Hull Deductibles on Car Carriers, Reset
Hull rates are soft in 2026, yet underwriters take a firmer line on car carriers. Terms and deductibles, not headline rates, are where that shows.
The hull market going into 2026 favours buyers: WTW expected flat to 5% average rate reductions as new syndicates and MGAs added capacity. Car carriers are the exception underwriters keep naming. The Swedish Club's 2026 terms promise 'a firmer stance towards older units, car carriers and container trades with dangerous goods exposure'. When rates are falling across the market, that firmness shows up in terms, conditions and deductibles rather than in the headline rate.
What does the 2026 hull market data actually show?
A soft market with a stubborn claims problem. The Nordic Marine Insurance Statistics, reported by IUMI in September 2026, show hull claims costs at an elevated level for a fourth consecutive year, with the return of major losses, mostly fires, and above-average repair inflation as the drivers. Engine-related fires occur two to three times more often on passenger, container, car carrier and ro-ro ships than on bulk carriers and tankers. At renewal, car carrier and ro-ro values fell the most of any segment, by 10.2% on average.
Why would deductibles move when rates do not?
Because the deductible is where an underwriter can hold a line without losing the account on price. In a soft market, competition pushes rates down; an underwriter who is wary of a segment keeps the rate competitive and asks the owner to retain more of each loss instead, or attaches conditions to the cover. Falling insured values point the same way: a deductible that stays fixed in dollars is a larger share of a smaller hull value, so the owner carries more of every partial loss even if nothing on the schedule changes.
Brokers publish rates and values; they rarely publish deductible levels by segment, and individual terms are confidential. So the direction here is well supported but the size of any change is specific to each owner's renewal. Treat any single headline multiple with caution.
Where does the deductible bite in a fire?
In the fires that stay small enough not to be total losses. A hull that becomes a total or constructive total loss is paid out on its insured value, and the deductible is a minor part of the story. The owner's retained cost concentrates in the partial fires: a deck damaged, a few dozen vehicles burned, the ship repaired and back in service. MV Delphine at Zeebrugge in April 2025 was that kind of fire, with 60 to 70 vehicles lost while CO2 held the rest. Every such claim is reduced first by the deductible, and each one sits on the owner's record at the next renewal.
What can an owner do at renewal?
Price the deductible against the fleet's own fire frequency, and bring evidence that frequency and severity are being managed. The choice of a higher deductible for a lower rate only pays if partial fires are rare and small. Loading controls, detection above the SOLAS minimum, and records showing how quickly alarms are verified and acted on are the evidence underwriters can weigh when the market is looking for reasons to be firm on car carriers.
How RoRoSAFE helps
The owner's retained cost sits in the partial fires, the ones early detection is meant to keep small. RoRoSAFE flags a battery or electrical event at the vehicle before visible smoke, while suppression can still limit it, and records every alert in tamper-evident logs an underwriter can review. It is new capital expenditure judged on avoided loss, installed alongside the berth without drydock.
Pilot: one deck · installed alongside the berth · no drydock · 6 months of dashboard access
Sources
- 1. WTW — 'Insurance Marketplace Realities 2026: Marine Hull & Liability' (October 2025): buyer-friendly market, new capacity, flat to 5% average rate reductions.
- 2. The Swedish Club — 'Hull & Machinery Insurance Terms 2026': terms tailored to individual performance and exposure; 'a firmer stance towards older units, car carriers and container trades with dangerous goods exposure'; claims development 'severity-led, with several major fires'.
- 3. IUMI newsletter, September 2026 — 'Elevated cost of hull claims', Nordic Marine Insurance Statistics as of 30 June 2026: fourth consecutive year of elevated hull claims costs; engine fires two to three times as frequent on passenger, container, car carrier and ro-ro vessels as on bulk carriers and tankers; car carrier/ro-ro values down 10.2% on average at renewal.
- 4. MV Delphine, Zeebrugge, April 2025: 60–70 vehicles lost with CO2 suppression operating as designed. As analysed in 'MV Delphine: Anatomy of a Contained Loss'.
- 5. Gallagher — Hull and Machinery Market Update Q4 2025: fires and groundings leading large-loss severity in 2025.
Questions, answered
Are hull insurance rates for car carriers rising in 2026?+
The wider hull market is softening, with WTW expecting flat to 5% average reductions as new capacity arrives. Car carriers are singled out for firmer treatment: The Swedish Club's 2026 terms name them alongside older ships and dangerous-goods container trades. That firmness tends to appear in terms and deductibles rather than in the headline rate.
Why do deductibles matter more than premiums after a fire?+
Because most fires are partial losses. A total loss is paid on insured value, but a fire that damages a deck and a few dozen vehicles is reduced first by the deductible and then counts against the owner's record. The owner's retained cost is concentrated in exactly those smaller fires.
Have hull deductibles on car carriers gone up since 2022?+
The direction is toward firmer terms for car carriers, but brokers rarely publish deductible levels by segment and individual terms are confidential. Falling insured values, down 10.2% on average for car carriers and ro-ro at renewal, also mean a fixed deductible is a larger share of the hull. The size of any change depends on each owner's renewal.
How can an owner negotiate better hull terms?+
Price the deductible against the fleet's own fire frequency, and bring evidence that fires are being caught early: loading controls, detection above the SOLAS minimum, and records of how quickly alarms are verified and acted on. That is what underwriters can weigh when they are looking for reasons to be firm on car carriers.
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