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Steering the course

A different approach to modelling marine risk

An Emerging Risk Report from Lloyd's Innovation

The Marine risk landscape is changing. Trends such as bigger vessels, older fleets, new and busier routes and increasing regulation have implications for the cost of extreme marine losses.

Lloyd’s and the Cambridge Centre for Risk Studies worked with marine experts, underwriters, actuaries, exposure managers to overcome this challenge and test the Lloyd's RDS marine scenarios currently used to stress test the market.

An important evolution of the methodology of managing the insurance losses arising from severe marine events, and is a useful starting point from which to develop further models with marine insurance experts.

An Emerging Risk Report from Lloyd's Innovation

Our ‘Steering the course’ report presents an alternative model to help insurers understand the ‘tail risk’ of potential losses they might experience in their marine portfolio. This analysis helps marine underwriters improve their estimation of the capital they need to support this important line of insurance business.


Mega vessel interactive map

Ships are always moving, making them vulnerable to changing conditions and events. Knowing what ships are doing anywhere in the world at any point in time is therefore highly valuable information to insurers.

As we discuss in our latest report – “Steering the Course” – a new type of mega vessel has emerged in recent years. These are much larger ships, capable of carrying significantly more cargo and crew than ever before. There are around 1,000 mega vessels in the world fleet – including mega-tankers, mega container-ships and mega cruise-ships.

Maritime data analytics company, Windward, created an interactive map, which shows the total hull value in US$ of mega vessels around the world at various points in time over the last year. Click the below image to access the interactive map.