The 2007 CEFOR NoMIS Report Nordic Marine Insurance Statistics Underwriting Years 1995–2007, as of...

The 2007 CEFOR NoMIS Report

Nordic Marine Insurance Statistics Underwriting Years 1995–2007, as of 31 December 2007

2007 CEFOR Nordic Marine Insurance Statistics – Part 1As of 31 December 2007

Part 1 – Introduction •Contents•NoMIS•Explanations

Part 2 – NoMIS position in the Global insurance market•Global Marine Hull Insurance Market 2006•Norwegian Marine Hull Insurance Market 2007•Average gross share written in the NoMIS market

Part 3 – NoMIS portfolio Key figures, underwriting years 1995-2007 •Number of vessels•Development of average insured values, DWT and premium •Average age•Average standard deductible•Loss Ratio (including IBNR), 1985-2007•Premiums and claims (including IBNR) per vessel•Claims in claim bands – claim per vessel•Number and cost of claims by type•Claim frequency•Claim per vessel•Claim per Sum Insured•Key figures (table)


Part 4 – Key figures by age group •Distribution of number of vessels•Claim frequency•Claim per vessel•Claim per Sum Insured•Claim per DWT•Loss Ratio

Part 5 – Key figures by vessel type group•Distribution of number of vessels•Claims frequency•Claim per vessel•Claim per Sum Insured•Claim per DWT•Loss Ratio

Legal disclaimer CEFOR provides the statistics material in this presentation for general information purposes only. All key figures are derived from the CEFOR portfolio, which reflects a minor part of the world fleet, the selection of ships being biased by Norwegian underwriting preferences. Therefore CEFOR can accept no responsibility and shall not be liable for any loss which may arise from reliance upon the information provided.


Part 6 – Key figures by size group •Distribution of number of vessels•Claims frequency•Claim per vessel•Claim per Sum Insured•Claim per DWT•Loss Ratio

Part 7 – Distribution by flag and classification society •Distribution of number of vessels by flag, 16 largest•Distribution by black, grey, white flags (Paris MOU classification 2005)•Distribution of number of vessels by classification society, 6 largest

Part 8 – Premium indices •Premium per vessel – Premium per sum insured – Cash Renewal Index

Part 9 – Exposure curves (partial claims only) •Sum Insured bands (<5, <20, <100, and >100 Mio USD)•Explanations


Introduction

The Nordic Marine Insurance Statistics (NoMIS) is a joint database project of CEFOR members active on the Hull & Machinery market to compile insurance data and vessel characteristics for statistical purposes. The database is administered by CEFOR.

Since its foundation in 1985 until 1997 the data was compiled by appointing CEFOR a compulsory facultative reinsurer to which the members of the Norwegian Hull Agreement ceded 0.1% of their Hull & Machinery insurance. Premium and claims information was exchanged via Borderaux, the lead insurer providing details of each claim. When the Hull Agreement was discontinued in 1996, the statistics cooperation continued.

In 1998 steps were taken to update the NoMIS’ database electronically. All necessary routines were in place by December 1999, enabling CEFOR to produce up-to-date hull figures on a monthly basis and extending the database substantially by including non-lead business from underwriting year 1998. In 2000, the database was extended to include also non-lead business back to underwriting year 1995. In 2003, data from a major new member was integrated, dating back to underwriting year 1995. In 2004, the database was extended by data from two new members and in both 2005 and 2006 data from further members was added. This includes data written from other Nordic countries.

In 2007, the number of vessels registered per underwriting year exceeded for the first time 11,000 vessels. Compared to the world fleet, the NoMIS database covers in 2007 about 25% of the world fleet above 300 GT in terms of numbers and about 50% in terms of tonnage.

By 31st December 2007, in all 122,152 vessel years (vessels with IMO-number) and 36,766 claims were registered on underwriting years 1985 through 2007.

The NoMIS statistics in this report comprise data from: Bluewater Insurance ASA, Codan Group (Codan Marine, Denmark; Codan Marine Services, Norway; Trygg-Hansa Marine, Sweden), Gard, Gjensidige Forsikring, NEMI ASA, Norwegian Hull Club, Swedish Club, Zurich Protektor Forsikring AS.


