Notes from the Allianz Commercial Safety and Shipping Review Presentation

Introduction

• Presenter: Rich Soja, Global Head of Marine
• Purpose: Identify maritime trends to watch in 2024 based on 2023 results
• Panel of Experts:
  • Captain Rahul Kanana: Global Head of Marine Risk Consulting
  • RIS Bren: Global Head of Marine Claims
  • Dr. Fun Adan: Global Transition Solutions Director
  • Eustus Hinrichs: Global Product Lead for Marine Hull

Topics Covered

• Maritime statistics from 2023
• Key losses review
• Concerning trends in global shipping
  • Hull and cargo
  • Claims
• Decarbonization and sustainability in the maritime sector
• Overview of the insurance market

Maritime Statistics 2023

• 26 total losses, vessels over 100 gross tons
• 729 losses in the past decade
• Main loss areas:
  • South China, Indonesia, Indochina, Philippines: 184 losses in the last decade, 8 in 2023
  • East Mediterranean and Black Sea
• 70% drop in total losses over the last few decades
• Losses by vessel type:
  • Cargo vessels: 16
  • Fishing vessels: 4
• Main causes of losses:
  • Foundering or sinking: 13 vessels
  • Fire and explosion incidents: 200 in 2023

Key Trends

• Proxy wars in the Middle East impacting shipping
• Increase in sophisticated attacks (missiles, drones)
• Shipping rerouting adding costs and time
• Shadow fleet concerns due to sanctions on Russian exports
• Rising costs and complexity of claims

Decarbonization and Sustainability

• Shift to alternative fuels (ammonia, methanol, hydrogen)
• IMO's zero-emission targets for 2050
• ESG framework as a means to achieve sustainability
• Impact on access to capital and insurance
• Increase in polar shipping due to climate change

Insurance Market Overview

• Overall P&C insurance world is profitable, but competition is increasing
• Marine insurance influenced by general P&C market
• War rates spiking for hulls in conflict regions
• Potential impacts of the Baltimore bridge collapse on reinsurance market

Conclusion

• Presentation covered statistics, trends, decarbonization, and insurance perspectives
• Focus on emerging hazards and market stability looking to 2025
• Encouragement for industry collaboration to address ongoing and emerging challenges

Q&A Highlights

• Importance of accurate data reporting and limitations
• Influence of AI in underwriting and claims
• Infrastructure protection against maritime incidents
• Concerns about unmanned vessels and associated risks
• Ongoing efforts to mitigate issues such as misdeclared cargo

Closing Remarks

• Thankful for participation; session recorded for future reference
• Encouragement to reach out for further insights or questions