Beyond the Horizon: Emerging Marine Insurance Claims Trends You Need to Know

The world of maritime trade is a vital artery of global commerce. Ships traverse vast distances, transporting essential goods and keeping international markets connected. However, this complex and dynamic environment also presents inherent risks. It is essential to understand the importance of staying ahead of emerging trends in marine insurance claims. By anticipating these trends, businesses involved in the maritime industry can make informed decisions to mitigate risk and protect their valuable cargo.

Top Causes of Claims by Value in Marine Insurance

Here are some of the key trends impacting marine insurance claims:

Fire is the top cause of claims by value, as Li-ion batteries add a new loss dimension

Traditionally, sinking and collision were the leading causes of marine insurance losses. However, recent years have seen a dramatic rise in fire claims, accounting for the highest value of claims globally. This trend is partly attributed to the increasing use of lithium-ion (Li-ion) batteries to power modern ships and electronic devices on board. In contrast, Li-ion batteries offer significant efficiency benefits but pose a unique fire risk. These batteries can overheat and spontaneously combust, leading to devastating fires that are difficult to extinguish at sea.

Inflation and exposure growth drive claims severity

The global economy has experienced significant inflation in recent years. This inflation increases repair and replacement costs for damaged vessels and cargo. Furthermore, the overall value of goods transported by sea continues to rise. These factors increase the severity of marine insurance claims, even when the frequency of incidents remains stable.

Cargo claims continue to rise

Cargo damage remains a major source of claims in marine insurance. This can be attributed to various factors, including:

• Improper packing and securing of cargo: Inadequate packaging can leave cargo vulnerable to damage during transport.
• Shifting cargo during rough seas: Rough weather and turbulent seas can cause cargo to shift and collide within the vessel, leading to damage.
• Thefts and pilferage: Cargo theft remains a concern, especially at vulnerable points in the supply chain.

Supply chain exposures and disruption continue to impact

The global pandemic exposed vulnerabilities in international supply chains. Congestion at ports, delays in shipping, and labor shortages continue to disrupt smooth maritime operations. These disruptions can increase the chances of cargo damage due to longer transit times and improper handling.

Climate risks contribute to claims

The increasing frequency and intensity of extreme weather events due to climate change pose a growing threat to maritime safety. More frequent storms, hurricanes, and rising sea levels can lead to shipwrecks, groundings, and cargo damage. Understanding and mitigating these climate-related risks is crucial for marine insurance providers and businesses alike.

Partner with GrayStone Insurance Group for Quick Settlement of Marine Insurance Claims

At GrayStone Insurance Group, we are committed to providing comprehensive marine insurance solutions tailored to your specific needs. Our experienced agents can develop a risk management strategy that minimizes your exposure to potential losses and ensures your business remains protected throughout its journey. Don't let unforeseen circumstances disrupt your maritime operations. Contact us today to secure the coverage you need to navigate the seas confidently. Call us at (866) 988-3709 if you have any queries.

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