All amounts are presented in USD.

Rate of exchange applicable to convert the figures from the original currencies into USD:Premiums: average monthly rate of exchange of the month of transaction Paid claims: average monthly rate of exchange of the month of transactionOutstanding claims: average monthly rate of exchange of December 2007

All premiums are net of all rebates and commissions.

All claims are net of any deductibles applicable.Total Claims = Paid claims + Outstanding claims

TLO (or Total Losses) = claims in excess of 75% of the Sum InsuredPartial Losses = all losses <= 75% of the Sum Insured

Loss Ratio = Total claims / Net premium

Underwriting year = year in which the insurance policy attaches


Types of vessels specified

Vessel Type group Vessels Types included Lloyds Conf. Index Code

BULK Bulk, Ore, Cement BBU, BCB, BCE, BOR, BWC

CAR/RORO Car Carrier, RoRo MVE, URC, URR

CARGO Dry Cargo, General Cargo, Reefers, GCT, GGC, GPC, GRF, MLVPallett Vessels, Animal Transport Vessels

CHEM./PRODUCT Chemical Carriers, Product / Acid / Edible Oil / TAC, TCH, TCO, TEO, TFJ, TFOFish Oil / Fruit Juice / Wine / Molasses / TMO, TPD, TWA, TWN, TWTWaste/ Water Tankers

CONTAINER Container UCC, UCR

LNG/LPG Gas Carriers LNG, LPG, LNG/LPG LNG, LPG, LNP

OBO Combined Vessels Bulk, Ore, Oil COO, CBO

OTHER all other ships and floating units all other codesnot specifically defined otherwise, likeFishing vessels, Barges, Cranes, Floating Storage,Floating Production, Pollution Control Vessels,Mud boat, Research vessels, Cable, Seismic Searchvessel, Flo/Flo, etc.


Types of vessels specified contd.

Vessel Type group Vessels included Lloyds Conf. Index Code

PASSENGER All types of passenger vessels and ferries, LOF, LOP, MPR, OFY, OHF, Passenger/Roro, Highspeed Craft OHS, PRR

SUPPL/OFF Supply, Anchorhandling, Standby, Drilling OBS, OBT, ODS, OIB, OIF, OIS, Vessel, General Service Vessel, OIT, OLT, OMN, OMT, OOS, OPP, Supply (Tug, Anchor), Tug/Icebreaker ORP, OSU, OSY, OSZ, OWO,

XAA, XAF, XAG, XAH, XAT, XCT, XFF, XFS, XPT, XTG, XTI, XTP, XTR, XTS, XTT, XTX

TANK Tanker, Sludge Vessel, Crude Oil Tanker OSC, OTC, TAS, TBK, TCR, Asphalt Carriers, Bunkering Tanker, TNA, TTANaval Auxiliary

France7.6%

Italy6.4%Japan

9.0%Korea5.4%

Spain4.1%

USA5.9%

Rest of the World28.2%

UK (IUA)5.7% UK (Lloyd's)

13.7%

Norway14.0%

Bluewater 9.5%

Coastal Marine Clubs4.3%

Gard35.0%

Gerling9.0%

Gjensidige3.7%

If2.4%

NEMI7.4%

Norwegian Hull Club24.5%

Vesta2.0%

Codan2.3%

2007 CEFOR Nordic Marine Insurance Statistics – Part 2

Distribution of Global Marine Hull Premium 2006

World Norway

(Business written from Norway only)

(Business written from Norway only)

Source of global premium figures: IUMI ”Global Marine Insurance Report, published September 2007

France7.6%

Italy6.4%Japan

9.0%Korea5.4%

Spain4.1%

USA5.9%

Rest of the World24.9%

UK (IUA)5.7%

UK (Lloyd's)13.7%

CEFOR17.3%

Bluewater 7.7%

Coastal Marine Clubs3.5%

Gard28.3%

Gerling7.3%

Gjensidige3.0%

If1.9%

NEMI6.0%

Norwegian Hull Club19.8%

Swedish Club7.1%

Vesta6.0%

Codan9.4%


Distribution of Global Marine Hull Premium 2006

World CEFOR


Distribution of CEFOR Marine Hull Premium 2007

Including Coastal Excluding Coastal

! Note:The premium overview on this slide INCLUDES Loss of hire, hull and freight interest and building risk in addition to hull.

