Engineering InsurancePremium and Loss Statistics
2015 - 2017
presented by Dieter Spaar, IMIA
4rd to 6th September 2018Singapore
The International Association of Engineering Insurers
By Daniel Yao - Taipei, Taiwan
8,879 8,466 8,254
306265 222
2015 2016 2017
IDIall other LoB
Development of Engineering Premium 2015 – 2017 all IMIA Members (“reported”)
2
US$ Million
- 5.1 % -2.9 %
Change of total in %
9,203 8,731 8,476+ 5.7 %
0
2500
5000
7500
10000
2015 2016 2017
countries 2017Countries 15,16,17
Development of Engineering Premium 2015 – 2017 comparison (“members reported 2017 only”)
3
US$ Million
+ 7,8%
-0,9 %
9,203 8,731 8,4767,932 7,860
8,476
3,771 3,618 3,488
4,003 3,785 3,736
1,1241,063 1,031
306265 221.5
2015 2016 2017
IDI
EEI
MB, BE, LoP
CAR, EAR,ALoP
9,203 8,7318,476
Development of Premiums 2015 – 2017per Line of Business
% of total premium
(41.0)
(43.5)
(41.4) (41.1)
(43.4) (44.1)
(12.2)
(3.3)(12.2)(3.0)
(12.2)
(2.6)
4
US$ Mill
85.09129.13
177.15209.73215.08238.65
273.5347.26348.58353.36371.34
428.07498.71499.62506.61
570.27631.74
753.96762.04
0 500 1000 1500
Brazil
Taiwan
South Africa
Austria
South Korea
UK
Australia
India
France
Switzerland
Netherlands
Italy
Mexico
Russia
Turkey
Spain
Canada
Japan
USA
Germany
in 2016
Premiums and Claims 2017 per Country (excl. IDI)US$ Mill Loss Ratio (%)
2015 2016 2017
ClaimsPremiums
5
4339255345
-835050506280
-16
1134721383670
6078366349355341455356552450
1082933622867
6062414854496447375091735334
109302672 3469
in 2016
12.49
19.15
61.14
160.65
0 50 100 150 200
France
Taiwan
Brazil
South Africa
Austria
Nethlands
South Korea
Australia
Uk
Switzerland
India
Italy
Russia
Turkey
Spain
Mexico
Canada
Japan
USA
Germany
0
12
3
34
IDI - Premiums and Claims 2017 per Country US$ Mill
Loss Ratio (%)2015 2016 2017
ClaimsPremiums
6
Note:Only two countries reported IDI premium and losses
20
12
4,633 4,771 4,521 50.3 54.6 53.3
8.4 8.4 9.00
102030405060708090
100
2015 2016 2017
9,203 8,731 8,476
772 732 761
2015 2016 2017
7
Premiums / Claims / Large Claims – Total Amount Loss Ratios – all Lines of Business (LoB) 2015 - 2017
US$ MillClaims total
Large Claims
Claims totalPremiums
Large Claims
*)
*) Note: Large Claims >= 1.0 Mill US$
Loss Ratios for all claims and large claims in %
1,973 2,017 2,142
4,003 3,785 3,736
267 210 195
2015 2016 2017
49.3 53.3 57.3
6.7 5.5 5.20
102030405060708090
100
2015 2016 2017
8
US$ Mill
Premiums / Claims / Large Claims Loss Ratios – MB, BE, LoP, O 2015 - 2017
Claims totalPremiums
Large ClaimsClaims total
Large Claims
Loss Ratios for all claims and large claims in %
*)
*) Note: Large Claims >= 1.0 Mill US$
2,021 2,0731,709
3,771 3,618 3,488
461 450 563
2015 2016 2017
9
Premiums / Claims / Large Claims Loss Ratios – EAR, CAR, ALoP 2015 – 2017
US$ Mill
53.6 57.349.0
12.2 12.4 16.2
0102030405060708090
100
2015 2016 2017
Claims totalPremiums
Large ClaimsClaims totalLarge Claims
Loss Ratios for all claims and large claims in %
*)
*) Note: Large Claims >= 1.0 Mill US$
653 659 639
10
Premiums / Claims / Large Claims Loss Ratios – EEI 2015 - 2017
US$ Mill
3.9 5.3 0
58.1 62.0 62.0
0.0
20.0
40.0
60.0
80.0
100.0
2015 2016 2017
Claims totalPremiums
Large ClaimsClaims total
Large Claims
Loss Ratios for all claims and large claims in %
*)
*) Note: Large Claims >= 1.0 Mill US$
1,124 1,063 1,031
44 56 02015 2016 2017
-14
21 32
11
Premiums / Claims / Large Claims Loss Ratios – IDI 2015 - 2017
-4.0
8.014.3
0 6.1 1.3
-10
0
10
20
30
40
50
2015 2016 2017
US$ Mill Claims totalPremiums
Large ClaimsClaims totalLarge Claims
Loss Ratio for claims total and large claims in %
*)
*) Note: Large Claims >= 1.0 Mill US$
306266
222
0 16 32015 2016 2017
73 70101
64 55
114 121
129
72 100
9 5
18
26
0 0
0
1 2
0
50
100
150
200
250
300
2013 2014 2015 2016 2017
Number of Large Claims per LoB 2013 - 2017
IDI EEICAR EAR ALoPMB BE LoP
Total Engineering196 196
248
163 157
0
050
