cefor - the 2004 nomis report

CEFOR - The 2004 NoMIS Report

Norwegian Marine Insurance Statistics Underwriting Years 1995–2004, as of 31 December 2004

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•Claim per vessel•Claim per Sum Insured•Key figures (table)


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.


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•Sum Insured bands (<5, <20, <100, and >100 Mio USD)•Explanations


IntroductionThe 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.


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 transactionOutstanding 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 InsuredPartial Losses = all losses <= 75% of the Sum Insured

Loss Ratio = Total claims / Net premium

Underwriting year = year in which the insurance attaches


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, MLVPallett Vessels, Animal Transport Vessels

CONTAINER Container UCC, UCR

CHEM./PRODUCT Chemical Carriers, Product / Acid / Edible Oil / TAC, TCH, TCO, TEO, TFJ, TFOFish Oil / Fruit Juice / Wine / Molasses / TMO, TPD, TWA, TWN, TWTWaste/ 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 codesnot specifically defined otherwise, likeFishing vessels, Barges, Cranes, Floating Storage,Floating Production, Pollution Control Vessels,Mud boat, Research vessels, Cable, Seismic Searchvessel, Flo/Flo, etc.


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, PRRPassenger/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, TTAProduction, Floating Storage, Naval Auxiliary

2004 CEFOR Norwegian Marine Insurance Statistics – Part 2

France9.8%

Italy8.2%

Japan10.9%

Korea4.7%

Spain5.6%

UK (IUA)5.2%

UK (Lloyd's)11.9%

USA6.8%

Rest of the World27.0%

Norway9.9%

Bluewater 9%

Coastal Marine Clubs

8%

Codan2%

Gard30%

Gerling8%

Gjensidige NOR5% Norwegian

Hull Club27%

Vesta2%

If4%

NEMI5%

Industriforsikring

0%

Distribution of Global Marine Hull Premium 2003

World Norway

2004 CEFOR Norwegian Marine Insurance Statistics – Part 2

Distribution of Norwegian Marine Hull Premium 2004(Norwegian and International business)

Bluewater 15%Codan

3%

Gard32%

Gerling11%

NEMI8% Norwegian

Hull Club31%

Vesta0.2%

Ocean & Coastal Hull Ocean Hull only

Bluewater 12%

Coastal Marine Clubs

7%

Codan2%

Gard26%

Gerling9%

Gjensidige NOR4%

Norwegian Hull Club

29%

Vesta1%

If3%

NEMI7%

Industriforsikring

0.1%


Share = sum of members premiums according to their written share / sum of premiums for 100% of the risk

Share of gross premiums written in the NoMIS market

0%

10%

20%

30%

40%

50%

60%

All business 26% 28% 29% 30% 32% 31% 36% 34% 30% 29%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


Comments: a) Decline in portfolio from 1997 to 2000 due to members concentrating on target business b) Decline from 2001 to 2002 partly due to two NoMIS members withdrawing from underwriting.c) Increase 2002->2004 due to real portfolio extension. Two new members start underwriting and join the datapool.

Number of vessels per underwriting year

5,3755,878

7,295 7,3946,796

6,0726,498

6,103

6,9897,815

0

2,000

4,000

6,000

8,000

10,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


Evolution of total sum insured, DWT, net premium 1995=100%

0%

50%

100%

150%

200%

250%19

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

Index Sum Insured, 1995=100% Index DWT, 1995=100%Index Net Premium, 1995=100%


Average age per underwriting year

13.1 13.413.9 14.1 14.0 13.8 13.6 13.5

12.8 12.9

8

10

12

14

16

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


Average standard deductible per underwriting yearin USD

0

50,000

100,000

150,000

200,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Standard Deductible USD Std. Deductible < 500,000 USD


Loss ratio in a historical perspective

98%

131%

149% 151%

202%

228%

122%

73%

47% 48%55%

71%

97%

134%143%

134%

117%127%

102% 104%

0%

50%

100%

150%

200%

250%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

L/R est. final (2003, 2004 incl. IBNR) Loss ratio est. 2005 (0% premium increase)Loss ratio est. 2005 (10% premium increase) 100%


