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  • 2023 September 18 18:07

    IUMI reports positivity for marine underwriters but uncertainty for future sustainability remains

    Today, the International Union of Marine Insurance (IUMI) presented its analysis of the latest marine insurance market trends at its annual conference in Edinburgh, Scotland.

    All lines of business reported an uplift in their global premium base for 2022 with the total reaching USD35.8 billion, representing an 8.3% increase on the previous year. Global income was split by region: Europe 47.7%, Asia/Pacific 28.4%, Latin America 10.3%, North America 8.5%, Other 5.1%.

    By line of business, the largest share was commanded by transport/cargo at 57.3% followed by global hull 23.4%, offshore energy 11.5% and marine liability (other than P&I covered by IG clubs) 7.7%.

    Global premiums in the offshore energy market for 2022 were reported as USD4.1 billion, an increase of 7.3% on 2021. There now appears to be an upward trend in the premium base following a prolonged reduction to the bottom of the trough in 2019. In this market, premiums mirror the oil price which has been relatively strong since late 2020 and more so in 2022. However, oil prices began to fall in 2023 which might herald weaker returns for offshore energy insurers this year and in 2024. There tends to be a lengthy lag between oil price changes and activation/deactivation of offshore assets. Losses in this sector remain low and relatively stable but the youngest underwriting years will continue to develop and this will be reflected in the loss ratios. This sector remains in a fragile balance with reduced premiums (but now rising) and a modest claims impact. Risks and claims resulting from unit activation have the potential to disrupt the balance.
    Cargo insurance returned a global premium base for 2022 of USD20.5 billion, an 8.3% growth on last year. There was growth in all regions especially in Europe and North America although the Asia/Pacific region experienced a slowdown, likely due to the combined effect of economic conditions and major Asian currencies weakening against the US dollar. That said, the changes in each region’s fortunes might also be connected with where the insurance contract resides, geographically. It should be noted that exchange rate fluctuations tend to impact most heavily on this sector and so direct comparisons with earlier years cannot be exact.

    Cargo premiums have demonstrated positive market development over a number of recent years and, in the main, tend to follow the trends in world trade. Global trade, in terms of value and volume, rebounded strongly post covid and further growth is projected, however forecasts do differ.

    Recent underwriting years, including 2022, have returned to a more normal (ie flatter) pattern in terms of loss ratios following a few years of extraordinary upwards claims adjustments. Loss ratios for 2022 are starting at their lowest level since 2015 and, although they will develop, this is positive and may indicate a sustainable improvement for this line of business.

    However, cargo underwriters continue to be concerned with a number of persistent challenges such as mis-declared cargoes, vessel fires, accumulation of risk in single locations, climate change, and political tensions. Added to this, a return to pre-pandemic activity, inflation and the growing number of natural catastrophes (nat-cats) are likely to impact on the future claims environment.
    Global premiums relating to the ocean hull sector increased by 5.7% in 2022 to reach USD8.4 billion. With the exception of Latin America which suffered a sharp downturn, all other regions reported an upturn. Whilst the distribution of premiums across the regions was relatively static, the Nordic countries enjoyed a marked increase, possibly due to their activity in covering war risks.

    2022 saw a continued growth in the world fleet as well as its overall value and this, coupled with reduced market capacity has impacted positively on the premium base. The gap between total gross tonnage/number of vessels and global premiums - which opened markedly from 2011-2018 – has closed slightly since 2020 and now appears to be relatively stable.

    Claims frequency had a long-term downward trend but has shown some increase after the extraordinary dip in 2020, following a return to pre-covid vessel activity. Average repair costs have seen some upward trend probably due to the impact of inflation. Major losses were moderate in recent years with the exception of fires but 2023 has seen an uptick including, again, a number of severe fires.

    With the exception of Latin America, loss ratios in all regions are experiencing a downward trend and have done so for the past three years. As with cargo, loss ratios for 2022 are starting from their lowest point since 2015 which is very positive for hull underwriters.

