The shipping industry is grappling with a growing insurance crisis as the aging global fleet drives a sharp increase in claim costs, according to the latest data from the Nordic Association of Marine Insurers (Cefor).
Cefor’s 2025 Nordic Marine Insurance Statistics (NoMIS) report, released this week, highlights that ocean hull claim costs remain 33% higher than pre-pandemic levels. This marks the third consecutive year of elevated losses, with machinery failures and fires identified as the primary culprits. These issues are closely tied to the advancing age of the global merchant fleet, a phenomenon Cefor dubs the ‘silver tsunami.’
Machinery claims have become a critical concern. Between 2022 and 2025, the frequency of machinery claims exceeding $500,000 rose by 30%, driving a 50% increase in machinery claim costs per vessel. Alarmingly, seven of the 18 claims surpassing $10 million in 2024 were machinery-related—equaling the total from the previous six years combined. The frequency of such large machinery claims in 2024 was six times higher than in the prior six-year period.
Cefor analysts also note a growing trend of machinery claims being attributed to human error, potentially linked to crew shortages plaguing the industry. These failures are increasingly associated with secondary incidents like collisions, groundings, and fires, further complicating claim categories.
Fires remain a dominant factor in severe losses. In 2025, seven of the 13 claims exceeding $10 million were fire-related, with fires accounting for 40-70% of the most expensive losses in six of the past 10 years.
The number of claims over $10 million doubled from nine in 2023 to 18 in 2024, with 2025 already recording 13 such claims. Losses involving vessels valued above $10 million have also risen, signaling worsening conditions for higher-value tonnage.
Adding to the challenge, inflation is exacerbating claim costs, with trends closely tracking newbuilding price indices and reserve adjustments rising sharply.
Source: https://splash247.com/silver-tsunami-drives-surge-in-shipping-claims/