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Sandy Wiped Out Entire US Marine Premiums for 2012: IUMI

Source: International Union of Marine Insurance (IUMI)

Posted on 22 Mar 2013 by Neilson

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Marine and SandyThe cost of Superstom Sandy to the global marine market has been put at $2.5 billion-$3 billion effectively wiping out the entire US marine premiums for 2012 according to the annual Spring Statistics issued by the International Union of Marine Insurance (IUMI).

The statistics which cover the cargo, ocean hull and offshore energy sectors remain a litmus test for the marine insurance market and the impact of Sandy will define 2012 in the eyes of the underwriters. In the ocean hull class, the loss of the Costa Concordia was the biggest event in a year where the level of losses remained at concerning levels.

In the offshore drilling industry the pace of new rigs coming into service continued with a further increase expected this year. The figures show 36 new builds were delivered in 2012, with 74 new builds are scheduled to be delivered in 2013.

"Some severe major losses hit several lines of marine insurance business in 2012", IUMI's president Ole Wikborg said, "Although the claim frequency and cost are beyond our control, we're going to do our part to turn it for the better in 2013. Hence we're chosen for IUMI's 2013 conference in London in September the common theme ‘Building resilience - defining for a sustainable future'".

Key trends highlighted by the statistics include:

* The rally in financial markets is creating an upturn in trade with a positive impact on the cargo market.

* The number of total hull losses increased marginally but the level of tonnage has fallen.

*Weather continues to be the major cause of the total hull losses representing 50% of the vessels lost between 2008 and 2012.

* The number of vessels scrapped in 2012 was at "all time high" representing almost 60 million DWT.

*The size of the world drilling rig fleet increased to 833 active units in 2012