100150200250300350400450500
2013 2014 2015 2016 2017
A) Faulty OperationB) Faulty Material and
Workmanship
C) Faulty DesignD) Fire
E) ExplosionF) Natural Hazards
Large Claims - Cause of Loss: all LoB 2013 - 2017
13
G) Other Causes
US$ Mill
14
US$ Mill
25.6 18.5 0.010.0
0.0 4.2 1.4 0.0
134.9
020406080
100120140
A B C D E F G H I
A) Faulty OperationB) Faulty Material and
Workmanship
C) Faulty DesignD) Fire
E) ExplosionF) Storm
G) Flood and InundationH) EarthquakeI) Others
Large Claims - Cause of Loss: MB, BE, LoP, O 2017
20 74 9 15 1 51 58 8
327
0
50
100
150
200
250
300
350
A B C D E F G H I
15
US$ Mill
Large Claims - Cause of Loss: EAR, CAR, ALoP2017
A) Faulty Operation C) Faulty DesignD) Fire
E) ExplosionF) Storm
G) Flood and InundationH) EarthquakeI) Others
B) Faulty Material andWorkmanship
0 0 0 0 0 0 0 0 00
10
20
30
40
50
60
A B C D E F G H I
16
US$ Mill
Large Claims - Cause of Loss: EEI 2017
A) Faulty Operation C) Faulty DesignD) Fire
E) ExplosionF) Storm
G) Flood and InundationH) EarthquakeI) Others
B) Faulty Material andWorkmanship
None reported
17
0
1.39
0 0 0 0 0
1.50
00
1
2
3
4
5
US$ Mill
BA C D E F G H I
Large Claims - Cause of Loss: IDI 2017
A) Faulty Operation C) Faulty DesignD) Fire
E) ExplosionF) Storm
G) Flood and InundationH) EarthquakeI) Others
B) Faulty Material andWorkmanship
Large Claims – Main Items affected per LoB 2017
1805
122 3
119
44
016
40 80 91
116
0
138
98
30
20406080
100120140160180200220240260
A) Turbo Generator SetsB) Boilers and Pressure VesselsC) Compressors and other mechanical plantsD) Electrical Machines and Equipment
F) Lifting and TransportationEquipment
G) Chemical Plants
H) Electronic EquipmentI) Civil Engineering WorksJ) Erection of Plants
E) Production Machinery and Process Equipment
K) Other Property
US$ Million
MB. BE. LoP EAR. CAR. ALoP EEI IDI
18
A B C D E F G H I J K A B C D E F G H I J K A B C D E F G H I J K A B C D E F G H I J K
263
None reported
19
Key to the abbreviationsALoP Advance Loss of Profits (DSU)BE Boiler ExplosionCAR Contractor‘s All RisksEAR Erection All RisksEEI Electronic Equipment InsuranceIDI Inherent Defects (Decennial) InsuranceLoB Line of BusinessLoP Loss of Profits (MLoP) MB Machinery BreakdownO Others (Operational, CPM)
Please noteAll figures are based on information supplied to IMIA by its Member countries. It should be borne in mind that these figures may not always contain IBNR provisions, and that premium patterns may vary between reporting member countries and companies.Inherent Defects Insurance (IDI), also called Decennial Insurance in French speaking countries, is written only in a few countries. It is a compulsory class of business in some of these. Due to the different legal situation and others specifics, the scope of cover varies greatly from country to country. Therefore any attempt to make comparisons is very difficult and may lead to wrong conclusions. Since IDI contracts grant cover for material damage caused by latent defects for a period of (usually) ten years as from completion of the contract works, special attention needs to be given to the issue of premium earning patterns during the policy duration. These patterns vary considerably from country to country and are even regulated in some of them by the insurance supervisory body. IMIA is not in a position to reflect the various regulations governing the administration of this line of business in the various countries nor can IMIA validate the method used by its members in establishing their figures.Therefore IMIA recommends to adopt particular care when drawing conclusions from premiums, claims figures and loss ratios reported herein especially in respect of IDI. For further details it is recommended to contact the IMIA-delegate from a particular member country to obtain more accurate information on the particulars of a specific line of business in his country.
