IUMI reports improvements for the cargo insurance sector

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The International Union of Marine Insurance (IUMI) has reported an increase in the 2020 cargo insurance premium base (from 2019) of 5.9% to USD 17.2 billion alongside an improvement in overall loss ratios.

Speaking at this year’s conference online from Seoul, Isabelle Therrien, Chairperson of the IUMI Cargo Committee (pictured) said, “We are continuing to see correction in the cargo insurance market (albeit at a lesser pace than in previous years) with a strengthening of the premium base and an improvement in our profitability. We’ve worked hard to inject some much-needed sustainability into our sector, but conditions are fluid and there are many factors we need to be aware of.

“On the positive side, world trade recovery is well underway and forecasts project that larger economies such as China and the USA will lead the way. Since the fortunes of the cargo sector tend to mirror global trade, this is good news for cargo underwriters. However, the frailties in global supply chains exposed by COVID are likely to result in a re-organisation and, perhaps, a move to bring manufacturing bases closer to consumers. Inevitably this will impact our business”.

Other factors bringing uncertainty to global cargo insurance included the effects of climate change and, in particular, an increase in nat cat events such as heavier weather at sea affecting the stability of container stacks on large vessels. A shift is also expected in the way the industry will embrace digitalization and insurers should prepare for how it will affect the future of cargo underwriting.

Read more on this report here.