Concerns remain for marine underwriting

An increased risk of large, more complex and costly claims has the potential to impact all marine underwriting sectors in 2019, the International Union of Marine Insurance (IUMI) has said.

Speaking about the current state of the hull, cargo and offshore energy insurance markets, IUMI said that while major losses remain stable, continued erosion of the global premium base means that attritional losses are becoming much more significant.

Rama Chandran, chairman of IUMI's Ocean Hull Committee, commented: “Underwriters welcome the industry's overall improvement in safety but also recognise that increasing size, scale and complexity of new tonnage is affecting the current risk profile.

"There is the potential for severe volatility in a conventional hull portfolio influenced by the continuing erosion of the premium base.”

Mr Chandran stated that concerns include the risk of fires onboard large container vessels. Digital technology advances in naval architecture and vessel operations are being monitored, alongside “the ability of seafarers to effectively manage cutting edge technology and growing amounts of data”.

He added: “We are also likely to see increased machinery claims resulting from the 2020 sulphur limit.”

By Rebecca Jeffrey

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