2007 cefor the nomis report

8/7/2019 2007 Cefor the Nomis Report

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The 2007 CEFORNoMIS Report

Nordic Marine Insurance StatisticsUnderwriting Years 1995±2007, as of 31 December 2007



2007 CEFOR Nordic Marine Insurance Statistics ± Part 1 As 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 DWT

�Loss Ratio

Part 5 ± Key figures by vessel type group

�Distribution of number of vessels

�Claims frequency

�Claim per vessel


�Claim per DWT�Loss Ratio

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




Part 6 ± Key figures by size group�Distribution of number of vessels

�Claims frequency

�Claim per vessel


�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 theHull & 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 placeby 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 fromfurther 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 GTin 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 (CodanMarine, 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 transaction

Outstanding 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 Insured

Partial 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 specifiedVessel 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, MLV

Pallett Vessels, Animal Transport Vessels

CHEM./PRODUCT Chemical Carriers, Product / Acid / Edible Oil / TAC, TCH, TCO, TEO, TFJ, TFO

Fish 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 codes

not 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



France

7.6%

Italy

6.4%Japan

9.0%Korea

5.4%

Spain4.1%

USA

5.9%

Rest of the

World28.2%

UK (IUA)

5.7% UK (Lloyd's)

13.7%

Norway

14.0%

Bluewater

9.5%

Coastal MarineClubs

4.3%

Gard

35.0%

Gerling

9.0%

Gjensidige

3.7%

If

2.4%NEMI

7.4%

Norwegian Hull

Club24.5%

Vesta

2.0%

Codan

2.3%

2007 CEFOR Nordic Marine Insurance Statistics ± Part 2

Distribution of Global Marine Hull Premium 2006

World Norway

(Business writtenfrom Norway only)

(Business writtenfrom Norway only)

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



2007 CEFOR Nordic Marine Insurance Statistics ± Part 2

Distribution of CEFOR Marine ull 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.

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

luewater

8%

Møre- og

Tromstrygd

0%

Codan

10%

Gard

29%

Gerling

6%

Gjensidige

5%

If

4%

NEMI

6%

Norwegian ull

Club

19%

Swedish Club7%

TrygVesta

Marine

6%

luewater

9%

Codan

8%

Gard

35%

Gerling8%

Gjensidige

0%

NEMI

6%Norwegian

ull Club

21%

Swedish Club

8%

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)

A e ra e s are ritten in t e NoM IS ar e t

0%

10%

20%

30%

0%

0%

0%

All business 33% 3 % 3 % 3 % 3 % 37% % 1% 37% 3 % 3 % 3 % 31%

1 1 1 7 1 1 2000 2001 2002 2003 200 200 200 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 o esse s er nder ritin ear

215

7 331 7 3 56,792

6,2777,106 7,399

8,298

9,70810,222

11,54411,412

0

2 000

000

6 000

000

10 000

12 000

1 000

199 1996 1997 199 1999 2000 2001 2002 2003 200 200 2006 2007




E olution of a erage su insured WT, net pre iu

1995=100%

0

0

100

1 0

200

1 1 1

7

1 1 2

0 0 0

2

0 0 1

2

0 0 2

2

0 0 3

2

0 0

2

0 0

2

0 0

2

0 0 7

e A er e m s re 1 100 e A er e D 1 100e A er e e rem m 1 100




verage ge

13.0

13.413.8

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

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7




Avera e Standard educti le evelo entAll usiness, 00%, i D

0

0,000

100,000

1 0,000

200,000

1 1 1 7 1 1 2000 2001 2002 2003 200 200 200 2007

A er e t . De ctible A . t . De . 00,000 D




Hu Net oss Ratio,as re orted er 31.12.07 2007 inc . IBNR

¡ ¢

13£

¢

1¤ 0

¢

1¤ 1

¢

207¢

22£

¢

123¢

7£

¢

£

7 ¢

£

¡ ¢

¤

£

¢

7 ¡ ¢

0¢

12£

¢

13£

¢

12£

¢

11¤ ¢

117¢

¡ ¢

110¢

110¢

100 ¢

11¥ ¢

0¢

¤ 0

¢

100 ¢

1¤ 0

¢

200¢

2¤

0¢

1

¡ ¤ 1

¡ ¥ 1

¡ 7 1

¡ ¡ 1

¡

1

0 1

1 1

2 1

3 1 £

1

¤ 1

¥ 1

7 1

¡ 1

2000 2001 2002 2003 200£

200¤

200¥

2007

¦ §

̈ es©

fi

l

200

2007 i

cl

̈

100




CBNI = Covered But Not yet IncurredIBNR = Incurred But Not yet Reported

Outstanding = Incurred and reported, but not yet paid

Pre iu s and clai s er vessel er under writin year

in D 1000

0

20

0

0

0

100

120

1 1 1

7

1 1 2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0

2 0 0

2 0 0

2 0 0 7

CBNI

IBNR

Outstanding claims

aid claims

Net premium



USD l i r v l

010,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

>= 30

10-30

5-10

1-5

= 1

2007 EFOR Nordic M rin In ur nc St ti tic ± P rt 3 As of 31 ecember 2007

Claim bands:



Numbers (%)Inner ring: 2002-2006

Outer 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 (%)I r ri : -

t r ri :

%

%

%%

%

%%% %

%

%

%

%

%%

%i

ir l si

llisi

t ct

r i

t r

Ic

t r

7 CEFOR Nordic Marine Insurance Statistics ± Part As f 31 D c mb r 7

Claims by Claims type

Total 6: USDm , 6




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

Clai frequenc er under ritin ear

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 200 5 200 6

2002-

200 6

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 2006

2002-

2006

Av.



