Report on Marine Insurance Premium 1998 and 1999

Report on Marine Insurance Premium 1998 and 1999

Tore Forsmo

The Central Union of Marine Underwriters

Oslo, Norway

Thanks also to

Fédération Française des Sociétés

d’Assurances (FFSA) – Direction des

Assurances Transports (DMAT)

Tore Forsmo

The Central Union of Marine Underwriters

Oslo, Norway

Thanks also to

Fédération Française des Sociétés

d’Assurances (FFSA) – Direction des

Assurances Transports (DMAT)

0

1 000

2 000

3 000

4 000

5 000

6 000

1970 1980 1990 1998 1999 2000

Crude oil and products Five major bulks Other dry

Millions of tons loaded

Graph 1

Source : UNCTAD

Key indicatorsWorld Seaborn Trade(1999: estimate - 2000: forecast)

Oil tankers41231

50%

7%

9%10%

24%

Oil tankers Dry bulk carriers General cargo Container ships Other ships

Graph 2 Source : UNTACD - Lloyd's Maritime Information Services (London)

Key IndicatorsWorld Tonnage on Order(in thousands of dwt as per 31.12.98)

Greece17.90%

Sweden2.87%

Germany3.72%

Hong-Kong (China)4.50%

China5.29%

Japan13.07%

Greece17.90%

Norway7.46%

United States6.29%

Republic of Korea3.47%

Graph 3

Source : UNTACD - Lloyd's Maritime Information Services (London)

Key IndicatorsThe Most Important Maritime Countries (total dwt tonnage > 20 Mio) (in % of world total dwt tonnage, 31.12.98)

Table 1 Share of world trade generated,in terms of value

Share of world fleet beneficiallyowned, in terms of value

United States 14.90 6.29

Germany 9.20 3.72

Japan 6.10 13.07

United Kingdom 5.40 2.74

France 5.40 0.64

Italy 4.20 1.65

Canada 3.80 0.14

Hong-Kong (China) 3.30 4.50

Netherlands 3.50 0.75

Belgium - Luxembourg 3.00 1.06

Source : UNCTAD - WTO

Key IndicatorsMaritime Engagement of 10 Major Trading Nations (as per 31.12.98)

Table 2 National flag Total foreign flag fleet Total fleet

Thousanddwt

No. ofvessels

% dwtThousand

dwtNo. of

vessels% dwt

Thousanddwt

No. ofvessels

Greece 42 779 800 33% 87 056 2 353 67% 129 835 3 153

Japan 19 235 854 20% 75 553 2 107 80% 94 788 2 961

Norway 29 159 893 54% 24 955 732 46% 54 114 1 625

United States 11 264 472 25% 34 359 818 75% 45 623 1 290

China 21 979 1 592 57% 16 368 472 43% 38 347 2 064

Hong-Kong (China) 5 775 106 18% 26 877 467 82% 32 652 573

Germany 9 369 599 35% 17 631 1 193 65% 27 000 1 792

Republic of Korea 7 104 436 28% 18 062 428 72% 25 166 864

Sweden 1 330 159 6% 19 460 244 94% 20 790 403

United Kingdom 6 093 388 31% 13 800 457 69% 19 893 845

Source : UNCTAD / Lloyd's Maritime Information Services (London)

Key IndicatorsShare of National Flag of the 10 Largest Maritime Countries (as per 31.12.98)

Report on marine insurance premiums 1998 and 1999

By end of August 2000, 44 of 54 associations have reported premium figures

Not all were able to produce figures for both accounting years 1999 and 1998

Reported figures represent approx. 95% of the total marine premium written by all IUMI members for 1998 and approx. 79% for 1999

Total premiums for 1998 is estimated to reach approx. USD 12.7 billion and for 1999 approx. USD 10.7 billion

By end of August 2000, 44 of 54 associations have reported premium figures

Not all were able to produce figures for both accounting years 1999 and 1998

Reported figures represent approx. 95% of the total marine premium written by all IUMI members for 1998 and approx. 79% for 1999