Whereas all following statistics are pure hull statistics and EXCLUDE Loss of hire, hull and freight interest and building risk !

Bluewater 8%

Møre- og Tromstrygd

0%

Codan10%

Gard29%

Gerling6%

Gjensidige5%

If4%

NEMI6%

Norwegian Hull Club19%

Swedish Club7%

TrygVesta Marine

6%

Bluewater 9%

Codan8%

Gard35%

Gerling8%

Gjensidige0%

NEMI6%

Norwegian Hull Club

21%

Swedish Club8%

TrygVesta Marine

5%


Average share = Sum of members gross premiums according to their written share / Sum of premiums for 100% of the risk (Sum = sum over all vessels in the NoMIS portfolio)

Average share written in the NoMIS market

0%

10%

20%

30%

40%

50%

60%

All business 33% 36% 36% 36% 38% 37% 44% 41% 37% 36% 36% 35% 31%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


Comments: a) Decline in portfolio from 1997 to 2000 due to members concentrating on target business b) Increase 2000->2006 due to both market growth and new members joining the NoMIS datapool.

Database comprises business underwritten from all Nordic countries in addition to Norway.

No. of Vessels per Underwriting Year

5,5486,215

7,331 7,3456,792

6,2777,106 7,399

8,298

9,70810,222

11,54411,412

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


Evolution of average sum insured, DWT, net premium 1995=100%

0%

50%

100%

150%

200%19

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Index Average Sum Insured, 1995=100% Index Average DWT, 1995=100%Index Average Net Premium, 1995=100%


Average Age

13.013.4

13.8 14.0 13.9 13.8 13.813.6

13.1 12.9 12.612.3

12.7

8.0

10.0

12.0

14.0

16.0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007


Average Standard Deductible DevelopmentAll business, 100%, in USD

0

50,000

100,000

150,000

200,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Average Std. Deductible Av.Std. Ded. <= 500,000 USD


Hull Net Loss Ratio,as reported per 31.12.07 (2007 incl. IBNR)

98%

134%

150%151%

207%

224%

123%

74%

47% 48%54%

78%90%

124%134%

124%115%117%

98%110% 110%

100%

116%

0%

50%

100%

150%

200%

250%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

L/R est. final (2006, 2007 incl. IBNR) 100%


CBNI = Covered But Not yet IncurredIBNR = Incurred But Not yet ReportedOutstanding = Incurred and reported, but not yet paid

Premiums and claims per vessel per underwriting yearin USD 1000

0

20

40

60

80

100

120

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

CBNI

IBNR

Outstanding claims

Paid claims

Net premium

USD Claim per vessel

010,000

20,00030,000

40,00050,000

60,00070,000

80,00090,000

100,00019

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

>= 30 MUSD

10-30 MUSD

5-10 MUSD

1-5 MUSD

<= 1 MUSD


Claim bands:

Numbers (%)Inner ring: 2002-2006Outer ring: 2006

36%

2%12%19%

11%

4%1%15%

37%

2%

13%20%

10%

3%0%

15% Engine

Fire and explosion

Collision

Contact

Grounding

Heavy weather

Ice

Other


Claims by Claims type

Total 2006: 2,931

Costs (%)Inner ring: 2002-2065Outer ring: 2006

28%

11%

13%8%

25%

4%0%11% 28%

4%

10%

15%

23%

5%0%

15%Engine

Fire and explosion

Collision

Contact

Grounding

Heavy weather

Ice

Other


Claims by Claims type

Total 2006: USDm 1,056


Comment: Claims < 10.000 USD account for about half of all claims. Registration of thesemay vary over time and in each company and will thus influence the registered frequency.In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

Claim frequency per underwriting year

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

all claims 0.30 0.28 0.29 0.31 0.28 0.28 0.27 0.24 0.27 0.26 0.25 0.25 0.25

claims > 10,000 USD 0.13 0.13 0.12 0.14 0.13 0.12 0.13 0.11 0.13 0.13 0.14 0.14 0.13

claims > 500,000 USD 0.02 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.03 0.03 0.02

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20062002-2006 Av.


