Nordic Association of Marine Insurers (Cefor) members collectively increased premium income by $274m last year, according to its latest annual figures.
In 2022, Cefor members received $2.495bn in premium from hull and machinery, protection and indemnity, offshore energy and the cargo markets, compared to $2.221bn in the previous year.
Cefor’s figures reflect the continuing growth of the Nordic insurance market and a hard market in the main marine insurance lines last year.
Around 50% of Nordic insurers’ premium income comes from the hull and machinery market and 44% from the protection and indemnity market.
Norway’s Gard is the largest of the Nordic marine insurers accounting for 32.6% of hull premium generated by Nordic insurers, 56% share of the P&I and 43.3% offshore energy income.
Cefor said it has recorded an increase in hull and machinery claims frequency in 2022 despite an overall benign year for underwriters.
The increase in claims frequency comes as shipping activity returns to its pre-pandemic levels.
Despite the increase, Cefor’s figures show claims costs have remained comparatively low and major losses have not affected the overall costs.
Commenting on the figures, Cefor managing director Helle Hammer said: “This is in line with expectations, and the claims cost per vessel is still at a very moderate level and does not exceed the pre-pandemic years. Major losses had comparatively little impact in 2022, contributing to an overall benign claims year.”
The association also notes that inflation does not yet appear to be having an impact on claims costs. Containership fires continue to be a concern, although container ship valuations went into reverse in the second half of 2022.
“In line with high demand, the first half year of 2022 still saw big-value increases on renewals but the situation started to reverse during the second half year,” Cefor analyst Astrid Seltmann said. “Serious fires also occurred in 2022 but had less impact on hull insurers’ costs. Nevertheless, the frequency of claims in excess of $500,000 remained high, contrary to the bulk and tank segment.”
At Cefor’s annual meeting, Anders Hovelsrud, insurance director at Norwegian war risk mutual DNK, was reselected as Cefor chair.
