The premium of ship insurance in the Chinese property insurance market has demonstrated fluctuations over the last decade, experiencing a contrasting downward and upward trend. In recent years, there has been a steady recovery from the lows of 2016-2017. The premiums bounced back, reaching 58.71 hundred million Yuans Renminbi in 2023, a modest year-on-year growth of 0.72%. The last five years exhibited a Compound Annual Growth Rate (CAGR) of 2.08%, suggesting moderate annual increases.
Forecasted data from 2024 onwards predicts a continued albeit slower increase in premiums, with a forecasted five-year CAGR of 0.27% and total forecasted growth of 1.34% by 2028. This suggests that while growth will continue, it will be at a significantly diminished rate compared to previous years.
Future trends to watch for:
- Regulatory changes and their impact on premiums.
- Technological advancements in ship safety, potentially affecting risk assessments and premiums.
- Macroeconomic factors and global trade dynamics that could influence the volume of insured shipping activities.