Inner ring: 2002-2006

Outer 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


Number of vessels per age group

Total number of vessels2002-2006: 47,171

2007: 11,412




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

C ai requenc er a e rou

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 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%

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




Clai er er a e roui D

0 0

0

1 0

1

2 02

3 0

2001 2003 1 2 0 1 0 1 1 7

200 200 1 1 7 1 2 1 3 0

2001 200 1 1 1 3 1 2

0 e rs 10 e rs 10 1 e rs 1 20 e rs 20 e rs




oss ratio er a e rou

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%

0-5 e rs 5-10 e rs 10-15 e rs 15-20 e rs > 20 e rs




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 timeand in each company and will thus influence the registered frequency.

In addition any increase/decrease of insurance deductibles has impact on the registered frequency

Clai f re uency per essel type group

0.0

0.1

0.2

0.3

0.

0.

2001-2003 0.1 0.31 0.3 0.30 0.20 0.20

200 -200 0.1 0.32 0.3 0.3 0.1 0.22

2001-200 0.1 0.32 0.37 0.32 0.1 0.21

Bulk CargoCont./Car/R

oRoPassenger Tank Supply/Off




Clai per su insured per essel t pe group

0 0

0 2

0

0

0

2001 2003 0 3 0 00 0 3 0 123 0 237 0 3

200 200 0 3 0 0 3 0 22 0 20 0 70

2001 200 0 3 0 3 0 3 0 1 2 0 217 0 22

r oo r

o osse er ff




Clai er T er vessel ty e grou

0.0

1.0

2.0

3.0

.0

.0

.0

2001-2003 0. 3.0 2.7 2 .7 0.7 20.

200 -200 1.1 .1 3.0 0. 0. .7

2001-200 1.0 .2 2. 1.0 0. 3 .

lk r oo t./ r/

o osse er T k l / ff




Loss ratio per essel type group

0

0

100

1 0

200

2 0

2001 2003 100 10 1 3 10 13

200 200 10 107 12 20

2001 200 10 107 13 3 1 2

r oo r

o osse er ff




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

Clai frequenc er DWT si e rou

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

>300,00

0




Clai er T er T size groui D

0.02.0.0.0.0

10.012.01 .0

1 .01 .0

2001-2003 11. . 2. 1.2 1.0 0. 0. 0.2 0.1 0. 0.1200 -200 17.3 7.3 3.3 1.7 1.1 0. 1.1 0.7 0.1 0.2 0.2

2001-200 1 .1 .7 2. 1. 1.1 0. 0. 0. 0.1 0.3 0.2

10,000

10,000-

20,000

20,000-

3 ,000

3 ,000-

0,000

0,000-

7 ,000

7 ,000-

100,000

100,000

1 0,000

1 0,000

200,000

200,000

2 0,000

2 0,000

300,000

300,00

0



Gr D

E

16F

WhitD

79F

Other

4F

BlG H I

1F

Ver E

hiP

h

riQ I

Bl G H I

0F

MediR S

tT

hiP

h riQ I

BlG H I

62F

MediR S

riQ I

BlG H I

33F

Hi P h ri Q I

Bl G H I

5 F

2007 CEFOR Nordic Marine Insurance Statistics ± Part 7 A f 31 December 2007

Vessel distribution by flag

by Paris MOU classification

(Bl ck Gr ey nd White li t 2006,

f 5 J ne 2007)



Inner ring: -

Outer ring:

. %

. %

. %

. %

. %

. %

. %

. %

. %

. %

. %

. %

. %

. %

American Bur eau

Bur eau U

eritas

Ger manischer Lloyd

Lloyd's Register

Nippon Kaiji Kyokai

Det Nor ske U

eritas

other s

2007 CEFOR Nor dic Marine Insur ance Statistics ± Part 7 As of 31 December 2007

Number of vessels per classification society

Total number of vessels 2002-2006: 47, 71

2007: 11,412



E posur e cur es by Sum Insur edPartial Claims only (<75%SI)

50%

60%

70%

80%

90%

100%

110%

Ceding company's r etention as %of SI

C e d i n g c o m p a n y

' s r e t e n t i o n o f

c l a i m s

( i n %

o f t o t a l c l a i m s )

0-5 MiV

USD 0.595 0.775 0.870 0.933 0.968 0.988 0.999 1.000 1.000 1.000

5-20 MiV

USD 0.716 0.850 0.914 0.952 0.977 0.992 0.999 1.000 1.000 1.000

20-75 MiV

USD 0.741 0.853 0.921 0.966 0.984 0.993 0.999 1.000 1.000 1.000

> 75 MiV

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%

2007 CEFOR Nor dic Marine Insur ance Statistics ± Part 9 As of 31 December 2007

P 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 Insur ed




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 curveshould 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) = min[C, V*x]/ C




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

� CEFOR nnual 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 ull 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

2007 cefor the nomis report

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