CEFOR The 2004 NoMIS Report

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CEFOR - The 2004 NoMIS Report
Norwegian Marine Insurance Statistics
Underwriting Years 19952004, as of 31 December
2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004

• Part 1 Introduction
• Contents
• NoMIS
• Explanations
• Part 2 NoMIS position in the Global insurance
  market
• Global Marine Hull Insurance Market 2003
• Norwegian Marine Hull Insurance Market 2004
• Average gross share written in the NoMIS market
• Part 3 NoMIS portfolio Key figures,
  underwriting years 1995-2004
• Number of vessels
• Development of total insured values, DWT and
  premium
• Average age
• Average standard deductible
• Loss Ratio (including IBNR), 1985-2005
• Premiums and claims (including IBNR) per vessel
• Number and cost of claims by type
• Claim frequency

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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004

• 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.

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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004

• 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, 15
  largest
• Distribution by black, grey, white flags (Paris
  MOU classification 2003)
• Distribution of number of vessels by
  classification society, 6 largest
• Part 8 Premium indices
• Premium per vessel Premium per sum insured
  Cash Renewal Index
• Evolution of premium per sum insured, 12 months
  rolling
• Part 9 Exposure curves (partial claims only)
• All vessels

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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004
Introduction The Norwegian 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 December 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, a further step was taken to
restructure the database by extending the updates
to include also non-lead business back to
underwriting year 1995. In 2003, data from a
major new member was integrated, also dating back
to underwriting year 1995.In 2004, the database
was extended by data from two new members and
reached an all-time high of nearly 8,000
registered vessels for underwriting year 2004.
By 31st December 2004, in all 83,650 vessels
and 25,500 claims are registered for the
underwriting years 1985 through 2004.
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004
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 Outstandin
g claims average monthly rate of exchange of
December 2004 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 lt 75 of the
Sum Insured Loss Ratio Total claims / Net
premium Underwriting year year in which the
insurance attaches
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004
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, MLV Pallett Vessels,
Animal Transport Vessels CONTAINER Container
UCC, UCR CHEM./PRODUCT Chemical Carriers,
Product / Acid / Edible Oil / TAC, TCH, TCO,
TEO, TFJ, TFO Fish Oil / Fruit Juice / Wine /
Molasses / TMO, TPD, TWA, TWN, TWT Waste/
Water Tankers 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, like Fishing
vessels, Barges, Cranes, Floating
Storage, Floating Production, Pollution Control
Vessels, Mud boat, Research vessels, Cable,
Seismic Search vessel, Flo/Flo, etc.
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2004
Types of vessels specified contd. Vessel Type
group Vessels included Lloyds Conf. Index
Code PASSENGER All types of passenger vessels
and ferries, MPR, OFY, OHF, OHS,
PRR Passenger/Roro, Highspeed
Craft 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, Floating TNA,
TTA Production, Floating Storage, Naval
Auxiliary
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 2
Distribution of Global Marine Hull Premium 2003
World Norway
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 2
Distribution of Norwegian Marine Hull Premium
2004(Norwegian and International business)
Industriforsikring
If
0.1
3
NEMI
NEMI
Gjensidige
7
8
Norwegian
NOR
Norwegian
Gerling
Hull Club
4
Hull Club
11
31
29
Gerling
9
Vesta
Vesta
1
0.2
Gard
Bluewater
Gard
Bluewater
26
12
32
15
Codan
Codan
Coastal Marine
2
3
Clubs
7
Ocean Coastal Hull Ocean Hull
only
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 2As of 31 December 2004
Share sum of members premiums according to
their written share / sum of
premiums for 100 of the risk
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004

• Comments
• Decline in portfolio from 1997 to 2000 due to
  members concentrating on target business
• Decline from 2001 to 2002 partly due to two NoMIS
  members withdrawing from underwriting.
• Increase 2002-gt2004 due to real portfolio
  extension. Two new members start underwriting and
  join the datapool.

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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
Claims by Claims type
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
Claims by Claims type
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
Comment Claims lt 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
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 4 As of 31 December 2004
Number of vessels per age group
Total number of vessels 1999-2003
32,458 2004 7,815
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2004
Comment Claims lt 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
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2004
Number of vessels per vessel type
Total number of vessels 1999-2003
32,458 2004 7,815
Comment The increase in Chem./Prod and decrease
in Tank vessels is mainly due to more
differentiated coding of vessel types in
Lloyds Confidential Index (LMIU) from 2002,
rather than to portfolio changes.
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2004
Comment Claims lt 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
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2004
Number of vessels per Size Group
Total number of vessels 1999-2003
32,458 2004 7,815
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2004
Comment Claims lt 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
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 7As of 31 December 2004
Number of vessels per flag, 15 largest
Total number of vessels 1999-2003
32,458 2004 7,815
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 7As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 7As of 31 December 2004
Number of vessels per classification society
Total number of vessels 1999-2003
32,458 2004 7,815
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 8As of 31 December 2004
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 9As of 31 December 2004
PA claims in of all claims 0-5 Mio USD
62 5-20 Mio USD 73 20-75 Mio USD
74 gt 75 Mio USD 100
Sum Insured
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2004 CEFOR Norwegian Marine Insurance Statistics
Part 9As of 31 December 2004

• 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 vessels 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 HM covers only.
• The curves are based on the underwriting years
  1995-2004 (13,000 claims)
• The curves are calculated as follows x
  percentage retained C Individual partial
  claims V Vessel value f(x) S minC,
  Vx/ S C

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2004 CEFOR Norwegian Marine Insurance Statistics
Part 9As of 31 December 2004

• Links to other statistics related presentations
• CEFOR Annual Report 2004 (page 16-21)
• http//www.cefor.no/news/CEFOR2020Annual20Rep
  ort/CEFOR20Annual20Report202004.pdf
• 2) Presentations at the FactsFigures
  Committee Workshop at the 2004 IUMI Conference
  in Singapore
• http//www.iumi.com/conferences/2004_Singapore/13
  09/ToreForsmo.pps
• http//www.iumi.com/conferences/2004_Singapore/13
  09/ChristianIrgens.pps
• http//www.iumi.com/conferences/2004_Singapore/13
  09/JustinGardner.pps