Global marine insurance premiums in 2022 increased by 8.3% to $35.8 billion in comparison with the year before, driven by the post-pandemic rebound in trade, rising asset values, reduced market capacity, and an adjustment in premiums, the International Union of Marine Insurance (IUMI) revealed in its 2023 analysis of the global marine insurance market.
European markets continued to enjoy growth whilst some Asian markets had slowed due to a range of economic factors.
Ocean hull premiums increased by 5.7% at $8.4 billion, compared to the previous year, due to factors such as more activity, more vessels, rising values and reduced market capacity. Claims continued to be low resulting in positive loss ratios for nearly all regions.
Premiums for cargo insurance reached $20.5 billion representing an 8.3% uptick on last year and continuing the trend for market development in this sector.
In accordance with the analysis, this was on the back of a post-pandemic rebound in global trade. Loss ratios had returned to more normal levels and for 2022, had started at their lowest point since 2015.
The offshore energy sector continued its three-year run of premium base growth reporting $4.1 billion for 2022, an increase of 7.3%. The uptick in oil prices was largely responsible, translating into increased offshore activity and a rise in average day rates.
Losses had remained relatively low and recent years’ loss ratios were currently positive.
The report also provides an update on IUMI’s Major Claims Database, which now includes cargo claims based on 13 data fields for the fourth consecutive year. Major losses are analysed with respect to loss severity, frequency, location and cause.
Lars Lange, IUMI secretary general, said: “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,” Lange concluded.
