Insurance Jottings
Cefor releases 2018 marine hull claims trends from the Nordic Marine Insurance Statistics (NoMIS) database, elects new Chair and members of the Board
Sea of tranquillity?
“2018 was the third consecutive year with an exceptionally low claim cost, but the start of 2019 could mark the end of this’, says Helle Hammer, Managing Director of Cefor.
“Following an extraordinary three-year period without claims in excess of US$30 million, which also should be seen in the context of low insured values in the same period, the situation seems to turn in 2019.
“Two of a number of severe casualties which incurred in the period January to March 2019 are partly covered by the Cefor market and may end the three-year period without claims in excess of US$30 million’, warns Ms Hammer.
“The claims frequency has stabilised at a low level, while the total loss frequency reached a record low in 2018’, Helle Hammer continues.
“With the absence of costly total losses in the last three years, often being groundings or fire/explosion claims, a higher proportion of the overall claims cost originated from medium size to low cost claims, especially machinery.”
Coastal claims on the rise
“The positive downward trend in the claim cost per vessel for coastal and fishing vessels came to an end in 2016. Especially the grounding of the fishing vessel Northguider in Arctic waters and fires on fishing vessels cause concern”, says Ms Hammer.
Detentions beware
A new analysis by the Cefor Statistics Forum reveals a clear relationship between detentions and casualties:
“Vessels which had been detained in a three-year period prior to a claim have a higher claims frequency across all age groups and types of casualties than vessels without detention(s). Detention data is thus a clear indicator of the risk of a vessel incurring a casualty and to understand the cause of potential future casualties, as these tend to be related to the causes of the detention of the vessel.
“To utilise the information, access to detention data in an easily accessible data format is important for insurers to assist in the overall risk assessment of a fleet they insure and in their loss prevention measures”, concludes Helle Hammer.
The 2018 Annual Report and claims statistics are available from the Cefor website: www.cefor.no
About NoMIS
Since 1985, leading members of Cefor have compiled and analysed statistical information relevant to their hull & machinery insurance portfolio. The Nordic Marine Insurance Statistics database comprised more than 460,000 vessel years and 100,000 claims by the end of 2018.
Source: Cefor – The Nordic Association of Marine Insurers
Newline Group launches insurance hub in Germany
Following the authorisation from the German Federal Financial Supervisory Authority, speciality London based insurer Newline Group has announced the launch of its new European establishment in Cologne.
Newline Europe Versicherung AG (Newline Europe), a subsidiary of Newline Insurance Company, will be led by Manuel Wirtz as newly appointed CEO.
Mr Wirtz was previously Newline’s general representative for Germany. Although it remains uncertain exactly when the UK will leave the EU, the new unit in Europe is to ensure continuity of services post-Brexit.
Carl Overy, CEO of Newline group commented: “Newline’s history of underwriting German-based insurance risks dates back to 2002, so we are delighted to strengthen our footprint in Cologne and expand our platform by providing seamless and continuous service to our clients throughout Europe in the post-Brexit environment.”
Mr Wirtz added: “We are very pleased that BaFin has approved our application. We have already seen the benefit of having local underwriting and claims handling teams, and this approval will allow us to continue providing our insurance solutions in Germany as well as in our neighbouring countries in the European Economic Area.”