Maritime insurance feels flow-on from economic crisis
The global economic crisis and its stifling effect on world shipping is proving a mixed blessing for maritime insurers.
The International Union of Marine Insurance (IUMI) says shrinking insurable values will have a “direct and massive impact on world marine insurance income”.
IUMI points to a drop of 45% in world trade values from the last quarter of 2007 to the corresponding period in 2008.
However, the upside is an overall reduction in claims expenses for the past year.
IUMI Facts and Figures Committee Chairman Cedric Charpentier says early estimates show the number of total shipping losses for 2008 is down 10% on the 2007 figure – 74 compared with 82.
“Thus we might expect an ultimate figure of around 95 if we apply the normal deterioration factor because of late reporting, roughly comparable to the 2006 and 2005 years,” he said.
A total of 372,000 gross tons has so far been recorded as lost last year – a 22% drop on the 2007 figure.
A normal trend of late reporting figures could bring the 2008 total to about 470,000 gross tons, making it the second-lowest year since 1980.
The International Union of Marine Insurance (IUMI) says shrinking insurable values will have a “direct and massive impact on world marine insurance income”.
IUMI points to a drop of 45% in world trade values from the last quarter of 2007 to the corresponding period in 2008.
However, the upside is an overall reduction in claims expenses for the past year.
IUMI Facts and Figures Committee Chairman Cedric Charpentier says early estimates show the number of total shipping losses for 2008 is down 10% on the 2007 figure – 74 compared with 82.
“Thus we might expect an ultimate figure of around 95 if we apply the normal deterioration factor because of late reporting, roughly comparable to the 2006 and 2005 years,” he said.
A total of 372,000 gross tons has so far been recorded as lost last year – a 22% drop on the 2007 figure.
A normal trend of late reporting figures could bring the 2008 total to about 470,000 gross tons, making it the second-lowest year since 1980.