Claims costs seem to stabilize at high levels, according to the latest claims statistics from The Nordic Association of Marine Insurers (Cefor). “The picture is particularly worrying for nautical-related claims with average costs climbing back to high levels in 2011”, says the Association’s Managing Director, Helle Hammer.

According to updated figures as per 30 June from the Nordic Marine Insurance Statistics (NoMIS) database, the average cost of claims per vessel continues at the high 2010 level ending a downward trend from the peak years 2007/2008. Part of the reason for this appear to be the more stable market conditions with higher utilisation rates and repair costs following the sudden decline in the world economy as well as the shipping sector.

The value of newbuildings are also generally increasing due to more advanced technologies and vessels sizes, making each vessel more expensive to insure and the potential claims cost much higher. “History has proven the volatility of major claims, and it is necessary to prepare at all times for these costly claims”, warns Hammer.

A new increase in average cost for nautical-related claims such as grounding, contact and collisions are of particular concern to the Association. “More advanced ships and the introduction of new technologies represents a particular challenge in recruiting competent crew and providing them with proper training”, says Helle Hammer, pointing to human error as a direct or indirect cause in most incidents at sea.