Claim per vessel per underwriting year

0

20,000

40,000

60,000

80,000

100,000

all claims 59,419 66,152 55,288 62,047 57,113 53,960 51,362 60,982 63,817 79,799 76,717 91,457 76,221

partial claims 44,013 50,260 39,888 53,368 50,582 40,627 39,726 39,767 49,368 65,312 66,918 71,750 60,424

TLO claims 15,406 15,893 15,400 8,680 6,531 13,333 11,636 21,216 14,448 14,487 9,799 19,707 15,797

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20062002-2006 Av.


Claim per sum insured per underwriting year

0.000%

0.050%

0.100%

0.150%

0.200%

0.250%

0.300%

0.350%

0.400%

all claims 0.315% 0.372% 0.311% 0.302% 0.287% 0.242% 0.238% 0.283% 0.290% 0.331% 0.282% 0.311% 0.301%

partial claims 0.233% 0.282% 0.224% 0.260% 0.254% 0.183% 0.184% 0.185% 0.224% 0.271% 0.246% 0.244% 0.239%

TLO claims 0.082% 0.089% 0.087% 0.042% 0.033% 0.060% 0.054% 0.099% 0.066% 0.060% 0.036% 0.067% 0.062%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20062002-2006 Av.

Inner ring: 2002-2006Outer ring: 2007

26.1%

21.1%

14.8%

12.0%

26.1%

26.7%

21.1%

16.6%

10.5%

25.1%

0-5 years

5-10 years

10-15 years

15-20 years

> 20 years

2007 CEFOR Nordic Marine Insurance Statistics – Part 4 As of 31 December 2007

Number of vessels per age group

Total number of vessels 2002-2006: 47,1712007: 11,412



Claim frequency per age group

0.0

0.1

0.2

0.3

0.4

2001-2003 0.25 0.31 0.28 0.27 0.22

2004-2006 0.23 0.30 0.28 0.26 0.23

2001-2006 0.24 0.30 0.28 0.26 0.22

0-5 years 5-10 years 10-15 years 15-20 years > 20 years


Claim per vessel per age groupin USD

0.0

20000.0

40000.0

60000.0

80000.0

100000.0

2001-2003 71,406 50,301 53,300 57,575 58,488

2004-2006 83,696 81,305 77,068 93,262 84,471

2001-2006 78,800 69,624 67,695 74,145 73,253



Claim per sum insured per age group

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

2001-2003 0.185% 0.180% 0.262% 0.470% 0.666%

2004-2006 0.190% 0.248% 0.323% 0.543% 0.800%

2001-2006 0.188% 0.225% 0.301% 0.510% 0.748%



Claim per DWT per age groupin USD

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2001-2003 1.2 0.9 1.0 1.6 1.7

2004-2006 1.5 1.7 1.5 2.1 3.0

2001-2006 1.4 1.4 1.3 1.9 2.4



Loss ratio per age group

0%

50%

100%

150%

200%

2001-2003 117.5% 82.0% 99.3% 119.3% 118.7%

2004-2006 104.6% 97.0% 107.1% 131.8% 120.4%

2001-2006 108.9% 92.4% 104.6% 126.3% 119.8%



21.8%

5.3%

13.5%

11.6%17.9%

3.8%0.8%3.5%

3.8%

7.0%

10.8%

21.4%

4.3%

13.9%

12.6%

21.7%

3.6%0.4%3.9%

3.7%

6.0%

8.3% Bulk

Car/RoRo

Cargo

Chem./Prod.

Container

LNG/LPG

OBO

Other

Passenger

Suppl./Off.