Premiums and claims per vessel per underwriting yearin USD 1000

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

CBNI

IBNR

Outstanding claims

Paid claims

Net premium


Numbers (%)Inner ring: 1999-2003Outer ring: 2003

39%

10%16%

3%

12%

4%1%

15%37%

10%18%

2%

11%

3%1%

18%Machinery damage

Collision

Striking

Fire and explosion

Grounding

Heavy weather damage

Ice damage

Other types of damage

Claims by Claims type


Claims by Claims type

Costs (%)Inner ring: 1999-2003Outer ring: 2003

27%

13%

7%19%

24%

2%0%8%

23%

13%

5%

20%

31%

1%1%6%

Machinery damage

Collision

Striking

Fire and explosion

Grounding

Heavy weather damage

Ice damage

Other types of damage


Claim frequency per underwriting year

0.00

0.05

0.10

0.15

0.20

0.25

0.30

all claims 0.26 0.26 0.27 0.28 0.25 0.24 0.23 0.20 0.23 0.13 0.23

claims > 10,000 USD 0.12 0.12 0.12 0.13 0.12 0.11 0.11 0.10 0.12 0.07 0.11

claims > 500,000 USD 0.02 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.02

1995 1996 1997 1998 1999 2000 2001 2002 2003 20041999-2003

Average

Comment: Claims < 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


Claim per vessel per underwriting year

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

all claims 57,521 58,343 54,751 61,603 56,575 54,940 50,388 68,006 64,214 38,353 58,825

partial claims 41,614 49,576 39,531 53,775 49,438 39,106 37,478 37,713 40,442 28,557 40,969

1995 1996 1997 1998 1999 2000 2001 2002 2003 20041999-2003

Average


Claim per sum insured per underwriting year

0.000%

0.050%

0.100%

0.150%

0.200%

0.250%

0.300%

0.350%

all claims 0.305% 0.325% 0.317% 0.311% 0.290% 0.244% 0.215% 0.278% 0.256% 0.149% 0.256%

TLO claims 0.084% 0.049% 0.088% 0.039% 0.037% 0.070% 0.055% 0.124% 0.095% 0.038% 0.078%

1995 1996 1997 1998 1999 2000 2001 2002 2003 20041999-2003

Average


Key figures

Underwriting Year 1) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004Number of fleets 929 1,044 1,072 1,031 862 690 765 689 861 966Number of vessels 5,375 5,878 7,295 7,394 6,796 6,072 6,498 6,103 6,989 7,815dwt (millions) 246.9 263.1 297.2 297.1 303.4 290.0 318.7 311.7 348.2 365.7Premiums

Net Premium per vessel 105,184 82,003 56,373 46,100 39,674 40,866 42,979 53,423 67,365 76,163Net Premium per dwt 2.29 1.83 1.38 1.15 0.89 0.86 0.88 1.05 1.35 1.63Net Premium per sum insured 0.558% 0.456% 0.326% 0.233% 0.203% 0.182% 0.183% 0.219% 0.269% 0.296%ClaimsNumber of claims 1,420 1,530 2,002 2,095 1,730 1,478 1,482 1,251 1,583Claims frequency 0.26 0.26 0.27 0.28 0.25 0.24 0.23 0.20 0.23Loss ratio (%) 55% 71% 97% 134% 143% 134% 117% 127% 95%Claim per vessel 57,521 58,343 54,751 61,603 56,575 54,940 50,388 68,006 64,214Claim cost per dwt 1.25 1.30 1.34 1.53 1.27 1.15 1.03 1.33 1.29Claim cost per sum insured 0.305% 0.325% 0.317% 0.311% 0.290% 0.244% 0.215% 0.278% 0.256%Partial lossesNumber of partial losses 1,411 1,519 1,989 2,077 1,722 1,462 1,472 1,237 1,570Partial losses frequency 0.26 0.26 0.27 0.28 0.25 0.24 0.23 0.20 0.22Partial losses per vessel 41,614 49,576 39,531 53,775 49,438 39,106 37,478 37,713 40,442Partial losses per dwt 0.91 1.11 0.97 1.34 1.11 0.82 0.76 0.74 0.81Partial losses per SI 0.221% 0.276% 0.229% 0.271% 0.253% 0.174% 0.160% 0.154% 0.161%Total losses 3)

