1. CEFOR - The 2006 NoMIS Report
CEFOR - The 2006 NoMIS Report
Nordic Marine Insurance Statistics Underwriting Years 1995–2006, as of 31 December 2006

2.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
Part 1 – Introduction
Contents
NoMIS
Explanations
Part 2 – NoMIS position in the Global insurance market
Global Marine Hull Insurance Market 2005
Norwegian Marine Hull Insurance Market 2006
Average gross share written in the NoMIS market
Part 3 – NoMIS portfolio Key figures, underwriting years
Number of vessels
Development of average insured values, DWT and premium
Average age
Average standard deductible
Loss Ratio (including IBNR),
Premiums and claims (including IBNR) per vessel
Claims in claim bands – claim per vessel
Number and cost of claims by type
Claim frequency
Claim per vessel
Claim per Sum Insured
Key figures (table)

3.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
Part 4 – Key figures by age group
Distribution of number of vessels
Claim frequency
Claim per vessel
Claim per Sum Insured
Claim per DWT
Loss Ratio
Part 5 – Key figures by vessel type group
Claims frequency
Legal disclaimer CEFOR provides the statistics material in this presentation for general information purposes only. All key figures are derived from the CEFOR portfolio, which reflects a minor part of the world fleet, the selection of ships being biased by Norwegian underwriting preferences. Therefore CEFOR can accept no responsibility and shall not be liable for any loss which may arise from reliance upon the information provided.

4.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
Part 6 – Key figures by size group
Distribution of number of vessels
Claims frequency
Claim per vessel
Claim per Sum Insured
Claim per DWT
Loss Ratio
Part 7 – Distribution by flag and classification society
Distribution of number of vessels by flag, 16 largest
Distribution by black, grey, white flags (Paris MOU classification 2005)
Distribution of number of vessels by classification society, 6 largest
Part 8 – Premium indices
Premium per vessel – Premium per sum insured – Cash Renewal Index
Part 9 – Exposure curves (partial claims only)
Sum Insured bands (<5, <20, <100, and >100 Mio USD)
Explanations

5.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
Introduction The Nordic Marine Insurance Statistics (NoMIS) is a joint database project of CEFOR members active on the Hull & Machinery market to compile insurance data and vessel characteristics for statistical purposes. The database is administered by CEFOR. Since its foundation in 1985 until 1997 the data was compiled by appointing CEFOR a compulsory facultative reinsurer to which the members of the Norwegian Hull Agreement ceded 0.1% of their Hull & Machinery insurance. Premium and claims information was exchanged via Borderaux, the lead insurer providing details of each claim. When the Hull Agreement was discontinued in December 1996, the statistics cooperation continued.
In 1998 steps were taken to update the NoMIS’ database electronically. All necessary routines were in place by December 1999, enabling CEFOR to produce up-to-date hull figures on a monthly basis and extending the database substantially by including non-lead business from underwriting year 1998.
In 2000, a further step was taken to restructure the database to extend the updates to include also non-lead business back to underwriting year In 2003, data from a major new member was integrated, dating back to underwriting year In 2004, the database was extended by data from two new members and in both 2005 and 2006 data from further members was added. This includes data written from other Nordic countries.
The number of registered vessels reached in 2006 an all-time high of 10,804 vessels. Compared to the world fleet, the NoMIS database covers in 2006 about 25% of the world fleet above 300 GT in terms of numbers and 52% in terms of tonnage. By 31st December 2006, in all 108,183 vessel years (vessels with IMO-number) and 33,345 claims were registered for the underwriting years 1985 through 2006.
The NoMIS statistics in this report comprise data from: Bluewater Insurance ASA, Codan Group (Codan Marine, Denmark; Codan Marine Services, Norway; Trygg-Hansa Marine, Sweden), Gard, Gjensidige Forsikring, NEMI ASA, Norwegian Hull Club, Swedish Club, Zurich Protektor Forsikring AS.

