Marine hull insurance claims costs remain elevated, while an ageing insured fleet and rising vessel values are increasing risk exposure, according to the Mid-year hull report from the Nordic Association of Marine Insurers (Cefor).
The first half of 2026 marked the fourth consecutive year with claims exceeding USD 50 million. Overall claims costs were slightly lower than in 2024 and 2025, mainly due to fewer claims in the USD 10-50 million range and less severe fire losses. Major losses above USD 50 million have re-emerged since 2023 and continued in 2026, commonly involving fires, collisions and groundings.
Key highlights
- Claims costs: Fourth consecutive year with elevated claims costs, but below the peak levels recorded in 2024 and 2025.
- Claims frequency: Continues to increase for claims in the USD 10,000–500,000 range.
- Larger claims: Frequency of claims above USD 500,000 has flattened at an elevated level following increases in recent years.
- Total losses: Total loss frequency remains low at around 0.05%.
- Machinery failures: Machinery failure has increased in recent years and represents the largest share of both claims numbers and costs. It also contributes to other casualties, including fires and navigation-related incidents.
- Fleet age: The fleet continues to age, although the reduction in the portfolio share of vessels younger than five years has halted, remaining at around 15% since 2022.
- Vessel values: Overall vessel values increased by 1.5% at the 2026 renewals, with changes by vessel type ranging from a 10.2% decline for car/RoRo vessels to a 9.1% increase for tankers.
- Machinery failures remain the leading source of claims
- Machinery failures remain the largest source of claims, accounting for 47% of claims by number and 43% by cost. The frequency of machinery claims above USD 500,000 increased by 30% between 2022 and 2025 compared with earlier years.
Machinery claims exceeding USD 5 million have become increasingly common, averaging about 10 per year over the past five years. In 2024, six machinery claims exceeded USD 10 million, compared with typically one or two in an average year previously.
Rising repair costs add to machinery losses
The most expensive machinery claims typically involve large cruise ships, container vessels and bulk carriers, with main engines, auxiliary engines and propeller shafts among the main sources of losses.
Rising spare-parts and labour costs have contributed to claims inflation, while the average cost of machinery damage increased from 2018 to 2024 before appearing to level off at an elevated level.
Claims frequency continues to rise
Overall claims frequency for losses above USD 10,000 has continued to rise since the pandemic, although total loss frequency remains low at around 0.05%.
Navigational incidents are also significant contributors to claims costs, while fires on large container and car/RoRo vessels, which had a major impact in previous years, were less severe during the first half of 2026.
Insured fleet continues to age
The insured fleet continues to age, with vessels aged 15-20 years now representing the largest share of the portfolio. The proportion of vessels aged 0-5 years has remained broadly stable at around 15% since 2022. Older vessels are associated with a higher frequency of machinery claims.
Higher-value vessels increase exposure
At the same time, higher-value vessels account for an increasing share of the portfolio. Vessels valued at more than USD 30 million represented 33% of the insured fleet in 2025/26, with the number of vessels valued above USD 300 million also increasing.
Market and geopolitical developments, including oil-price fluctuations and the war involving Iran, have influenced vessel values, particularly in the tanker and supply/offshore segments.