The International Association

of Engineering Insurers TM

Engineering Insurance
Premium and Loss
Statistics 2009 - 2011
(Revised Nov. 2012)

Presented by
Allianz Global Corporate & Specialty
22 – 26 September 2012
Rio de Janeiro, Brazil
Development of Engineering Premium 2009 – 2011
all IMIA Members
Change
of total US$ Million
in % 9,926 10,054
+2.0 9,593 151
265 - 3.35 +4.78
226

IDI
9,661 9,367 9,903 all other LoB

2009 2010 2011

2
Development of Premiums 2009 – 2011
per Line of Business
% of total
9,626 premium
US$ Mill 10,054
9,593 151 (1.5)
265 (2.7) (2.4) 358 (3.6)
319 (3.2) 226 (3.2)
307 1,082 (10.8)
1,103 (11.1) (12.4)
1,189

(36.9)
3,705 IDI
3,940 (39.7)
3,712 (38.7)
LOP
EE
M, BE, O
CAR, EAR, G

4,758 (47.3)
4,299 (43.3) 4,159 (43.4)

2009 2010 2011

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Premiums and Claims 2011 per Country (excl. IDI)
US$ Mill Loss Ratio (%)
0 500 1000 1500 2000
2009 2010 2011
Finland 47 73 58
Sweden 41 52 53
Taiwan 65 67 32
SouthAfrica Claims 55 46 42
Austria Premiums 86 56 66
Mexico 60 38 39
Netherlands 45 53 50
Spain 64 91 101
UK 32 33 34
Switzerland 43 47 41
Australia 50 50 73
Turkey 107 115 101
Brazil 23 22 25
Canada 18 23 29
Italy 45 49 44
USA 29 26 31
Japan 45 46 50
Russia 16 12 13
Germany 72 74 74
4
IDI - Premiums and Claims 2011 per Country
US$ Mill
0 20 40 60 80 100
Finland
Sweden
Taiwan
Claims
Note: Premiums
SouthAfrica
Only two countries reported Loss Ratio (%)
Austria
IDI premium and losses 2009 2010 2011
Netherlands
Mexico
52
Spain 82 15 32 63
UK 0.25 0 0 0
Switzerland
Australia
Turkey
Brazil
Canada
20
Italy 68 14 6 29
USA
Japan
Russia
Germany
5
Premiums / Claims / Large*) Claims – Total Amount
Loss Ratios – all Lines of Business (LoB) 2009 - 2011
Premiums
US$ Mill Loss Ratios for all claims
Claims total and large claims in % Claims total
Large Claims
Large Claims

100
9,926 10,054
9,593
80

60 48.8 50.4
47.1

4,671 4,680 5,065 40

20 8.3 8.3 7.1

0
824 792 717 2009 2010 2011
2009 2010 2011

*) Note: Large Claims >= 1.0 Mill US$

6
Premiums / Claims / Large*) Claims
Loss Ratios – M, BE, O 2009 - 2011
Premiums
US$ Mill Loss Ratios for all claims
Claims total and large claims in % Claims total
Large Claims
Large Claims

3,940 100
3,711 3,705
90
80
70
60 55.0 56.9
51.5
2,169 2,109
1,912 50
40
30
20 11.6 8.3 7.7
455 10
309 289 0
2009 2010 2011
2009 2010 2011

*) Note: Large Claims >= 1.0 Mill US$

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Premiums / Claims / Large*) Claims
Loss Ratios – LoP 2009 - 2011
Premiums
US$ Mill Loss Ratios for all claims
Claims total and large claims in % Claims total
Large Claims
Large Claims

110
100
358 90
319 307 80 73.5
68.0
70 63.2
244 60
226
201 50
40
30
20 9.9
35 10 5.0 3.7
16 12 0
2009 2010 2011 2009 2010 2011

*) Note: Large Claims >= 1.0 Mill US$

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Premiums / Claims / Large*) Claims
Loss Ratios – EAR, CAR, Guarantee 2009 - 2011
Premiums
US$ Mill Loss Ratios for all claims
Claims total and large claims in % Claims total
Large Claims
Large Claims

100

4,758 90
4,299 4,160
80
70
60
46.5 44.2
50 40.5
2,102 40
1,932
1,743
30
20 10.1
7.4 7.4
320 421 354 10
0
2009 2010 2011 2009 2010 2011

*) Note: Large Claims >= 1.0 Mill US$

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Premiums / Claims / Large*) Claims
Loss Ratios – EE 2009 - 2011
Premiums
US$ Mill Loss Ratios for all claims
Claims total and large claims in % Claims total
Large Claims
Large Claims

100
90
1,189 80
1,103 1,082
70
60
47.1 47.1 49.8
50
40
519 560 538
30
20
10 2.7 4.1 3.9
30 49 42
0
2009 2010 2011 2009 2010 2011

*) Note: Large Claims >= 1.0 Mill US$

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Premiums / Claims / Large*) Claims
Loss Ratios – IDI 2009 - 2011
Premiums
US$ Mill Loss Ratio for claims total
Claims total and large claims in % Claims total
Large Claims
Large Claims
100,0
90,0
265
80,0
226 70,0
60,0
47.7
151 50,0
40,0
30,0 22.4
72
51 20,0 14.7
39
10,0
3 1 0 1.2 0.6 0
0,0
2009 2010 2011 2009 2010 2011

