Every year, IUMI (International Union of Marine Insurers) publishes a report that aims to provide useful information to increase awareness and risk exposure assessment.
At Care, we always look closely at the market to understand which factors it is characterised by and how it is developing.
In general, the following has been highlighted:
- Total premiums collected were estimated at $33 billion in 2021 (6.7% increase over 2020).
- For 2021, cargo accounts for the largest share (57.4%), then hull (23.5%), offshore energy (11.8%) and marine liability (excluding P&I) (7.3%).
- Considering a 5-year time frame, a growing trend is being recorded in all insurance sectors with growth in Cargo.
- 2021 was also characterised by a very low frequency of claims, probably due to a still slightly reduced post-pandemic activity.
Global Cargo premiums in 2021 have totalled $18.9 billion, an increase of 8% over 2020.
The greatest growth was recorded in Europe and Asia/Pacific (above all thanks to China which also records significant growth for 2021), also in Latin America; North America and Africa remain steady. A small decline in the Middle East has been observed.
We can say therefore that even after the most complicated period of the pandemic the cargo sector has recovered in the best possible way, with a growth that exceeds the already positive one of 2020, with much higher premiums than claims, while maintaining a loss ratio between 50-55%.
Global Hull premiums in 2021 were $7.8 billion, an increase of 4.1% over 2020. There has been indeed a particularly strong growth for the Asia/Pacific region, while for the rest there was a percentage reduction in premiums compared to last year.
Claims are increasing, however, maintaining the sector in technical balance, thanks to the high number of premiums.
However, some serious issues remain, such as the frequency of fire on board which continues to grow.
Global premiums for offshore energy in 2021 were $3.9 billion, an increase of 6.9% compared to 2020. The sector, in 2021, recorded very few claims, near historic lows (the record has been hit last year).
It is certainly the sector of the future. Although COVID has temporarily reduced oil demand, 2021 has recorded a strong recovery and with the war in Ukraine which has led to an increase in the price of energy we expect even higher premiums in the coming years .