CEFOR - The 2006 NoMIS Report

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CEFOR - The 2006 NoMIS Report
Nordic Marine Insurance Statistics Underwriting
Years 19952006, as of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006

• Part 1 Introduction
• Contents
• NoMIS
• Explanations
• Part 2 NoMIS position in the Global insurance
  market
• Global Marine Hull Insurance Market 2005
• Norwegian Marine Hull Insurance Market 2006
• Average gross share written in the NoMIS market
• Part 3 NoMIS portfolio Key figures,
  underwriting years 1995-2006
• 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

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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006

• 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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006

• 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, 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 (lt5, lt20, lt100, and gt100 Mio
  USD)
• Explanations

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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006
IntroductionThe Nordic 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 to extend the updates 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 from further members was added. This
includes data written from other Nordic
countries. The number of registered vessels
reached in 2006 an all-time high of 10,804
vessels. Compared to the world fleet, the NoMIS
database covers in 2006 about 25 of the world
fleet above 300 GT in terms of numbers and 52 in
terms of tonnage.By 31st December 2006, in all
108,183 vessel years (vessels with IMO-number)
and 33,345 claims were registered for the
underwriting years 1985 through 2006. The NoMIS
statistics in this report comprise data from
Bluewater Insurance ASA, Codan Group (Codan
Marine, Denmark Codan Marine Services, Norway
Trygg-Hansa Marine, Sweden), Gard, Gjensidige
Forsikring, NEMI ASA, Norwegian Hull Club,
Swedish Club, Zurich Protektor Forsikring AS.
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006
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 2006 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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006
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 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 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, 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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 1As of 31 December 2006
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, TTA Naval
Auxiliary
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 2
Distribution of Global Marine Hull Premium 2005
(Business written from Norway only)
(Business written from Norway only)
World Norway
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 2
Distribution of CEFOR Marine Hull Premium 2006
Including Coastal
Excluding Coastal ! NoteThe premium overview
on this slide INCLUDES Loss of hire, hull and
freight interest and building risk in addition to
hull. Whereas all following statistics are pure
hull statistics and EXCLUDE Loss of hire, hull
and freight interest and building risk !
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 2As of 31 December 2006
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)
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006

• Comments
• Decline in portfolio from 1997 to 2000 due to
  members concentrating on target business
• Increase 2000-gt2006 due to both market growth and
  new members joining the NoMIS datapool. Database
  comprises business underwritten from all Nordic
  countries in addition to Norway.

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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
CBNI Covered But Not yet Incurred IBNR
Incurred But Not yet ReportedOutstanding
Incurred and reported, but not yet paid
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
Claim bands
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
Claims by Claims type
Total 2005 2,395
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
Claims by Claims type
Total 2005 USDm 707
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 3As of 31 December 2006
Only vessels with valid IMO-No. are included.
1) The figures in the table are 100 figures, per
vessel underwritten by CEFOR companies. They do
reflect the CEFOR portfolio as a whole but NOT
the shares or results of the CEFOR members. The
2006 underwriting year is still at risk.
Approximately 60 of the premium is earned as of
31.12.06. 2) Premium and claim figures per
vessel, DWT and sum insured can be used to
calculate expected loss ratios at the current
premium level. As a simple example, an estimate
based on claims and premium per sum insured is
derived as follows Average claim per SI / 2006
premium per SI 0.283/0.280 101 3) Total
losses are defined as claims in excess of 75 of
the sum insured of the vessel.
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 4 As of 31 December 2006
Number of vessels per age group
Total number of vessels 2001-2005
41,527 2006 10,804
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2006
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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 4As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2006
Number of vessels per vessel type
Total number of vessels 2001-2005
41,527 2006 10,804
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2006
Notes- Tank includes in this and the
following slides Chemical/Product, LNG/LPG, OBO
and other tank vessels - Claims lt 10.000 USD
account for about half of all claims.
Registration of these may vary over time and in
each company and will thus influence the
registered frequency. In addition any
increase/decrease of insurance deductibles has
impact on the registered frequency
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 5As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2006
Number of vessels per Size Group
Total number of vessels 2001-2005
41,527 2006 10,804
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2006
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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 6As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 7As of 31 December 2006
Number of vessels per largest flags
Total number of vessels 2001-2005
41,527 2006 10,804
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 7As of 31 December 2006
Vessel distribution by flag Based on Paris MOU
classification (effective 1 July 2006, updated
17 October 2006)
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 7As of 31 December 2006
Number of vessels per classification society
Total number of vessels 2001-2005
41,527 2006 10,804
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 8As of 31 December 2006
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 9As of 31 December 2006
PA claims in of all claims 0-5 Mio USD
66 5-20 Mio USD 77 20-75 Mio USD
78 gt 75 Mio USD 100
Sum Insured
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2006 CEFOR Norwegian Marine Insurance Statistics
Part 9As of 31 December 2006

• 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 for
  vessels with valid IMO-No.
• The curves are based on the underwriting years
  1995-2005 (15,000 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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2006 CEFOR Norwegian Marine Insurance Statistics
Part 9As of 31 December 2006

• Links to other marine insurance statistics
• CEFOR Annual Report 2006http//www.cefor.no/
• 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)
  Presentations at the Facts Figures Committees
  Open Forum and all other conference
  presentations available for download
  fromhttp//www.iumi.com/ , check gt conferences
  on menu