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
All amounts are presented in USD.
Rate of exchange applicable to convert the figures from the original currencies into USD:
Premiums: average monthly rate of exchange of the month of transaction
Paid claims: average monthly rate of exchange of the month of transaction
Outstanding claims: average monthly rate of exchange of December 2006
All premiums are net of all rebates and commissions.
All claims are net of any deductibles applicable.
Total Claims = Paid claims + Outstanding claims
TLO (or Total Losses) = claims in excess of 75% of the Sum Insured
Partial Losses = all losses <= 75% of the Sum Insured
Loss Ratio = Total claims / Net premium
Underwriting year = year in which the insurance attaches

7. Types of vessels specified
2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
Types of vessels specified
Vessel Type group Vessels Types included Lloyds Conf. Index Code
BULK Bulk, Ore, Cement BBU, BCB, BCE, BOR, BWC
CAR/RORO Car Carrier, RoRo MVE, URC, URR
CARGO Dry Cargo, General Cargo, Reefers, GCT, GGC, GPC, GRF, MLV Pallett Vessels, Animal Transport Vessels
CHEM./PRODUCT Chemical Carriers, Product / Acid / Edible Oil / TAC, TCH, TCO, TEO, TFJ, TFO
Fish Oil / Fruit Juice / Wine / Molasses / TMO, TPD, TWA, TWN, TWT
Waste/ Water Tankers
CONTAINER Container UCC, UCR
LNG/LPG Gas Carriers LNG, LPG, LNG/LPG LNG, LPG, LNP
OBO Combined Vessels Bulk, Ore, Oil COO, CBO
OTHER all other ships and floating units all other codes not specifically defined otherwise, like
Fishing vessels, Barges, Cranes, Floating Storage,
Floating Production, Pollution Control Vessels,
Mud boat, Research vessels, Cable, Seismic Search
vessel, Flo/Flo, etc.

8. Types of vessels specified contd.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2006
Types of vessels specified contd.
Vessel Type group Vessels included Lloyds Conf. Index Code
PASSENGER All types of passenger vessels and ferries, LOF, LOP, MPR, OFY, OHF, Passenger/Roro, Highspeed Craft OHS, PRR
SUPPL/OFF Supply, Anchorhandling, Standby, Drilling OBS, OBT, ODS, OIB, OIF, OIS,
Vessel, General Service Vessel, OIT, OLT, OMN, OMT, OOS, OPP, Supply (Tug, Anchor), Tug/Icebreaker ORP, OSU, OSY, OSZ, OWO, XAA, XAF, XAG, XAH, XAT, XCT, XFF, XFS, XPT, XTG, XTI, XTP,
XTR, XTS, XTT, XTX
TANK Tanker, Sludge Vessel, Crude Oil Tanker OSC, OTC, TAS, TBK, TCR,
Asphalt Carriers, Bunkering Tanker, TNA, TTA
Naval Auxiliary

9. 2006 CEFOR Norwegian Marine Insurance Statistics – Part 2
2006 CEFOR Norwegian Marine Insurance Statistics – Part 2
Distribution of Global Marine Hull Premium 2005
(Business written
from Norway only)
(Business written
from Norway only)
World Norway

10. 2006 CEFOR Norwegian Marine Insurance Statistics – Part 2
2006 CEFOR Norwegian Marine Insurance Statistics – Part 2
Distribution of CEFOR Marine Hull Premium 2006
Including Coastal Excluding Coastal ! Note: The premium overview on this slide INCLUDES Loss of hire, hull and freight interest and building risk in addition to hull.
Whereas all following statistics are pure hull statistics and EXCLUDE Loss of hire, hull and freight interest and building risk !

11.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 2 As of 31 December 2006
Average share = Sum of members gross premiums according to their written share /
Sum of premiums for 100% of the risk (Sum = sum over all vessels in the NoMIS portfolio)

12.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
Comments:
Decline in portfolio from 1997 to 2000 due to members concentrating on target business
Increase 2000->2006 due to both market growth and new members joining the NoMIS datapool. Database comprises business underwritten from all Nordic countries in addition to Norway.

