The International Union of Marine Insurance (IUMI) reported annual revenue of $33bn in 2021, a 6.4% increase compared to the previous year.
The growth in premium income is further evidence of the hardening marine insurance market, but the increase was also helped by a strengthening of the US dollar and a rebound in trade following the pandemic.
Speaking at the IUMI conference in Chicago vice chair of the facts and figures committee Astrid Seltmann said it had been another good year for marine insurers.
“It was the year when global trade saw a tentative recovery, absolute premiums rose, claims impact was benign, and as a result loss ratios improved,” she said.
Cargo insurance showed the biggest gains, up 9.9% to $19.9bn, on the back of a stronger US dollar and increased global trade volumes.
Global premiums in the hull and machinery sector increased 4.1% to $7.8 bn. There was continued strong growth in the Nordic region, as well as China, although the decline in the UK market share continued following Lloyd’s of London’s Decile 10 programme to cut back on loss-making sectors.
Insured values also continued their recent increase helped by an increase in container ship asset values.
Historic low
Claims costs per vessel were slightly up in 2021, but remain at historically low levels. Seltmann said rising steel prices and labour costs are likely to impact future hull claims costs.
Hull and Machinery claims increased slightly in 2021 but remains low IUMI said.
Fires on container ships continue to be a major concern for marine insurers. IUMI's figures show in 2021 0.4% of the fleet experienced fires incurring over $500,000 in claims.
