IUMI reports 2023 marine insurance premiums to increase 5.9% to $38.9 billion | Insurance Business American Marine IUMI reports marine insurance premiums to increase 5.9% in 2023 to $38.9 billion
Trade, rising ship values and rising oil prices drive global growth
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Written by Kenneth Arauro
The International Marine Insurance Union (IUMI) has released its 2024 analysis of the global marine insurance market through the annual IUMI Statistical Report.
This report provides insight into the health of the marine insurance sector, considering factors such as global economic trends, trade and shipping. The data in this report is sourced from IUMI and various external agencies and provides analysis and commentary.
Global marine insurance premiums in 2023 reached $38.9 billion, an increase of 5.9% from 2022. Growth was seen in all business areas due to increased global trade volumes and values, increased ship values in the hull sector, and higher oil prices. Promote activities in the marine energy industry.
Ocean-going vessel insurance premiums totaled $9.2 billion, an increase of 7.6% year over year. This growth is due to increased shipping activity, rising vessel values, and declining market capacity.
Loss ratios deteriorated slightly in 2023, despite low claims and favorable loss ratios in all regions. This may be due to inflation affecting repair costs. Fires on large ships continue to be a concern.
Cargo insurance premiums increased by 6.2% year-on-year to $22.1 billion. This increase reflects the continued development of the market and the growth of global trade. Losses in the cargo sector were positive, starting at the lowest level since 2017.
Premiums for the marine energy sector in 2023 were reported to increase by 4.6% to $4.6 billion. This is due to higher oil prices and increased activity, but this has not yet led to a significant increase in claims. Loss ratios remain positive, but start from a higher level than last year, and we expect it will take several years for claims costs to fully increase.
The report also includes updates from IUMI’s main claims database, which has been collecting data since 2013. Contributions from 28 national insurance associations resulted in 6,400 cargo-related observations resulting in $10.9 billion in losses and 10,300 hull-related observations resulting in $14.6 billion in losses. Cumulative loss. Data is analyzed by severity, frequency, location, and cause of loss.
IUMI Director General Lars Lange (pictured above) said that 2023 saw positive market developments across all areas of marine insurance.
“Looking to the future, there are likely to be many headwinds this year and beyond. Geopolitical tensions, continued attacks in the Red Sea region, and the Russia/Ukraine war are significant. A cleaner, greener society “Our transition to 2020 will have a major impact, as will the continued and often tragic increase in large ship fires,” Lange said.
IUMI will continue to monitor the challenges facing the marine insurance sector and work with relevant agencies to inform underwriters and ensure they are prepared to meet the evolving needs of global trade.
Mr. Lange also acknowledged the work of IUMI’s Facts and Figures Committee and its data partners in compiling statistical reports and the main claims database.
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