Dave Matcham CEO of the International Underwriting Association (IUA) and secretary of IUMI’s Facts & Figures committee, was clearly a happy man to be able to present the first tangible results from IUMI’s Major Claims Database project.
Announced at the 2018 in South Africa, there were initially six participants. That had increased to 16 by this time last year in Toronto, and now it is up to 22. Of the final six (UK, France, New Zealand, Hong Kong, with hull only from UAE and Cyprus), the arrival of the UK numbers was clearly a major achievement. However, this came with a compromise. It appeared that $250,000 was too small a loss to be included in “major claims” for the UK, meaning that the numbers of claims in the $250k to $500k sector are slightly out of kilter with the loss numbers in the higher bands.
Notwithstanding that rider, Matcham reported that the database now had 6,800 claim records totalling $10.2bn of loss.
The five standard categories (at the moment) are:
- Underwriting year
- Loss Amount
- Type Of Loss
- Mode Of Transport
IUMI has chosen cargo for its first published report because this offers a wider geographical spread of underwriters.
Incurred average losses from accident years 2013 to 2019 ranged from a low of $1.2m to a high of $3.1m. Total losses in a year ranged from $343m to $970m.
The numbers for 2019 were an average of $1.5m and the total was $587m.
Most claims (87%) were for less than $2.5m. However, the top 3% of claims (in excess of $10m) made up 37% of the total loss.