The problem is that the average fleet has a good record but it is the few very big claims that produce losses, warned actuary Christian Irgens of the Norwegian Hull Club.
Underwriters typically focus on the five-year loss record of a fleet and increase the premium if it is bad and lower it if it is good.
But this crucially underestimates the risk because the statistics of a majority of fleets are good, noted Irgens as he reminded delegates to the IUMI conferment in Hong Kong that insurance is about spreading the claims burden of the few across the many.
“The