Tank


Number of vessels per vessel type


Sum Insured per Vessel (excl. Passenger)

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

2002

2003

2004

2005

2006

2007

Bulk

Cargo

Cont./Car/RoRo

Tank

Supply/Off

Car/RoRo

all


Notes:

- ”Tank” includes in this and the following slides: Chemical/Product, LNG/LPG, OBO and other tank vessels

- Claims < 10.000 USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles has impact on the registered frequency

Claim frequency per vessel type group

0.0

0.1

0.2

0.3

0.4

0.5

2001-2003 0.19 0.31 0.38 0.30 0.20 0.20

2004-2006 0.18 0.32 0.36 0.35 0.19 0.22

2001-2006 0.19 0.32 0.37 0.32 0.19 0.21

Bulk CargoCont./Car/R

oRoPassenger Tank Supply/Off


Claim per vessel per vessel type group

0

100,000

200,000

300,000

2001-2003 48,905 39,736 76,913 123,768 61,929 27,361

2004-2006 68,667 57,391 97,075 263,550 69,469 69,730

2001-2006 60,437 50,636 88,870 196,517 66,180 50,446




Claim per sum insured per vessel type group

0.0%

0.2%

0.4%

0.6%

0.8%

2001-2003 0.369% 0.500% 0.369% 0.123% 0.237% 0.453%

2004-2006 0.346% 0.644% 0.354% 0.229% 0.205% 0.709%

2001-2006 0.354% 0.593% 0.359% 0.182% 0.217% 0.622%




Claim per DWT per vessel type group

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2001-2003 0.8 3.0 2.7 28.7 0.7 20.9

2004-2006 1.1 5.1 3.0 50.4 0.8 46.7

2001-2006 1.0 4.2 2.9 41.0 0.8 35.8




Loss ratio per vessel type group

0%

50%

100%

150%

200%

250%

2001-2003 100% 105% 143% 85% 109% 135%

2004-2006 108% 107% 129% 98% 94% 206%

2001-2006 105% 107% 134% 93% 99% 182%




28.7%

11.5%

16.0%

15.2%

12.4%

4.7%4.8%

28.5%

12.6%

15.4%

14.2%

13.5%

4.7%

4.9%3.1%

0.3%

3.1%1.8%1.4%

0.4%1.2%1.5% < 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Number of vessels per Size Group




Claim frequency per DWT size group

0.0

0.1

0.2

0.3

0.4

2001-2003 0.31 0.33 0.30 0.25 0.15 0.15 0.16 0.11 0.08 0.16 0.15

2004-2006 0.32 0.32 0.29 0.23 0.17 0.19 0.16 0.11 0.12 0.13 0.11

2001-2006 0.32 0.32 0.30 0.24 0.16 0.17 0.16 0.11 0.10 0.14 0.13

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Claim per vessel per DWT size groupin USD

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2001-2003 47,489 86,739 67,323 49,586 64,822 80,904 46,420 39,830 18,481 107,282 48,962

2004-2006 76,861 105,437 90,743 71,304 68,839 67,005 130,964 116,643 17,221 64,118 68,651

2001-2006 64,675 97,483 80,607 62,131 67,276 72,911 95,333 85,059 17,784 85,240 59,888

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Claim per sum insured per DWT size group

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

2001-2003 0.228% 0.518% 0.449% 0.276% 0.245% 0.242% 0.138% 0.123% 0.076% 0.271% 0.109%

2004-2006 0.372% 0.471% 0.479% 0.314% 0.210% 0.144% 0.264% 0.249% 0.052% 0.119% 0.097%

2001-2006 0.312% 0.488% 0.467% 0.300% 0.222% 0.178% 0.222% 0.208% 0.061% 0.182% 0.101%

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Claim per DWT per DWT size groupin USD

0.02.04.06.08.0

10.012.014.016.018.0

2001-2003 11.6 5.8 2.5 1.2 1.0 0.9 0.4 0.2 0.1 0.4 0.1

2004-2006 17.3 7.3 3.3 1.7 1.1 0.8 1.1 0.7 0.1 0.2 0.2

2001-2006 15.1 6.7 2.9 1.5 1.1 0.8 0.8 0.5 0.1 0.3 0.2

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Loss ratio per DWT size group

0%

50%

100%

150%

200%

2001-2003 95% 173% 136% 103% 106% 115% 69% 60% 20% 135% 54%

2004-2006 105% 140% 134% 109% 92% 73% 132% 133% 20% 53% 58%

2001-2006 102% 151% 135% 107% 97% 88% 111% 108% 20% 84% 56%

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


7%5%

2%

11%

6%

2%6%

1%8%4%6%

3%3%

3%5%3%4%

21%

8%

5%2%

11%

4%

4%

6%

1%8%

5%4%

4%3%

5%

3%

3%

3%

21%

BHS - Bahamas

CYP - Cyprus

GRC - Greece

LBR - Liberia

NIS - Norway int.reg.