13.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006

14.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006

17.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
CBNI = Covered But Not yet Incurred
IBNR = Incurred But Not yet Reported Outstanding = Incurred and reported, but not yet paid

18. 2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
Claim bands:

19.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
Claims by Claims type
Total 2005: 2,395

20.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
Claims by Claims type
Total 2005: USDm 707

21.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

22.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006

23.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006

24.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2006
1) The figures in the table are 100% figures, per vessel underwritten by CEFOR companies. They do reflect the CEFOR portfolio as a whole but NOT the shares or results of the CEFOR members. The 2006 underwriting year is still at risk. Approximately 60% of the premium is earned as of
2) Premium and claim figures per vessel, DWT and sum insured can be used to calculate “expected loss ratios” at the current premium level. As a simple example, an estimate based on claims and premium per sum insured is derived as follows: Average claim per SI / 2006 premium per SI = 0.283/0.280 = 101%
3) Total losses are defined as claims in excess of 75% of the sum insured of the vessel.
Only vessels with valid IMO-No. are included.

25. Number of vessels per age group
2006 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2006
Number of vessels per age group
Total number of vessels
: ,527
2006: ,804

26.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2006
Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

27.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2006

31. Number of vessels per vessel type
2006 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2006
Number of vessels per vessel type
Total number of vessels
: ,527
2006: ,804

32.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2006
Notes: - ”Tank” includes in this and the following slides: Chemical/Product, LNG/LPG, OBO and other tank vessels
- Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles has impact on the registered frequency

33.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2006

37. Number of vessels per Size Group
2006 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2006
Number of vessels per Size Group
Total number of vessels
: ,527
2006: ,804

38.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2006
Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

39.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2006

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2006 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2006

43. Number of vessels per largest flags
2006 CEFOR Norwegian Marine Insurance Statistics – Part 7 As of 31 December 2006
Number of vessels per largest flags
Total number of vessels
: ,527
2006: ,804

44. Vessel distribution by flag Based on Paris MOU classification
2006 CEFOR Norwegian Marine Insurance Statistics – Part 7 As of 31 December 2006
Vessel distribution by flag
Based on
Paris MOU classification
(effective 1 July 2006,
updated 17 October 2006)

45. Number of vessels per classification society
2006 CEFOR Norwegian Marine Insurance Statistics – Part 7 As of 31 December 2006
Number of vessels per classification society
Total number of vessels
: ,527
2006: ,804

46.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 8 As of 31 December 2006

47.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 9 As of 31 December 2006
PA claims in % of all claims : Mio USD: 66%
Mio USD: 77%
20-75 Mio USD: 78%
> Mio USD: 100%
Sum Insured

48.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 9 As of 31 December 2006
Exposure Curves
Exposure curves are used by reinsurers to price excess of loss reinsurance.
The curves indicate the ceding company's retained share of PA claims after ceding claims in excess of a given percentage of a vessel’s sum insured.
The curves should be applied on individual vessels or groups of vessels with similar values and written shares.
The curves are calculated for 100% values. In applications the choice of curve should thus also be based on 100% values.
Exposure Curves technicalities
The curves are based on H&M covers only for vessels with valid IMO-No.
The curves are based on the underwriting years (15,000 claims)
The curves are calculated as follows: x = percentage retained C = Individual partial claims V = Vessel value f(x) = Σ min[C, V*x]/ Σ C

49.
2006 CEFOR Norwegian Marine Insurance Statistics – Part 9 As of 31 December 2006
Links to other marine insurance statistics:
CEFOR Annual Report 2006:
CEFOR website, Statistics section: (CEFOR and IUMI statistics for download, including historical data)
IUMI (International Union of Marine Insurance): Presentations at the Facts & Figures Committee’s Open Forum and all other conference presentations available for download from , check > conferences on menu