The 2024 “Stats Report,” published by the International Union of Marine Insurance (IUMI), offers a thorough examination of the world market for marine insurance.
According to the report, marine insurance premiums increased significantly, rising 5.9% from 2022 to a total of $38.9 billion in 2023.
All business sectors saw this expansion, which was fueled by a number of causes such as rising global trade volumes and values, rising vessel values, and increased activity in the offshore energy industry as a result of higher oil prices.
When the numbers were broken down, ocean hull premiums increased by a significant 7.6% year over year to $9.2 billion. Increased marine activity, more vessels, growing asset values, and a smaller market capacity are all factors contributing to this expansion. The inflationary effect on repair costs was the main cause of the minor decline in 2023 loss ratios, even while claims stayed comparatively low and produced positive loss ratios in every region. The paper also draws attention to the persistent problem of major vessel fires, which still affects the sector.
Additionally, cargo insurance premiums increased significantly, rising 6.2% from the previous year to $22.1 billion. Strong increase in international trade helped to sustain this upward trend in the freight industry. Remarkably, cargo insurance loss ratios for 2023 began at their lowest level since 2017, suggesting a positive climate for insurers operating in this market.
Premiums increased by 4.6% to reach $4.6 billion in 2023, demonstrating the offshore energy sector’s continued growth. The surge in oil prices, which has prompted more activity in the industry, is reflected in this growth. Loss ratios are still positive and comparatively stable, and claims have not increased significantly despite the spike in activity. According to the report, claim expenses in this industry usually take many years to completely develop, and 2023 estimates began at a higher point than in prior years.
Additionally, IUMI’s Major Claims Database has grown significantly. The database presently has 6,400 cargo observations, representing $10.9 billion over 12 data fields, including contributions from 28 national insurance associations. With 10,300 observations and a total loss of $14.6 billion, the Hull data is much more comprehensive. A thorough examination of losses in terms of their severity, frequency, location, and cause is made possible by this extensive database.
The IUMI is nevertheless dedicated to helping the industry in spite of these obstacles.
