Fires and explosions are among the most costly claims in the maritime industry according to Allianz Global Corporate & Specialty’s (AGCS) latest report.
The marine insurer assessed over 240,000 incidents in the marine insurance sector between January 2017 and December 2021, which led to claims totaling 9.2 billion euros.
Fires accounted for 18% of the value of marine claims analyzed (amounting to approximately 1.65 billion euros) while in the previous five-year period ending July 2018, they accounted for 13% of the total.
One of the factors that, according to AGCS, contributes to the increased risk of fires on board is the presence of dangerous cargoes which are not always declared, while the increasing percentage of fires located in the engine room could highlight the crew’s lack of adequate skills.
At the same time, the maritime sector faces many other challenges, including disruption to supply chains, galloping inflation averaging around 10%, increased exposure to extreme weather events and the war in the Ukraine.
AGCS also reports that the combined value of the global merchant fleet increased by 26% to 1.2 trillion dollars in 2021. The average value of container shipments was also up, thanks mainly to the added value provided by electronics and pharmaceuticals.
Translation by Giles Foster