Total premiums for 1998 is estimated to reach approx. USD 12.7 billion and for 1999 approx. USD 10.7 billion

Global premiums reported 1998 and 1999

0 2000 4000 6000 8000 10000 12000 14000

USD (millions)

Total

Offshore / Energy

Marine Liability

Transport / Cargo

Global Hull

1999

1998

1997

Report on marine insurance premiums (USD billions)

Global premiums 1997-1999 (as rep. per end of August 2000)

Global Hull Transport/Cargo Marine Liability Offshore/Energy Total1999 2,188 4,725 0,777 0,608 8,4191998 3,056 7,340 0,874 0,705 12,1121997 3,557 7,747 0,955 0,884 13,143

Index 97-98* 89 % 99 % 92 % 80 % 94 %Index 98-99* 89 % 87 % 93 % 91 % 88 %

*Index based on figures from Associations who have reported in both years

Report on marine insurance premiums - Breakdown by economic areas(USD million)

Region Premiums Premiums Premiums Variation Variation Market share Market share Market share 1999 1998 1997 97-98 98-99 1999 1998 1997

Europe 6 306 227 7 289 581 7 879 510 92,51 % 86,51 % 74,91 % 60,18 % 59,95 %Asia/Pacific 429 255 2 791 345 3 190 121 87,50 % 15,38 % 5,10 % 23,05 % 24,27 %North America 1 314 014 1 587 852 1 466 661 108,26 % 82,75 % 15,61 % 13,11 % 11,16 %Rest of the world 369 124 443 321 606 241 73,13 % 83,26 % 4,38 % 3,66 % 4,61 %

Global Marine Premium 1992 - 1999 (USD Million)

02000400060008000

1000012000140001600018000

1992 1993 1994 1995 1996 1997 1998 1999

Accounting Year

Global Hull

Cargo

Liability

Energy

Total

02000400060008000

1000012000140001600018000

1992 1993 1994 1995 1996 1997 1998 1999

Accounting Year

Global Hull

Cargo

Liability

Energy

Total

0

200

400

600

800

1000

1200

1400

1992 1993 1994 1995 1996 1997 1998 1999

Accounting Year

France

Italy

Japan

Norway

Spain

UK (ILU/IUA)

UK (LUA)

USA0

200

400

600

800

1000

1200

1400

1992 1993 1994 1995 1996 1997 1998 1999

Accounting Year

France

Italy

Japan

Norway

Spain

UK (ILU/IUA)

UK (LUA)

USA

Global Hull Premium - Major Markets 1992 - 1999 (USD Million)

Global Cargo Premium - Major Markets 1992 - 1999 (USD Million)

0

500

1000

1500

2000

2500

1992 1993 1994 1995 1996 1997 1998 1999

Accounting Year

BelgiumChinaFranceGermanyItalyJapanNetherlandsSpainSwedenSwitzerlandUK (ILU/IUA)UK (LUA)USA

0

500

1000

1500

2000

2500

1992 1993 1994 1995 1996 1997 1998 1999

Accounting Year

BelgiumChinaFranceGermanyItalyJapanNetherlandsSpainSwedenSwitzerlandUK (ILU/IUA)UK (LUA)USA

Gross calls P&I premium (International Group) 1995 to 1999Per country (fiscal domicile)

Source: Standard & Poor’s Mutual Marine Report, Edition 2000

Country 1999 1998 1997 1996 1995 Difference 99-95

Average annual variation over the

period (95-99)1999 1995

Bermuda 814 028 805 907 882 999 949 197 917 893 -103 865 -2,83 % 1 1Japan 122 224 114 511 122 047 123 428 139 922 -17 698 -3,16 % 5 6Luxembourg 211 901 224 662 231 345 233 009 245 511 -33 610 -3,42 % 4 4Norway 362 656 375 778 422 450 427 816 480 876 -118 220 -6,15 % 3 3Sweden 61 717 77 932 96 092 108 655 186 768 -125 051 -16,74 % 6 5UK 675 867 638 327 609 100 593 000 554 124 121 743 5,49 % 2 2USA 29 221 24 822 30 427 34 618 34 656 -5 435 -3,92 % 7 7Sum total 2 277 614 2 261 939 2 394 460 2 469 723 2 559 750 -282 136 -2,76 %

