The annual statistical report from the International Union of Marine Insurance (IUMI) has been released, and on the surface it appears to be good news for marine insurers, with a 2% rise in global premiums.
However, the report also noted a number of challenges currently facing the industry, including a disparity between increased income levels and the risks actually covered.
While major claims have not presented a large-scale issue for a number of years, both cargo and hull present a number of issues; unprecedented nat-cat and outlier event losses, along with falling vessel values and other market conditions have all contributed to a riskier environment for insurers, even in light of an upwards turn in the market.
Speaking at the organisation’s annual conference in Cape Town, South Africa, Vice-Chair of IUMI’s Facts & Figures Committee, Astrid Seltmann noted that: “In general, the IUMI statistics clearly illustrate the need for sustainable underwriting by understanding the simple - and sometimes not so simple – mathematics of evaluating the risks and expected costs associated with a prudent marine portfolio.”
IUMI also announced that it hopes to create a large and consistent loss database across hull and cargo. Utilising data from member companies, the organisation hopes to provide detailed analysis across loss severity, frequency, location and cause.
The database has entered its early stages over the last year, with the organisation hoping that its reach will begin to expand over the coming years across more participating organisations.
Donald Harrell, chair of IUMI’s Facts & Figures Committee, stated that he was: “…pleased to say that the initial phase of our project has been a success and we now look forward to widening our network of participants and strengthening our database.”