Number of total losses 9 11 13 18 8 16 10 14 13Total losses frequency 0.17% 0.19% 0.18% 0.24% 0.12% 0.26% 0.15% 0.23% 0.19%Total losses per sum insured 0.084% 0.049% 0.088% 0.039% 0.037% 0.070% 0.055% 0.124% 0.095%Average vesselSize (F)DWT 51,862 49,603 46,938 47,051 51,577 54,472 55,591 57,348 54,737 51,800Age (years) 13.1 13.4 13.9 14.1 14.0 13.8 13.6 13.5 12.8 12.9Value USDm 18.8 18.0 17.3 19.8 19.5 22.5 23.4 24.4 25.1 25.8Standard Deductible USD 186,305 158,675 144,481 127,760 128,235 142,053 154,955 154,815 148,164 148,982

Average Average1999-2003 1995-2004

773 8836,492 6,489314.4 297.4

2)

2)

2)

1,505 1,6190.26 0.28

119.8% 100.7%58,825 58,499

1.21 1.280.256% 0.279%

1,493 1,6070.23 0.25

40,969 43,3360.85 0.95

0.178% 0.207%

12 120.19% 0.19%

0.078% 0.072%

54,700 52,00013.5 13.623.0 21.0

145,784 148,097

Inner ring: 1999-2003Outer ring: 2004

23.0%

17.7%

14.5%

18.7%

26.1%

23.4%

23.0%

15.3%

12.9%

25.5%

0-5 years

5-10 years

10-15 years

15-20 years

> 20 years

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: 32,4582004: 7,815



Claim frequency per age group

0.00

0.10

0.20

0.30

0.40

1998-2000 0.29 0.30 0.26 0.31 0.24

2001-2003 0.21 0.25 0.25 0.25 0.20

0-5 years 5-10 years 10-15 years 15-20 years > 20 years


Claim per vessel per age group

0

20,000

40,000

60,000

80,000

100,000

1998-2000 65,121 75,220 36,150 71,756 62,739

2001-2003 81,573 46,566 56,203 58,890 68,350



Claim per sum insured per age group

0.000%

0.200%

0.400%

0.600%

0.800%

1.000%

1998-2000 0.168% 0.248% 0.179% 0.526% 0.631%

2001-2003 0.185% 0.145% 0.244% 0.432% 0.643%



Claim per DWT per age group in USD

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1998-2000 1.1 1.3 0.8 2.2 1.5

2001-2003 1.3 0.8 0.9 1.6 1.8



Loss ratio per age group

0.0%

50.0%

100.0%

150.0%

200.0%

1998-2000 126.8% 147.9% 83.3% 177.3% 153.7%

2001-2003 133.7% 76.8% 106.2% 121.8% 123.8%

1998-2003 130.8% 106.3% 95.4% 148.8% 136.7%



23.6%

5.3%

11.5%

6.7%12.1%4.3%

1.3%6.2%

4.7%

6.2%

18.1%

21.7%

5.3%

15.7%

13.0%

15.2%

3.7%

1.0%

5.7%

4.1%

3.7%

10.9%

Bulk

Car/RoRo

Cargo

Chem./Prod.

Container

LNG/LPG

OBO

Other

Passenger

Suppl./Off.

Tank


Number of vessels per vessel type


Comment: The increase in Chem./Prod and decrease in Tank vesselsis mainly due to more differentiated coding of vessel types in Lloyd’sConfidential Index (LMIU) from 2002, rather than to portfolio changes.


