The International Union of Marine Insurance (IUMI) has released its 2024 “Stats Report,” offering insights into the global marine insurance market. This annual report examines the health of the sector within the broader context of global trade, shipping, and economic conditions, drawing data from various sources, including IUMI’s own contributions.
According to the report, global marine insurance premiums for 2023 reached USD 38.9 billion, marking a 5.9% increase from the previous year. This growth spanned all lines of business, driven by a rise in global trade volumes and values, increasing vessel prices, and a surge in activity within the offshore energy sector due to higher oil prices.
Ocean hull insurance premiums saw a notable rise, reaching USD 9.2 billion, a 7.6% boost from the prior year. Factors such as an increase in vessel numbers and values, paired with reduced market capacity, fueled this growth. Claims remained relatively low, producing favorable loss ratios across all regions. However, 2023 saw some deterioration in these ratios, mainly due to inflation impacting repair costs. Fires on large vessels remained a significant concern.
The cargo insurance sector also experienced a strong year, with premiums hitting USD 22.1 billion, up by 6.2%. This growth reflects continued expansion in global trade. Loss ratios in this sector began at their lowest point since 2017, contributing to a positive outlook for the industry.
The offshore energy sector, benefiting from rising oil prices, reported USD 4.6 billion in premiums, an increase of 4.6%. Despite heightened activity, claims have not yet surged, and loss ratios remained stable. However, 2023 figures began at a higher baseline, and claims costs in this sector often take several years to materialize.
IUMI’s report also includes updates on its Major Claims Database, which now features data from 28 national insurance associations. The database covers cargo and hull losses dating back to 2013, with 6,400 cargo observations totaling USD 10.9 billion, and 10,300 hull observations reflecting USD 14.6 billion in cumulative losses. The data is analyzed by severity, frequency, location, and cause.
Lars Lange, IUMI’s Secretary General, commented on the report’s findings: “Our data for 2023 shows positive market development across all lines of marine insurance. However, we are aware of the challenges ahead, including geopolitical tensions, large vessel fires, and the industry’s transition towards greener practices.”
Lange emphasized IUMI’s commitment to monitoring these challenges and working closely with global partners to ensure the marine insurance sector remains prepared to meet the needs of global trade.
