Allianz Commercial Safety and Shipping Review 2024

Introduction

• Host: Rich Soja, Global Head of Marine for Allianz Commercial
• Experts Panel:
  • Captain Rahul Khanna: Global Head of Marine Risk Consulting
  • Régis Brudin: Global Head of Marine Claims
  • Dr. Funke Adeosan: Global Transition Solutions Director
  • Eustace Heinrich: Global Product Lead for Marine Hull and Head of Marine Underwriting for Germany and Switzerland
• Topics Covered: Maritime statistics 2023, key losses, shipping trends, decarbonization, and insurance market overview

Maritime Statistics 2023

• Total Losses: 26 total losses in 2023
  • Definition: Vessels over 100 gross tons, including constructive total losses
  • Largest loss regions: South China, Indonesia, Indochina, Philippines
  • Trend: 70% drop in total losses over the past decades
• Regional Loss Distribution:
  • South China, Indochina, Philippines: 8 losses
  • East Mediterranean, Black Sea: 6 losses
  • British Isles, North Sea, English Channel, Bay of Biscay: 3 losses
• Types of Lost Vessels:
  • Predominantly cargo vessels (16)
  • Fishery vessels (4), tugs, chemical product anchor
• Causes of Loss:
  • Foundering/sinking (13)
  • Wrecked/stranded, fire/explosion
• Incidents in 2023: 2951 incidents, 3% decrease

Key Trends and Concerns

• Conflict Zones:
  • Shipping affected by conflicts (Gaza, Red Sea)
  • Rerouting through South Africa, increased costs
• Shadow Fleet:
  • Increased due to sanctions on Russian exports
  • Older vessels, poorly maintained, lack proper insurance
• Ship Size and Infrastructure:
  • Larger vessels lead to more complex claims
  • Example: Baltimore Bridge collapse

Cargo and Hull Trends

• Cargo Trends:
  • Increased theft, especially in the US
  • Natural catastrophes affecting cargo in storage
• Hull Trends:
  • Increasing complexity and cost of claims
  • General average costs rising

Decarbonization and Sustainability

• Regulatory Changes:
  • Shift to alternative fuels (ammonia, methanol, hydrogen)
  • IMO strategy for zero emission fuels by 2050
• ESG Focus:
  • Framework to meet sustainability goals
  • Impacts access to capital and insurance

Polar Shipping Trends

• Increased Activity:
  • More vessels in Arctic waters due to climate change
  • New risks associated with remote areas

Insurance Market Overview

• Marine insurance influenced by broader property and casualty market trends
• Specific challenges due to regional conflicts impacting war rates
• Potential market stabilization influenced by climate change and geopolitical events

Questions and Answers

• Topics included insurance definitions, regional loss frequency, claims trends, unmanned vessel risks, and AI impact on underwriting

Conclusion

• Presentation recorded and available on Allianz's website
• Attendees encouraged to follow up with questions

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This summary captures the key points discussed during the Allianz Commercial Safety and Shipping Review presentation, providing insights into maritime trends, challenges, and the insurance landscape for 2024.