05/12/2022
Marine Insurance News
Fire, collision and sinking, and damaged cargo are the top causes of marine insurance losses by value.
At a time of rising exposures and inflation, cargo damage is the most frequent cause of loss, following an increase in both attritional and high-value claims. At the same time, the effects of climate change and the transition to net-zero are becoming a feature of claims activity.
Meanwhile, vessels trapped in Ukrainian harbours were estimated to be worth as much as $1bn.
Shipping losses may have more than halved over the past decade … but fires on board vessels remain among the biggest safety issues for the industry. The potential dangers that the transportation of lithium-ion batteries pose if they are not stored or handled correctly only add to these concerns, and we have already seen a number of incidents.
Higher salvage and wreck removal costs are associated with larger vessels, which require specialist equipment and rely on a limited number of ports of refuge.
Inflation was also adding to the problem of rising values at risk. The value of both vessels and cargos has been increasing at a time of growing exposures associated with larger vessels.
Damaged goods, including cargo handling and storage, is the top cause of marine insurance claims by frequency, and the third-largest by value over the past five years
