Fire and explosion incidents are behind the most expensive insurance claims in the marine industry, while cargo damage is the most frequent cause of loss, according to a report by Allianz Global Corporate & Specialty (AGCS).

In a recent report, AGCS analysed more than 240,000 marine insurance claims worldwide between January 2017 and December 2021, worth approximately 9.2 billion euros (SG$13.05 billion) in value. The insurer then identified several claims and risk trends that are driving major loss activity in the sector.

‘The number of fires on board large vessels has increased significantly in recent years, with a string of incidents involving cargo, which can easily lead to the total loss of a vessel or environmental damage,’ said Régis Broudin, global head of marine claims at AGCS.

‘At the same time, the shipping sector is also having to deal with many other challenges including a growing number of disruptive scenarios, supply chain issues, inflation, time-pressured crew members and employees, increasing losses and damages from extreme weather events, implementing new low-carbon technology and fuels, as well as Russia’s invasion of Ukraine.’