Claim frequency per vessel type group

0.00

0.10

0.20

0.30

0.40

0.50

Average 1998-2000 0.21 0.28 0.42 0.34 0.24 0.22

Average 2001-2003 0.17 0.27 0.33 0.30 0.18 0.21

Bulk CargoCont./Car/

RoRoPassenger Tank Supply/Off



Claim per vessel per vessel type group

0

50,000

100,000

150,000

200,000

250,000

1998-2000 51,795 51,835 66,788 242,969 51,740 16,964

2001-2003 46,700 35,054 93,302 143,295 61,774 30,571

Bulk CargoCont./Car/R

oRoPassenger Tank Supply/Off


Claim per sum insured per vessel type group

0.000%

0.100%

0.200%

0.300%

0.400%

0.500%

1998-2000 0.369% 0.407% 0.271% 0.316% 0.206% 0.306%

2001-2003 0.343% 0.394% 0.396% 0.128% 0.221% 0.401%

Bulk CargoCont./Car/R

oRoPassenger Tank Supply/Off


Claim per DWT per vessel type group in USD

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1998-2000 0.9 3.9 2.5 64.6 0.6 19.1

2001-2003 0.8 2.5 3.3 31.7 0.7 25.8

Bulk CargoCont./Car/RoR

oPassenger Tank Supply/Off


Loss ratio per vessel type group

0%

50%

100%

150%

200%

250%

1998-2000 128% 180% 161% 235% 97% 138%

2001-2003 97% 98% 189% 91% 111% 165%

1998-2003 112% 136% 177% 147% 104% 151%

Bulk CargoCont./Car/Ro

RoPassenger Tank Supply/Off


24.1%

11.9%

17.4%16.8%

11.6%

5.1%5.3%

26.4%

11.9%

15.7%

16.6%

12.4%

4.9%

4.8%3.2%

0.4%3.3%2.4%

1.6%

0.4%1.6%2.0%

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Number of vessels per Size Group



Claim frequency per DWT size group in USD

0.00

0.10

0.20

0.30

0.40

Average 1998-2000 0.33 0.36 0.29 0.24 0.20 0.23 0.17 0.11 0.16 0.21 0.11

Average 2001-2003 0.30 0.31 0.24 0.21 0.12 0.13 0.15 0.10 0.06 0.16 0.14

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000



Claim per vessel per DWT size group in USD

0

50,000

100,000

150,000

1999-2000 77,033 65,269 56,001 38,892 76,220 37,810 77,863 44,784 44,952 83,304 37,291

2001-2003 53,092 99,391 67,971 44,087 69,299 85,632 41,196 28,401 18,383 140,336 51,865

< 10,000

10,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Claim per sum insured per DWT size group in USD

0.000%

0.100%

0.200%

0.300%

0.400%

0.500%

0.600%

1998-2000 0.350% 0.394% 0.344% 0.199% 0.301% 0.142% 0.237% 0.148% 0.169% 0.220% 0.084%

2001-2003 0.192% 0.523% 0.425% 0.232% 0.256% 0.252% 0.115% 0.086% 0.073% 0.334% 0.106%

< 10,00010,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Claim per DWT per DWT size group in USD

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

17.0

1998-2000 16.7 4.5 2.1 0.9 1.2 0.4 0.6 0.3 0.2 0.3 0.1

2001-2003 11.5 6.7 2.5 1.0 1.1 1.0 0.3 0.2 0.1 0.5 0.2

< 10,00010,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


Loss ratio per DWT size group in USD

0%

50%

100%

150%

200%

250%

1998-2000 195% 170% 145% 95% 143% 68% 126% 80% 57% 107% 37%

2001-2003 94% 196% 139% 100% 120% 129% 67% 44% 20% 193% 61%

1998-2003 137% 184% 142% 97% 131% 104% 96% 59% 36% 152% 50%

< 10,00010,000-20,000

20,000-35,000

35,000-50,000

50,000-75,000

75,000-100,000

100,000-150,000

150,000-200,000

200,000-250,000

250,000-300,000

>300,000


7%5%

5%

12%

8%

2%11%4%1%3%

5%3%

2%3%2%

27%

7%

6%

5%

10%

6%

1%

11%

2%4%3%5%

4%

4%

3%

3%

26%

BHS - Bahamas

CYP - Cyprus

GRC - Greece

LBR - Liberia

NIS - Norway int.reg.