*) Note: Large Claims >= 1.0 Mill US$

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Number of Large Claims per LoB 2007 - 2011

250
241
17 209
14
202 198 Total Engineering
2 1
200 17
17 17
6 15
5

150 127 122 IDI

1 86 EE
96 102
16 LoP
100 CAR. EAR. G
52
M.BE.O

50 88 91 79 75
58

0
2007 2008 2009 2010 2011

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Large Claims - Cause of Loss: all LoB 2007 - 2011
A) Faulty Operation C) Faulty Design E) Explosion G) Other Causes
B) Faulty Material and D) Fire F) Natural Hazards
Workmanship

350
US$ Mill
300

250

200

150

100

50

0 A B C D E F G A B C D E F G A B C D E F G A B C D E F G A B C D E F G
2007 2008 2009 2010 2011

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Large Claims - Cause of Loss: M, BE, Others 2011

A) Faulty Operation C) Faulty Design E) Explosion G) Flood and Inundation

B) Faulty Material and D) Fire F) Storm H) Earthquake
Workmanship
I) Others
US$ Mill
100 93
90
78
80
70
60
60
50
40
30 27

20
12 11
10 4 0 0
0
A B C D E F G H I

14
Large Claims - Cause of Loss: LoP 2011

A) Faulty Operation C) Faulty Design E) Explosion G) Flood and Inundation

B) Faulty Material and D) Fire F) Storm H) Earthquake
Workmanship I) Others
US$ Mill

30

25

20

15
11
9 10
10

5 4
1
0 0 0 0
0
A B C D E F G H I

15
Large Claims - Cause of Loss: EAR, CAR,
Guarantee 2011
A) Faulty Operation C) Faulty Design E) Explosion G) Flood and Inundation
B) Faulty Material and D) Fire F) Storm H) Earthquake
Workmanship I) Others
US$ Mill

120
101
100

80
66
60
40 42
40 34 33
22
20 17
0
0
A B C D E F G H I

16
Large Claims - Cause of Loss: EE 2011

A) Faulty Operation C) Faulty Design E) Explosion G) Flood and Inundation

B) Faulty Material and D) Fire F) Storm H) Earthquake
Workmanship I) Others
US$ Mill
50
45
40
35 32
30
25
20
15
10 7
5 3
0 0 0 0 0 0
0
A B C D E F G H I

17
Large Claims - Cause of Loss: IDI 2011

A) Faulty Operation C) Faulty Design E) Explosion G) Flood and Inundation

B) Faulty Material and D) Fire F) Storm H) Earthquake
Workmanship I) Others
US$ Mill
50
45
40
35
30
25
20
15
10
5
0 0 0 0 0 0 0 0 0
0
A B C D E F G H I

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Large Claims – Main Items affected per LoB 2011

A) Turbo Generator Sets E) Production Machinery and Process H) Electronic Equipment

B) Boilers and Pressure Vessels Equipment I) Civil Engineering Works
F) Lifting and Transportation
C) Compressors and other mechanical plants
Equipment J) Erection of Plants
D) Electrical Machines and Equipment G) Chemical Plants K) Other Property

US$ Million

140 133

120
104
100

80 75

60
44 45
40 42
40 34 32 32
22 22
20 10 10 1211 13
5 5 7 3 3 65
2
0
A B C D E F GH I J K A BC D E F GH I J K A B CD E F G H I J K A B C D E F G H I J K A B C D E F G H I J K
M. BE. O LoP EAR. CAR. G EE IDI
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Key to the abbreviations
BE Boiler Explosion
CAR Contractor‘s All Risks
EAR Erection All Risks
EE Electronic Equipment
G Guarantee
IDI Inherent Defects (Decennial) Insurance
LoB Line of Business
LoP Loss of Profits (MLoP & ALoP)
M Machinery Breakdown
O Others
Please note
All figures are based on information supplied to IMIA by its Member countries. It should be borne in mind that these figures may not
always contain IBNR provisions, and that premium patterns may vary between reporting member countries and companies.
Inherent Defects Insurance (IDI), also called Decennial Insurance in French speaking countries, is written only in a few countries. It is
a compulsory class of business in some of these. Due to the different legal situation and others specifics, the scope of cover varies
greatly from country to country. Therefore any attempt to make comparisons is very difficult and may lead to wrong conclusions.
Since IDI contracts grant cover for material damage caused by latent defects for a period of (usually) ten years as from completion of
the contract works, special attention needs to be given to the issue of premium earning patterns during the policy duration. These
patterns vary considerably from country to country and are even regulated in some of them by the insurance supervisory body. IMIA
is not in a position to reflect the various regulations governing the administration of this line of business in the various countries nor
can IMIA validate the method used by its members in establishing their figures.
Therefore IMIA recommends to adopt particular care when drawing conclusions from premiums, claims figures and loss ratios
reported herein especially in respect of IDI. For further details it is recommended to contact the IMIA-delegate from a particular
member country to obtain more accurate information on the particulars of a specific line of business in his country.
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