The 2024 International Union of Marine Insurance (IUMI) "Stats Report" paints a promising picture of the global marine insurance market, with total premiums in 2023 hitting $38.9 billion—a 5.9% increase over the previous year. This growth cuts across all major lines, driven by strong global trade and rising vessel values. High oil prices have also spurred activity in the offshore energy sector. While this growth reflects a resilient market, it signals that we operate in an increasingly complex environment where adaptability and forward-thinking strategies are paramount.
Ocean hull insurance saw a notable rise, with premiums climbing by 7.6% to $9.2 billion. More activity on the water, an influx of new vessels, and increasing asset values have played key roles here. But with growth comes challenges; market capacity has been tighter, and inflation has started to push up repair costs, causing some deterioration in loss ratios. Fires on large vessels continue to be a concern as well.
The cargo insurance segment also experienced solid growth, with premiums rising to $22.1 billion—a 6.2% uptick from the previous year. Loss ratios are the best since 2017, showing that our industry is making real progress in managing the risks of transporting goods.
Finally, the offshore energy sector reported $4.6 billion in premiums, a 4.6% rise tied to the rally in oil prices. While increased activity has yet to translate to a spike in claims, it's important to note that claims in this sector can take years to develop fully.
Stability today doesn't mean we're off the hook for tomorrow's potential challenges. Looking ahead, marine insurance professionals must navigate complex challenges. Geopolitical tensions, severe weather events, and the push toward greener practices, to name a few.
For marine insurance professionals, these insights underscore the importance of staying informed about industry trends and challenges. Engaging with organizations like LIG Marine Managers and participating in educational seminars like CMIP can provide valuable knowledge and networking opportunities. By proactively addressing emerging risks and adapting to market dynamics, agents and underwriters can better serve their clients and contribute to the resilience of the marine insurance sector.
Mark Greenway
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