Too Soon for Optimism in the Ocean Hull Insurance Sector, Reports IUMI

Speaking at today’s IUMI (International Union of Marine Insurance) conference online from Seoul, Rama Chandran, chairperson on the Ocean Hull Committee expressed concern over the long-term sustainability of the hull and machinery insurance sector.

He said: “Whilst it is encouraging to see the 2020 premium base growing from the previous year alongside improvements in loss ratios, we mustn’t forget that we are operating from a very low position and that the premium base has only recently begun to creep upwards following a sustained decline since 2012. The improvement in loss ratios for 2020 largely stems from reduced shipping activity during the recent COVID period and a subsequent lack of claims.”