 46.3%, Asia/Pacific 31.8%, Latin America 10.3%, North America 5.3%, Other 6.3%.

    2019 saw Europe’s global share reduce slightly from 46.4% (2018) to 46.3% and Asia’s share increase modestly from 30.7% (2018) to 31.8%.

    For global marine premium by line of business, cargo continued to represent the largest share with 57.5% in 2019, hull 24.1%, offshore energy 11.7% and marine liability (excluding than IGP&I) 6.8%.

    The offshore energy market saw a modest 1.4% reduction in total premiums in 2019 when compared with 2018. Premiums dropped sharply from 2014 to 2016 but more recent years have seen a flattening out. Premiums in this market are strongly influenced by the oil price. There is generally an 18-month time lag between a rise in the oil price and activity levels catching up. Oil prices had begun to recover from 2016, although with some variation, which led to a reactivation of offshore facilities and a corresponding stabilizing of the global premium base. However, COVID-19 has reduced the demand for oil forcing prices downward again leading to more uncertainty in this sector. The cycle of laying-up and then reactivating offshore assets brings more unpredictability to this market.

    The global premium base for the cargo market for 2019 was reported to be USD 15.6 billion – a 1.5% reduction from 2018. Exchange rate fluctuations impact most heavily on this sector and so comparisons with earlier years cannot be exact.

    Loss ratios in Europe for the years 2014-2016 were particularly high, but all recent years up to 2019 were under the influence of an increasing exposure to nat-cat or man-made events combined with accumulations on ships and in ports which were not necessarily reflected in premiums. 2019 started at around 60% which demonstrates a modest improvement compared with previous years and is expected to end slightly below 70% if the year follows a standard development pattern. Loss ratios in Asia were stable until 2014 but then increased dramatically to around 60% in 2018; there appears to be a slight improvement in 2019 with a loss ratio of around 50%. In Latin America, the ratio is stable in the 50-55% range. Taken together, these loss ratios indicate the beginnings of a market recovery.

    Global premiums relating to the ocean hull sector are relatively stable. IUMI reports a 2019 premium number of USD 6.9 billion representing just a 0.2% increase on the previous year.

    Loss ratios in Europe improved slightly in 2019 but are likely to reach at least 80% once the underwriting year is fully reported. This gives scant solace to hull underwriters who have endured a technical loss almost every year since 2005. Loss ratios in Asia are slightly improved at just below 70% and the ratio has dropped in the Latin American market to around 60%.
     
    The International Union of Marine Insurance (IUMI) represents 45 national and marine market insurance and reinsurance associations. Operating 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. IUMI is headquartered in Hamburg and traces its roots back to 1874.




