IUMI Stats report 2024 - Analysis of the Global Marine Insurance market

to fall. The global economy is continuing to normalise following the pandemic. Growth is predicted for most of the larger economies. Seaborne trade continues to recover in the face of changing trade patterns caused by international conflict.
• Global marine insurance premiums in 2023 totalled USD38.9 billion – a 5.9% uplift on 2022. Development was seen across all lines of business. Drivers included a continued rise in global trade volumes and values (cargo), coupled with increases in vessel values (hull), or the increase in oil price encouraging more activity in the offshore energy sector.
• World fleet growth has stabilised, new deliveries are down but so is scrapping. As a result, the average age of vessels is increasing. China is now firmly established as the world’s largest ship owning nation. Vessel earnings in 2024 are softening but remain above the 2023 average.
• Ocean hull premiums were reported at USD9.2 billion, up by 7.6% on the previous year. More activity, more vessels, rising values and reduced market capacity were responsible. Claims continued to be low resulting in positive loss ratios for all regions, although 2023
  loss ratios show some deterioration which can be attributed to inflation impact on repair costs. Fires on large vessels continues to be a concern.
• Premiums for cargo insurance reached USD22.1 billion representing an 6.2% uptick on last year and continuing the trend for market development in this sector. This was on the back of healthy global trade growth. 2023 loss ratios were also positive and started at their lowest point since 2017.
• The offshore energy sector continued its run of premium base growth – reflecting the rally in the oil price – and reported USD4.6 billion for 2023, an increase of 4.6%. Fortunately, increased activity had not yet resulted in substantially more claims and loss ratios were positive and relatively stable, although 2023 figures were starting from a higher point than in previous years and claims costs typically take several years
  to develop.

Lars Lange, IUMI Secretary General, said:

Increasing geopolitical tensions are creating headwinds for our industry and there seems no end to their impact in 2024 or beyond. The continuing Houthi attacks in the Red Sea area and the Russia/Ukraine war are disrupting traditional shipping routes and causing some carriers to change the way they operate. Other headwinds for 2024 and beyond will include the impact of the impending US election, climate change and associated extreme weather events, zero-carbon fuel technology and cyber-risks.

Click the below image to download the full IUMI Marine Insurance Stats Report 2024:

Source: IUMI