The International Union of Marine Insurance (IUMI) says all lines of business have reported an uplift in global premium base and loss ratios have improved, particularly for hull and cargo. 

The global premium base reached $US35.8 billion ($55.3 billion) last year, up 8.3% from the previous period, IUMI says in a market trends analysis delivered at the annual conference in Edinburgh last week. 

Europe accounted for 47.7% of global income, Asia Pacific 28.4%, Latin America 10.3%, North America 8.5% and Other 5.1%. 

IUMI Facts and Figures Committee Vice Chair Astrid Seltmann says underwriters had suffered poor returns over several years, but results started to improve from 2020 and last year there was relatively strong growth in premiums. 

“In combination with a benign claims impact, this has translated into a much better performance in terms of loss ratios, specifically for hull and cargo,” she said. 

“The reasons are complex but are likely due to the post-pandemic rebound in global trade coupled with reduced market capacity, particularly for hull.” 

Ms Seltmann says there’s been a continued strong performance from Europe, after many years decline. Asian growth appears to be slowing, but the general trend for global premiums continues to be upwards. 

Committee Chair Jun Lin says future uncertainties include inflation, changing trade routes, cargoes such as lithium-ion batteries that create new risks and new propulsion technologies resulting from environmental protection ambitions. 

“And, of course, climate change and new weather events are also making themselves known to insurers,” he said. 

“Added to this, we are managing new types of risk such as cyber and having to deal with the accumulation of risk as cargo of increasing value is being stored in single port facilities or is being carried on vessels that continue to grow in capacity.”