NOR - Norway

PAN - Panama

USA

ATG - Antigua&Barbuda

HKG - Hongkong

MLT - Malta

MHL - Marshall Islands

NLD - Netherlands

SGP - Singapore

GBR - UK

other


Number of vessels per flag, 15 largest



Vessel distribution by flag based on Paris MOU classification 2003

Grey5.4%

White62.7%

Other6.9%

High riskBlack1.2%

Medium riskBlack23.8%

Black25%


Number of vessels per classification society



14.2%

6.1%

9.7%

20.8%10.2%

24.4%

14.7%

11.7%

7.9%

17.6%

19.2%

8.5%

22.7%

12.5%

American Bureau

Bureau Veritas

Germanischer Lloyd

Lloyd's Register

Nippon Kaiji Kyokai

Det Norske Veritas

others

Premium Indices, 1990 = 100%

0%

50%

100%

150%

200%

250%

Premium per vessel 100.0% 121.9% 144.5% 186.0% 178.7% 139.5% 108.8% 74.8% 61.2% 52.6% 54.2% 57.0% 70.9% 89.4% 101.0%

Premium per Sum Insured 100.0% 110.2% 129.1% 143.9% 118.0% 105.0% 85.8% 61.4% 43.7% 38.2% 34.1% 34.5% 41.1% 50.5% 55.6%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cash index all renewals 100.0% 128.7% 171.7% 195.7% 194.8% 151.8% 119.9% 92.7% 76.2% 69.1% 68.9% 69.6% 78.5% 96.4% 112.5%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


Exposure curves by Sum InsuredPartial Claims only (<75%SI)

50%

60%

70%

80%

90%

100%

110%

Ceding company's retention as % of SI

Ce

din

g c

om

pa

ny

's r

ete

nti

on

of

cla

ims

(i

n %

of

tota

l c

laim

s)

0-5 Mio USD 0.615 0.797 0.893 0.947 0.979 0.994 1.000 1.000 1.000 1.000

5-20 Mio USD 0.753 0.882 0.936 0.969 0.988 0.998 1.000 1.000 1.000 1.000

20-75 M io USD 0.815 0.900 0.940 0.965 0.982 0.994 1.000 1.000 1.000 1.000

> 75 Mio USD 0.897 0.949 0.977 1.000 1.000 1.000 1.000 1.000 1.000 1.000

100% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


PA claims in % of all claims : 0-5 Mio USD: 62%5-20 Mio USD: 73%20-75 Mio USD: 74%> 75 Mio USD: 100%

Sum Insured


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 vessel’s 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 H&M 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) = Σ min[C, V*x]/ Σ C


Links to other statistics related presentations:

1) CEFOR Annual Report 2004 (page 16-21):

http://www.cefor.no/news/CEFOR%20&%20Annual%20Report/CEFOR%20Annual%20Report%202004.pdf

2) Presentations at the Facts&Figures Committee Workshop at the 2004 IUMI Conference in Singapore:

http://www.iumi.com/conferences/2004_Singapore/1309/ToreForsmo.ppshttp://www.iumi.com/conferences/2004_Singapore/1309/ChristianIrgens.ppshttp://www.iumi.com/conferences/2004_Singapore/1309/JustinGardner.pps

cefor - the 2004 nomis report

Documents

cefor portfolio

hull machinery insurance

insurance data

norwegian hull agreement

nomis portfolio key

uptodate hull figures

sum insuredclaim

vessel premium