Ranking

Per accounting year - USD 1000

Gross calls P&I premium (International Group) 1995 to 1999Per country (operational location)

Source: Standard & Poor’s Mutual Marine Report, Edition 2000

Per accounting year - USD 1000

Country 1999 1998 1997 1996 1995 Difference 99-95

Average annual variation over the

period (95-99)1999 1995

Bermuda 80 499 82 808 77 436 69 989 66 093 14 406 -5,45 % 4 5Japan 122 224 114 511 122 047 123 428 139 922 -17 698 -3,16 % 3 4Norway 362 656 375 778 422 450 427 816 480 876 -118 220 -6,15 % 2 2Sweden 61 717 77 932 96 092 108 655 186 768 -125 051 -16,74 % 5 3UK 1 621 297 1 586 088 1 646 008 1 705 217 1 651 435 -30 138 -0,46 % 1 1USA 29 221 24 822 30 427 34 618 34 656 -5 435 -3,92 % 6 6Sum total 2 277 614 2 261 939 2 394 460 2 469 723 2 559 750 -282 136 -2,76 %

Ranking

Report on marine insurance premiums - Accounting year 1998 (in USD 1000)

Name of association GLOBAL HULL TRANSP./ MARINE OFFSHORE/ TOTALCARGO LIAB. ENERGY

Australia (Ins. Council of Australia) 48 000 85 000 15 000 2 000 150 000Austria (Österreichischer Transp.vers-Verband) 0 87 626 0 0 87 626Belgium (ABAM/BVT Belgian Association of Marine Insurers) 17 809 124 705 0 0 142 514Bermuda (Bermuda Institute of Marine Underwriters) not rep.Bulgaria (Bulstrad Plc.) 1 280 724 20 0 2 024Canada (Canadian Board of Marine U.wrs) 31 028 72 723 0 0 103 752China (The Non-Life Ins. Ass. of the Republic of China) 54 296 136 866 0 0 191 162Congo not rep.Croatia (Croatian Ins. Bureau) NA NA NA NA 29 500Cyprus (Insurance Assocn. of Cyprus) 84 5 031 474 0 5 590Czech Rep. (Ceska Pojistovna) 972 7 200 0 0 8 172Denmark (Foreningen af Danske Søassurandører) 64 550 46 460 0 0 111 010Egypt (Ins. Federation of Egypt) 17 000 36 000 NA 18 000 71 000Finland (Finnish Marine Underwriters Ass.) 22 210 46 887 196 0 69 293France (AFTAS) 340 156 697 577 4 961 38 993 1 081 687Germany (Gesamtverband der Deutschen Versicherungswirtschaft e.V.) 98 257 1 177 653 0 0 1 275 911Greece (Assocation of Insurance Companies - Greece) 13 753 35 009 3 280 0 52 041

Report on marine insurance premiums - Accounting year 1998 (in USD 1000)

Hong Kong (The Marine Ins. Association) 38 140 117 680 0 0 155 820Hungary (Association of Hungarian Insurance Co.) NA NA NA NA 10 104India (Tariff Advisory Committee) not rep.Indonesia (Insurance Council of Indonesia - Dewan Asuransi Indonesia) 12 550 31 772 0 0 44 322Ireland (The Irish Institute of Marine Underwriters) 4 200 15 000 600 0 19 800Israel (Israel Insurance Association) 6 500 3 300 0 0 9 800Italy (ANIA - Associaz. Naz. fra le Imprese Assicur.) 266 450 499 062 15 596 16 271 797 379Ivory Coast ( Ass. des Sociétés d'Assurances de Côte d'Ivoire) 1 378 13 438 0 0 14 817Japan (The Marine & Fire Ins. Assocation of Japan) 499 092 1 743 882 34 276 21 422 2 298 672Kenya (Assocn. of Kenya Insurers) not rep.Korea, Dem. Peoples Rep. (Korea Foreign Ins. Co.) not rep.Korea, Republic (Korea Non-life Ins. Assocn.) not rep.Malaysia (General Ins. Association of Malaysia) 32 236 69 132 NA NA 101 368Morocco (Comité des Assureurs Maritime du Maroc CAMM) 24 517 22 016 0 0 46 533Mexico ( Zurich) 54 214 17 13 298Netherlands (Association of Dutch Insurers 46 200 164 700 27 900 NA 238 800New Zealand (Ins. Council of New Zealand) 14 884 22 011 891 0 37 786Nigeria not rep.Norway (The Central Union of Marine U.wrs.) 295 900 53 000 252 300 69 900 671 100

