IUMI issues Spring Statistics: Major losses continue to concern
Friday, 13 April 2012 10:13


The increase in the level of the serious losses to the global shipping fleet has continued in 2011, according to the latest figures on the global marine and energy insurance markets.

The International Union of Marine Insurance (IUMI), the organization which represents the global marine insurance sector, has issued its Spring Statistics which provide a comprehensive view of the scale and size of the global marine and energy markets and the current claims trends for 2011.

While the number of major incidents remains consistent with the trend experienced over the previous 4 years, the back year figures continue to deteriorate with the likelihood that the past year will follow a similar path.

There have been 591 serious losses reported to date in 2011, which is slightly down on the figure of 623 reported a year ago for 2010. However, the 2010 figure has deteriorated to 691 to date.
The major cause of serious losses remains ‘machinery damage and engine room problems’, accounting for 35.43% of incidents over the last five years. In total, 50% of all major serious incidents reported have occurred to vessels in excess of 20 years of age.

In terms of the world shipping statistics, the number of total losses recorded for 2011 stands, at present, at 55, which is down from the 63 total losses reported by IUMI 12 months ago for 2010.  However, the 2010 year has since deteriorated. The number of reported total losses has increased for the year from 63 to 87, and for 2009 from 67 to 86.  The concern is that this might suggest that 2011 will eventually return a similar number to both of the preceding years.

IUMI’s offshore drilling units statistics were defined by an increase in attritional losses. 2011 saw a sharp spike in attritional rig losses, while the number of rig losses over $1 million is projected to reach an all-time high.  

IUMI secretary General Fritz Stabinger says: “This is a troubling statistic because it raises the question of adequacy of deductibles.  Mobile rigs are larger and more complex than ever before.  Rig values have risen sharply and the underwriters need to be cognizant of the rising attritional loss rate, which prevents offshore underwriters from building a ‘premium bank’ to pay for the catastrophe losses which may be just around the corner.”

The size of the world drilling fleet reached a new all time high of 808 in 2011, a rise for the eighth consecutive year.  The fleet size has increased 24% over the past decade, with the vast majority of new builds deepwater-capable rigs.

The statistics show the world tanker fleet has grown but at a lower rate than in the previous 12 months, with only 500 (625 for 2010) vessels delivered. This again is a reduced number relative to 2009.  The number of tankers scrapped reduced by almost 50% to 150 from a figure of 270 in 2010. The bulker fleet also grew both in number and in DWT. Deliveries reached a record high both in number and DWT.  In 2011 1,200 vessels were delivered in 2011 compared to 957 during the previous 12 months. The container and multipurpose fleet also grew ever so slightly in 2011 despite another reduction in the number of new buildings being completed relative to 2010.

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