Allianz Global Corporate & Specialty (AGCS) says fire/explosion is the most expensive cause of marine insurance claims, accounting for 18% of losses between January 1 2017 and December 31 2021. 

Shipping incidents was a close second at 17%, followed by damaged goods at 12%, the Allianz-owned corporate insurance carrier says in its annual Safety and Shipping Review. 

AGCS analysed close to 250,000 marine insurance claims, including the share of other insurers. Marine claims losses during the period reached about €9.2 billion ($14.9 billion). 

The review says a combination of factors is increasing the risk of blazes at sea and on land. 

“Hazardous and combustible goods are increasingly transported by containers, while the prevalence of Lithium-ion (Li-ion) batteries poses a growing risk for both container shipping and car carrier vessels,” the review says. 

“At the same time, these hazardous cargos are increasingly transported by large vessels, where the consequences of fires are amplified, resulting in more severe losses and longer delays.” 

The review says fire is one of the biggest causes of general average claims on container vessels, and one of the main causes of total losses across all vessel types with 64 ships lost in the past five years alone. 

General average is the long-standing principle of maritime law that all parties share in any damage or expenditure incurred while preserving property, for example to save a vessel and its cargo during a storm. 

With upwards of 20,000 containers on board some vessels, the risk of a fire originating from a container increase, while detecting and fighting a fire at sea is particularly difficult for a crew of just 20 to 30 people, according to AGCS Global Product Leader Cargo Marcel Ackermann 

Recent incidents include the ZIM Charleston fire in August last year, in which some 300 containers were reportedly damaged, the review says. This was followed shortly by the TSS Pearl in the Red Sea in October, which sank after the crew were forced to abandon ship. 

“When we look at significant general average incidents involving container vessels over the past five years, they are largely related to fires,” Mr Ackermann said. 

“General average risk these days comes down to fire, and the majority of these incidents are related to mis-declaration of cargo.” 

Click here to access the report.