Technological advances in the shipping industry are raising new concerns, alongside risks associated with operating ever-larger vessels, the International Union of Marine Insurance (IUMI) says.

“IUMI is… concerned about advances in the digital applications involved with naval architecture and the operation of vessels – particularly crew training and their ability to manage cutting-edge technology and large amounts of data,” the union says.

There is evidence collision frequency is increasing, possibly due to the introduction of new technology, IUMI says in a market update for its spring conference in Hamburg.

The hull casualty frequency of total losses within the past three years has stabilised, but market concerns remain.

“The global premium base has been eroding year on year as a result of reduced asset values, reduced activity in some sectors, and reduced premium rates,” Ocean Hull Committee Chairman Mark Edmondson says. “Increasing values of single risks bear the potential risk of new record losses, and attritional losses are a growing concern.”

The cargo market is improving and stabilising but remains highly competitive with an abundance of capacity.

“As underwriters, we are being challenged to improve our approach and utilise tools such as third-party data, sensor technology and predictive analytics,” Cargo Committee Chairman Sean Dalton says.

He warns the recent NotPetya ransomware attack on shipping company Maersk “highlights potential cyber exposures and consequences”.