Whilst in general, major losses remain stable, the continued erosion of the global premium base means that attritional losses are becoming much more significant. The increased risk of large, more complex and costly claims has the potential to impact all marine underwriting sectors in 2019.
On Tuesday 18 September – Sean Dalton, the International Union of Marine Insurance (IUMI) Cargo Committee Chair reported that the marine cargo market remained the largest commercial marine line of business in terms of premium income. IUMI’s 2017 statistics showed global cargo premiums amounting to US$16.1 billion. Globally, the cargo line has been unprofitable for several years with rising loss ratios and expense ratios and this is of great concern to underwriters.
Although global premiums for the offshore energy insurance sector dipped by 5% in 2017, signs of recovery are on the horizon. Speaking at this year’s International Union of Marine Insurance (IUMI) conference in Cape Town today, IUMI’s Offshore Energy Committee Chairman, James McDonald, explained:
At yesterday’s IUMI conference in Cape Town, Chair of the Ocean Hull Committee, Mark Edmondson, highlighted a continuing deterioration of premium income against the more positive picture of an improving risk profile. However, the international market has shown signs of improvement during 2018, although continuing volatility and uncertainty in many sectors remained a concern.
Opening this year’s International Union of Marine Insurance (IUMI) annual conference yesterday in Cape Town, South Africa, IUMI President Dieter Berg impressed on delegates the need to manage “unthinkable” risks.
Speaking at this week’s IUMI (International Union of Maritime Insurance) conference in Cape Town, South Africa, Donald Harrell, chair of IUMI’s Facts & Figures Committee, reported a successful conclusion to IUMI’s large loss database pilot project.
Against the positive backdrop of a benign claims environment in some sectors, IUMI’s statistics show an increasing mismatch between premium income, covered risk and claims costs. On a global average basis, buffers to cover extraordinary single or accumulation losses are non-existent.