News
Fire, collision and sinking and damaged cargo were the top causes of marine insurance losses by value in 2017-2021, according to Allianz Global Corporate & Specialty (AGCS)'s analysis of more than 240,000 claims worth EUR9.2 billion in value.
Inflation compounded existing trends driving higher claims severity. Soaring prices for steel and spare parts and rising labor costs impacted hull repair and machinery breakdown claims, the analysis says. Supply chain issues impacted claims, as did climate change through extreme weather events and new exposures linked to the net-zero transition.
Fires accounted for 18% of the value of marine claims analyzed (equivalent to around EUR1.65 billion) compared with 13% for a five-year period ending July 2018. A contri
buting factor to this increase of fire risk on board vessels is often mis-declared and non-declaration of dangerous cargos, while a recent increase in engine room fires may reveal some underlying risk around crew competencies. The potential dangers that the transportation of lithium-ion batteries on vessels pose only add to these concerns.
