Every year we like to take a look at the Nordic Association of Marine Insurers (Cefor) Annual Report to see what trends in Marine Insurance are noted. The theme of the 2016 report is clearly that the claims picture in 2016 was benign. Ocean Hull claims have continued their overall decline over the past few years with only 2012, the year of the “Costa Concordia”, standing out. Machinery Damage continues to make up the bulk of claims with a 39% share overall followed by contact and collisions with a 33% combined share.
The report also noted that “2016 has seen a continued drop in insured values and reported premium due to challenging market conditions.” As we know a great number commercial vessels remain laid up and when these vessels come out of hibernation, Cefor reminds us that history says, “watch out.” Vessels which have been in lay-up generally have a higher claim frequency than the active vessels both before and after lay-up periods.
The Cefor report also contains interesting specific breakdowns for vessels insured under the Nordic Marine Insurance Plan which is a suitable insurance product for certain commercial vessels. The Coastal and Fishing vessels segment, like Ocean Hulls, also shows an overall continuing decrease in claims.
The Cefor annual report can be found at www.cefor.no.© Sunrise Marine Risks and sunrisemarinerisks.com, 2017. All rights reserved.