The IUMI Stats Report 2020 is the third in a series of annual reports launched in 2018. It presents a range of statistical data from a variety of sources, including IUMI’s own data, to provide an insight into the marine insurance market within the context of global trade and shipping. Working with a number of valued partners, the IUMI Facts and Figures Committee has produced this year’s statistical analysis which also includes opinion.

IUMI collects data on global marine premiums which is presented alongside loss ratios, claims and other data. The coronavirus pandemic has significantly impacted trade, shipping, commodity prices and consumer activity which in turn, means the outlook for marine insurance is far from certain. Despite this challenge, the analysis indicates the beginnings of a modest market recovery in most business lines.

This year, and for the first time, the report includes the initial findings from IUMI’s Major Claims Database. Over the past three years 22 national insurance associations agreed to participate and together submitted 6,800 records of major marine losses. An analysis of the major cargo claims data can be found in the report. We are grateful to Boston Consulting Group and the project team led by Dave Matcham from the International Underwriting Association for undertaking such a large and valuable project.  

Highlights from this year’s analysis include:

• Global marine premiums across all sectors are relatively stable. Early signs of a modest market recovery are encouraging although COVID-19 has injected a new level of uncertainty.
• The gap between global hull premiums and global tonnage continues to widen, although at a slower rate. Hull loss ratios have improved slightly and a benign loss environment prevails (with the continued exception of large vessel fires). This, coupled with a reduction in underwriting capacity, seems likely to predict a market recovery, but from an exceptionally low base.
• Loss ratios for cargo underwriting have improved slightly. But global trade dipped sharply as a result of COVID-19 and accumulation of risk onboard and ashore continues to grow. A market recovery across all regions is reported, however.
• The fortunes of the offshore energy market tend to mirror the oil price which has been unstable, particularly during the pandemic. However, a low impact hurricane season (to date) is positive but a fragile balance between a low premium base and a low claims environment exists.

The report is available HERE.