The International Union of Marine Insurance (IUMI) has unveiled its annual analysis of the global marine insurance market in the 2023 IUMI Stats Report.
The report offers insights into the state of the marine insurance sector within the broader context of the global economy, trade, and shipping.
Global marine insurance premiums in 2022 reached USD35.8 billion, marking an impressive 8.3% increase from the previous year.
Factors such as the post-pandemic recovery in trade, augmented asset values, reduced market capacity, and premium adjustments are cited as contributing to this growth.
While European markets saw continued expansion, certain Asian markets experienced a slowdown due to various economic factors.
Ocean hull premiums surged to USD8.4 billion, a 5.7% rise from the preceding year. Increased activity, a higher number of vessels, escalating values, and diminished market capacity were identified as driving forces. The low number of claims maintained positive loss ratios across nearly all regions.
Cargo insurance premiums soared to USD20.5 billion, reflecting an 8.3% increase compared to the previous year. This uptick is attributed to the resurgence of global trade post-pandemic. Loss ratios returned to more typical levels, starting at their lowest point since 2015 for 2022.
The offshore energy sector continued its three-year streak of premium base growth, reporting USD4.1 billion for 2022, a substantial 7.3% surge.
This growth can be primarily attributed to the rise in oil prices, resulting in increased offshore activity and higher average day rates. The sector maintained relatively low losses, leading to positive recent years’ loss ratios.
Additionally, the report includes an update on IUMI’s Major Claims Database, with cargo claims being published for the fourth consecutive year. These claims are analysed based on 13 data fields, providing insights into loss severity, frequency, location, and cause.
Commenting on this year’s report, IUMI Secretary General, Lars Lange, stated, “Our annual Stats Report has become a much-anticipated descriptor and analysis of the current health of the marine insurance market. This year, it is gratifying to note that all business lines have performed relatively strongly showing an increase in the global premium base and a better performance in terms of loss ratios. This is largely off the back of a post-pandemic rebound in global trade but can also be attributed to more disciplined and effective underwriting. Insurers are continuing to operate in a relatively low claims environment, which is good news for all concerned, but we must be watchful for a return to more usual loss levels now that shipping and offshore activity has normalised following Covid.”