    With high value sectors such as containers and cruise ships now fully restored post-covid and the rise in major losses seen, so far in 2023, it remains to be seen how sustainable the current relatively low loss ratio pattern will be.

    IUMI’s total world-wide premium includes data from all relevant marine insurance markets. Care should be taken when making comparisons with earlier figures as data coverage varies in different years and a number of figures will be updated retrospectively. Similarly, the presented loss ratios for hull, energy and cargo do not encompass all countries per region, and underwriting year results do develop over a couple of years due to a time lag in claims reporting and payments. When interpreting statistics, caution should always be applied regarding what the data actually relates to.

    IUMI stresses that all figures released by IUMI’s Facts and Figures Committee are global market sums or averages. While these reflect the average performance of the marine insurance market, individual companies’ or countries’ results may differ substantially. As with all averages, individual underwriting units may over or underperform compared with the average. IUMI does not make any statements about what actual applied premium rates were or should be. The aim of IUMI is solely to provide data as available and raise awareness for the importance of a critical evaluation of the risks covered.

    The International Union of Marine Insurance e.V. (IUMI) is a non-profit association established for the purpose of protecting, safeguarding and advancing insurers‘ interests in marine and all types of transport insurance. It also provides an essential forum to discuss and exchange ideas, information and statistics of common interest for marine underwriters and in exchange with other marine professionals.

    IUMI currently represents 42 national and marine market insurance and reinsurance associations.

2023 September 26

18:07 Fincantieri signs a EUR 800 million facility agreement
17:53 Shortage of sea transport vessels in Russia estimated at over 400 units
17:36 MV Ballard becomes first Klaveness Combination Carriers vessel equipped with Silverstream Technologies air lubrication system
17:16 Shell completes Gibraltar's first cruise ship LNG bunkering
17:09 Okskaya Sudoverf shipyard launches second bilge water removing ship of project RST38 for Rosmorport
16:45 Port of Kiel opens two shore power facilities at the Ostuferhafen
16:28 Scandlines Germany officially receives the first intermediate ROV class certificate without the presence of conventional divers
16:07 Murmansk Commercial Seaport handled 1 million tonnes of coastwise cargo year-to-date
15:40 HMM introduces direct service between Korea and Indonesia
15:24 MOL and Idemitsu to launch demonstration test on recycling of marine plastic waste
14:32 Crowley Engineering Services wins design, production contracts for Crescent Towing
14:14 Admiral Makarov SUMIS to install simulator for training specialists of maritime autonomous surface ships navigation
13:42 Bunker One and Acelen launch bunkering operations outside the Port of Itaqui, Brazil
13:11 Port Houston container volume down 20% in August 2023
12:55 RZD and FESCO achieved record high daily result having dispatched 1.3 thousand TEU in 10 container trains from Commercial Port of Vladivostok
12:41 JSE, “K”Line, MOL and NYK partner to establish global liquefied hydrogen supply chain
12:21 MarineMax to expand superyacht services in Greece
11:40 Light Structures teams up with DNV to deliver structural integrity and digital twin services
11:27 2nd Ship Repair, Modernization and Components Conference opened in Saint-Petersburg
11:10 Wind-propulsion installations poised to surpass 50 mark in early 2024
11:01 Aktau Sea Commercial Port (Kazakhstan) obtains status of internationally important port
10:45 Bay-Houston Towing announces purchase of Port Arthur and Lake Charles operations from Seabulk
10:23 MAN Energy Solutions has filed 37 ammonia tech patent applications
09:58 “K” Line announces acquisition of third-party certification for CO2 reduction using marine biofuels and completion of a certificate issuance system
09:42 Mechel reports restructuring 320-million-dollar loan
09:19 RF Navy's Northern Fleet trains countering maritime unmanned vehicles