Name of association GLOBAL HULL TRANSP./ MARINE OFFSHORE/ TOTALCARGO LIAB. ENERGY

Report on marine insurance premiums - Accounting year 1998 (in USD 1000)

Pakistan (Ins. Assocn. of Pakistan) not rep.Poland (Warta Ins. and Reins. Company S.A.) 13 772 22 695 9 670 305 46 441Portugal (Associacão Portuguesa de Seguradores) 15 670 31 608 2 137 0 49 415Romania (National Union of Ins. and Reins. Co.) 5 058 2 143 0 0 7 201Russia (by Ingosstrakh Insurance Co.) 16 500 48 450 9 500 0 74 450Singapore (General Ins. Assoc. of Singapore) not rep.Slovenia (Slovenian Insurance Association) 691 7 035 212 0 7 938South Africa (Assoc. of Marine Underwriters in South Africa) NA NA NA NA 97 768Spain (Comité de Transportes de UNESPA) 116 127 193 099 0 0 309 225Sweden (Sjöassuradörernas Förening) 63 811 102 320 27 386 900 194 417Switzerland (Swiss Assocn. of Marine U.wrs.) 3 597 177 373 13 516 0 194 486Thailand (The General Insurance Associattion) not rep.Tunisia (FTUSA - Fédération Tunisienne des Sociétés d'Assurances) 3 676 10 890 502 146 15 214Turkey (Ass. of the Ins. and Reins. Companies of Türkiye) 22 095 81 284 NA 0 103 380United Arab Emirates (Emirates Insurance Assocation) 47 53 7 0 107United Kingdom (IUA - Int. Underwriting Association) 185 616 137 513 51 837 133 128 508 095United Kingdom (Lloyd's Underwriters Assocation) 342 420 403 755 150 443 295 364 1 191 981United States of America (American Institute of Marine Underwriters) 315 200 807 200 253 300 108 400 1 484 100Total sum 3 055 778 7 340 086 874 021 704 842 12 112 098 = 95 %

Name of association GLOBAL HULL TRANSP./ MARINE OFFSHORE/ TOTALCARGO LIAB. ENERGY

Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ TotalCargo Liability Energy

Australia (Insurance Council of Australia Ltd.) 46 800 93 000 15 000 2 000 156 800Austria (Verband der Versicherungsunternehmen Oesterreichs) 0 84 385 0 0 84 385Belgium (ABAM_/BVT Belgian Association of Marine Insurers) 12 486 93 876 0 0 106 362Bermuda (Bermuda Institute of Marine Underwriters) not rep.Bulgaria (BULSTRAD Insurance and Reinsurance PLC) 1 100 422 20 0 1 542Canada (The Canadian Board of Marine Underwriters) 35 841 59 973 0 0 95 814China (The Non-Life Ins. Ass. of the Republic of China) 48 856 117 925 0 0 166 781Congo (Société Nationale d'Assurances SONAS) not rep.Croatia (Croatian Insurance Bureau) NA NA NA NA 25 000Cyprus (Insurance Association of Cyprus) 104 4 732 467 0 5 302Czech Republic (Ceska Pojistovna AS) 267 4 150 0 0 4 417Denmark (Foreningen af Danske Soeassurandoerer) NA NA NA NA NAEgypt (Insurance Federation of Egypt)Finland (Finnish Marine Underwriters' Association) 26 656 41 056 168 0 67 881France (AFSAT-Ass.Francaise des Sociétés d'Ass.Transports) 347 382 659 169 2 666 64 178 1 073 395Germany (Gesamtverband der Deutschen Versicherungswirtschaft e.V.)75 972 957 185 1 033 157Greece (Greece Association of Insurance Companies-Greece) 9 412 33 208 2 612 0 45 231