NOR - Norway

PAN - Panama

USA

ATG - Antigua&Barbuda

DIS - Denmark

DEU- Germany

HKG - Hongkong

MLT - Malta

MHL - Marshall Islands

NLD - Netherlands

SGP - Singapore

GBR - UK

other


Number of vessels per largest flags


Grey16%

White79%

Other4%

Black1%

Very high risk

Black0%

Medium to high risk

Black62%

Medium riskBlack33%

High riskBlack5%


Vessel distribution by flag

by Paris MOU classification

(Black Grey and White list 2006,as of 5 June 2007)


12.3%

8.5%

16.7%

20.9%

9.6%

23.0%

9.1%

11.5%

9.3%

20.3%

18.8%

9.5%

20.8%

9.8%

American Bureau

Bureau Veritas

Germanischer Lloyd

Lloyd's Register

Nippon Kaiji Kyokai

Det Norske Veritas

others


Number of vessels per classification society


Exposure curves by Sum InsuredPartial Claims only (<75%SI)

50%

60%

70%

80%

90%

100%

110%

Ceding company's retention as % of SI

Ce

din

g c

om

pa

ny

's r

ete

nti

on

of

cla

ims

(i

n %

of

tota

l cla

ims

)

0-5 Mio USD 0.595 0.775 0.870 0.933 0.968 0.988 0.999 1.000 1.000 1.000

5-20 Mio USD 0.716 0.850 0.914 0.952 0.977 0.992 0.999 1.000 1.000 1.000

20-75 Mio USD 0.741 0.853 0.921 0.966 0.984 0.993 0.999 1.000 1.000 1.000

> 75 Mio USD 0.903 0.972 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

100% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


PA claims in % of all claims : 0-5 Mio USD: 70%5-20 Mio USD: 83%20-75 Mio USD: 77%> 75 Mio USD: 100%

Sum Insured


Exposure Curves

• Exposure curves are used by reinsurers to price excess of loss reinsurance.• The curves indicate the ceding company's retained share of PA claims after ceding claims in excess of a given percentage of a vessel’s sum insured.• The curves should be applied on individual vessels or groups of vessels with similar values and written shares. • The curves are calculated for 100% values. In applications the choice of curve should thus also be based on 100% values.

Exposure Curves technicalities

• The curves are based on H&M covers only for vessels with valid IMO-No.• The curves are based on the underwriting years 2002-2007 (12,117 claims)• The curves are calculated as follows: x = percentage retained C = Individual partial claims V = Vessel value f(x) = Σ min[C, V*x]/ Σ C


CEFOR marine insurance statistics publications, all at http://www.cefor.no :

• CEFOR Annual Report 2007, p.18-25, Nordic Marine Insurance Statistics

http://www.cefor.no/news/CEFOR%20&%20Annual%20Report/CEFOR_AnnualReport2007.pdf

• The 2007 CEFOR NoMIS Reporthttp://www.cefor.no/statistics/documents/2007%20CEFOR%20The%20NoMIS%20report.ppt

• The 2007 CEFOR Report on Hull claim trendshttp://www.cefor.no/statistics/documents/2007%20CEFOR%20Hull%20Claim%20Trends.pdf

Links to other marine insurance statistics:

• CEFOR website, Statistics section: (CEFOR and IUMI statistics for download, including historical data) http://www.cefor.no/statistics/statistics.htm

• IUMI (International Union of Marine Insurance): Statistics issued by IUMI’s Facts & Figures Committee:http://www.iumi.com/index.cfm?id=7165

The 2007 CEFOR NoMIS Report Nordic Marine Insurance Statistics Underwriting Years 1995–2007, as of...

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