2023 September 25

18:07 Meyer Werft starts construction of the new cruise ship for NYK Cruises
17:35 Port of Vancouver cargo volumes increase by 11% in H1 2023
17:24 Number of ships servicing FESCO’s direct line between Saint-Petersburg and ports of China and India to double by year end
17:13 MOL, PETRONAS and MISC set the stage for the development of liquefied CO2 carriers
16:18 Throughput of Turkish ports in 8M’23 totaled 349.3 million tonnes, down 4.3% YoY
15:31 Ecospray's two Carbon Capture technologies successfully tested onboard
15:01 ADNOC and TAQA reach financial close on sustainable water supply project
14:53 Samara based Nefteflot to build three multipurpose dry cargo ships of RSD34L design
14:35 ITOCHU executes MoU for ammonia bunkering safety for ammonia-fueled container carrier
14:12 Alfa Laval joins a project to develop and produce the world's first 10 MW green hydrogen production facility offshore in the North Sea
13:48 Babcock’s LGE business wins world first contract for ecoCO2 cargo handling system
13:20 Oboronlogistics and Chinese manufacturers of spare parts and equipment reached preliminary agreements on direct supplies
12:14 All 120 workers rescued after Nile cruise ship accident in Egypt
11:42 China's shipbuilding output up 16.9 percent to 27.98 dwt in the first eight months of this year
11:24 COSL enters into the rigs purchase and sale contracts
11:13 Astrakhan based shipyard of USC launches chemical tanker Azimuth-1
10:58 Port of Rotterdam and Yokogawa start study to increase energy and resource efficiency across industries
10:27 COSCO SHIPPING launches the automotive industry digital supply chain platform
09:42 Port of Liepaja throughput in 8M’2023 fell by 9% Y-o-Y to 4.57 million tonnes
09:18 Total throughput of China’s sea and river ports in 8M’2023 rose by 8.4% YoY

2023 September 24

17:26 Pyxis Tankers announces sale of product tanker
15:47 ITOCHU announces execution of MoU for ammonia bunkering safety for ammonia-fueled container carrier
14:19 Elyse Energy announces the opening of an e-methanol plant on the Roches-Roussillon chemical hub
12:05 Joint development of AI-powered automatic daft survey application
11:58 Candela's C-8 foiling craft covered 420 nm in a day
10:31 ITOCHU signs MoU with Peninsula to develop ammonia bunkering in Spain

2023 September 23

15:23 Hapag-Lloyd to enhance connectivity at sea with Starlink satellite Internet
13:41 Hanwha Ocean inks 4-way deal on development of liquefied CO2 carrier
12:09 Vessels are among the first in the world to demonstrate the potential of hydrogen fuel cells
10:17 ABB to power Samskip’s new hydrogen-fueled container vessels

2023 September 22

19:41 IAA PortNews’ summary of past week news
18:00 PETRONAS, MOL and MISC to jointly develop LCO2 carriers for CCS projects
17:06 Ports of Los Angeles, Long Beach, and Shanghai unveil Implementation Plan Outline for first trans-Pacific green shipping corridor
16:32 Workers protest against HHLA’s partial sale to MSC
16:25 ZIM offers direct service between WCSA and Savannah
16:07 Exports of Russian fish products in 8M’23 increased by 4% YoY to 1.4 million tonnes
15:49 Construction begins on Crowley-ESVAGT wind farm service vessel
15:21 APM Terminals Apapa – Ibdan rail connection opens for congestion-free business
14:51 Ascenz Marorka weather routing solution to equip the entire fleet of Clean Products Tankers Alliance
14:22 Guangzhou Port Group and Jiangsu Port Group sign a strategic cooperation framework agreement
13:59 Throughput of port Shanghai (China) in 8M’2023 rose by 10% YoY
13:41 A.P. Moller – Maersk opens new warehouse in Douala, Cameroon
13:12 Samsung Heavy Industries develops laser high-speed welding robot for LNG vessels
12:54 Container throughput of Hong Kong port (China) in 8M’2023 fell by 15% YoY