s. 98: Accounting Year = 01.juli 98 - 30.juni 99

Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

Hong Kong (The Hong Kong Federation of Insurers) 28 920 97 130 0 0 126 050Hungary (Association of Hungarian Insurance Companies) NA NA NA NA 8 138India (Tariff Advisory Committee) not rep.Indonesia (Insurance Council of Indonesia) 16 579 33 794 0 0 50 372Ireland (The Irish Institute of Marine Underwriters) 4 100 15 600 650 0 20 350Israel (Israel Insurance Association) 6 500 29 500 0 0 36 000Italy (ANIA-Associazione Nazionale fra le Imprese Assicuratrici) 191 495 336 756 14 217 5 486 547 954Ivory Coast ( Ass. des Sociétés d'Assurances de Côte d'Ivoire ASA-CI)NA NA NA NA NAJapan (The Marine and Fire Insurance Association of Japan, Inc. NA NA NA NA NAKenya (The Association of Kenya Insurers) not rep.Korea, (Korea Foreign Ins. Co.) not rep.Korea, (Korea Non-life Ins. Assocn.) not rep.Malaysia (General Ins. Association of Malaysia) 23 354 62 697 NA NA 86 051Morocco (Comité des Assureurs Maritime du Maroc CAMM ) 20 290 19 503 0 0 39 793Mexico (Zurich) 27 124 8 6 165Netherlands (Association of Insurers) 39 100 139 600 27 600 NA 206 300New Zealand (Insurance Council of New Zealand) 13 857 20 492 829 0 35 178Nigeria (Nigerian Insurers Association) not rep.Norway (The Central Union of Marine Underwriters) 252 600 50 100 235 000 63 200 600 900

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

Report on marine insurance premiums - Accounting year 1999 (in USD 1000)

Pakistan (Insurance Association of Pakistan) not rep.Poland ("WARTA" Insurance & Reinsurance Company Ltd.) 8 866 13 269 6 841 250 29 226Portugal (Associacão Portuguesa de Seguradores) 13 164 27 697 1 795 0 42 656Romania (National Union - Insurance and Reinsurance Comp.) 2 506 1 907 161 0 4 574Russia (Russia Ingosstrakh Insurance Company Ltd.) 18 400 54 500 10 100 0 83 000Singapore (General Insurance Association of Singapore) not rep.Slovenia (Slovenian Insurance Association) 603 5 010 201 0 5 814South Africa (Association of Marine Underwriters in South Africa) NA NA NA NA 87 991Spain (Comité de Transportes de UNESPA) 98 702 162 478 0 0 261 180Sweden (Sjöassuradörernas Förening) 57 000 122 500 29 245 1 000 209 745Switzerland (Swiss Association of Marine Underwriters) 3 644 160 870 12 086 0 176 600Thailand (The General Insurance Association) not rep.Tunisia (Fédération Tunisienne des Sociétés) 3 354 8 569 429 730 13 083Turkey (Ass. of the Ins. and Reins. Companies of Türkiye) NA NA NA NA NAUnited Arab Emirates ( Emirates Insurance Association) 49 57 7 0 113United Kingdom (Int'l Underwriting Association of London - IUA) 162 969 123 945 37 794 100 756 425 463United Kingdom (Lloyd's Underwriters' Association.) 338 733 442 343 163 770 292 808 1 237 654U S A (American Institute of Marine Underwriters) 278 200 647 100 215 800 77 100 1 218 200Total sum 2 187 888 4 724 621 777 468 607 514 8 418 619 = 79 %

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy