Fire, collision and sinking and damaged cargo are the top causes of marine insurance losses by value, according to Allianz Global Corporate & Specialty’s analysis of over 240,000 claims worth €9.2bn.

Inflation is compounding existing trends, driving higher claims severity, while soaring prices for steel and spare parts and rising labour costs are impacting hull repair and machinery breakdown claims.

At the same time, supply chain issues continue to impact claims, as do climate change related issues from extreme weather events to new exposures linked to the net-zero transition.

“The number of fires on board large vessels has increased significantly in recent years, with a string of incidents involving cargo, which can easily lead to the total loss of a vessel or environmental damage,” says Régis Broudin, global head of marine claims at AGCS. “At the same time, the shipping sector is also having to deal with many other challenges including a growing number of disruptive scenarios, supply chain issues, inflation, time-pressured crew members and employees, increasing losses and damages from extreme weather events, implementing new low-carbon technology and fuels, as well as Russia’s invasion of Ukraine.”

Fires accounted for 18% of the value of marine claims analysed (equivalent to around €1.65bn) compared with 13% for a five-year period ending July 2018.

See the next issue of CIR Magazine for further analysis.

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