Marine hull insurance claims remain at elevated levels

Marine hull insurance claims costs remain at an elevated level in 2026, marking the fourth consecutive year that claims have exceeded USD 50 million. While costs are slightly lower than the peaks seen in 2024 and 2025, the frequency of claims in the USD 10,000 to USD 500,000 range continues to rise.

Machinery failure has emerged as the primary driver of claims, accounting for 47% of claims by number and 43% by cost. These failures often contribute to secondary casualties such as fires, groundings, and collisions. Additionally, engine-related fires have stabilized at a higher frequency than pre-2019 levels, with vessels older than 15 years showing increased vulnerability.

Several factors are contributing to these sustained costs, including an ageing global fleet, rising vessel values, and above-average inflation in repair costs. While the frequency of total losses remains low at approximately 0.05%, the combination of wear and tear from older ships and the re-emergence of costly major losses, such as fires, maintains high risk exposure for insurers.