2021 November 30

18:35 ICS urges WTO Director General to prioritise maritime transport in multilateral trade negotiations
18:14 First phase of Tuas Port reclamation works completes
17:53 Finnlines announces bunker surcharge for Malmö-Travemünde-Malmö
17:35 HDB, JTC and MPA, which issue over two-thirds of government invoices, offer e-invoicing through IMDA’s InvoiceNow
17:04 DNV supports world first large-scale testing of submerged CO2 pipelines
16:48 RF Navy’s large anti-submarine ship Vice Admiral Kulakov enters Barents Sea
16:34 Brittany Ferries takes delivery of Salamanca
16:04 Port of Oakland total cargo volume down 20 percent in October 2021
15:50 RF Navy's corvette Gremyashchy and two submarines of Varshavyanka project welcomed in Vladivostok
15:39 Abbey Heimensen appointed to VP of Marketing, MarineMax
15:34 The Port of Barcelona validates its Innovation Plan
15:19 Icebreaker Sibir of Project 22220 completed main part of shipbuilder’s sea trials
15:04 Terminal San Giorgio orders an eco-efficient Konecranes Gottwald ESP.8 Mobile Harbor Crane
14:43 Keppel Offshore & Marine signs global framework agreement with Ørsted on potential future offshore substation projects
14:24 DEME Group Signs Partnership Agreement with CIP for the Development of Energy Island in Danish North Sea
14:03 Volvo Penta to power Hurtigruten Svalbard’s new hybrid vessel
13:42 Rosterminalugol starts building wind and dust protection screens around its coal storage area
13:24 Kongsberg Digital and Aker BP extends collaboration agreement to accelerate data utilization
12:50 Container shipping costs up by 121.2% year-on-year - Xeneta
12:10 Navigation season closed on rivers of Saint-Petersburg
12:04 Ningbo Containerized Freight Index decrease slightly in November
11:48 1.59 million cbm of material dredged within Azov-Don Basin of Russia’s IWW in 2021
10:56 MABUX: Global bunker market turned into upward correction mode on Nov 30 after yesterday’s price collapse
10:42 China ports container volume rises 8.4% from January to October 2021
10:34 Port of Gdańsk awarded by the European Sea Ports Organisation
09:57 Klaipėda is preparing for the development of offshore wind energy in the Baltic Sea
09:30 Crude oil prices continue rising
09:15 Baltic Dry Index as of November 29
08:33 MAN Energy Solutions upgrades four-stroke engines for green future-fuels

2021 November 29

18:19 Gazprom posts RUB 1.59 trillion of operating profit in 9M’2021
17:58 Wärtsilä partners with China Classification Society and Tianjin Port Group
17:17 Construction of ice protection facilities at Utrenny terminal under Arctic LNG 2 project to be completed in 2022
16:54 Wallenius Wilhelmsen names new CEO
16:50 Lloyd’s Register is the world’s first Renewable Energy Certification Body for marine energy
16:19 Handling of socially important cargo to be obligatory prioritized by operators of sea terminals
15:41 Average spot market price for Russian M100 product rose to RUB 26,672 pmt
15:22 13 million cbm of material to be dredged in 2022 as part of Sabetta seaport’s Seaway Canal reconstruction
14:46 Oboronlogistics delivered cargo to Abkhazia
14:13 X-Press Feeders signs for sixteen new 1,170 TEU vessels
13:34 Alexeev’s Hydrofoil Design Bureau launches yet another Valdai 45R hydrofoil for Chuvashia
13:05 COSCO SHIPPING Ports and CSTD sign JV agreement with Tianjin Port Holdings and China Merchants International Terminals
12:57 DNV publishes pioneering new competence standard and recommended practice
12:47 Baltic Workboats AS developed new standard in commissioning of vessels together with Siemens Energy
12:24 MABUX: Bunker prices may sharply decline on Nov 29
12:08 Small missile ship Veliky Ustyug enters Caspian Sea to perform training and combat missions
11:45 Russian Maritime Register of Shipping issues digest of main changes in RS Rules
11:26 UECC takes delivery of the world’s first dual-fuel LNG battery hybrid PCTC
11:00 Yana Voytsekhovskaya appointed as Editor-in-Chief of IAA PortNews
09:56 Crude oil market sees upward price correction
09:19 Baltic Dry Index as of November 26

2021 November 28

15:17 PGS awarded 4D contract in the North Sea
14:08 Cruises return to the Port of New Orleans with 285 ship calls estimated for 2022
13:54 Kalmar to deliver significant order of Straddle Carriers to MPET and PSA in Antwerp
12:41 Skipper ordered to pay reparation of $10,400 after collision with kayaker on the Whanganui River, NZ
12:17 Port of San Diego extends public review period for Draft EIR for PMPU
11:57 HAROPA PORT elected “Best Green Seaport 2021”
11:33 Contract award for MPSV Siem Dorado
10:48 Port of Dunkerque announces new appointments to its Executive Board

2021 November 27

14:38 Liquid Wind secures SEK 151 million for production of fossil free fuel
13:21 TECO 2030 receives NOK 50 million in government support for fuel cell development