Non-Life Marine Vessel Collision Risk

Overview

Article 130 treats vessel collision risk as a largest-vessel concentration within marine catastrophe risk.^[1]

Input Terms

• Vessel: Identifier for each vessel exposure considered under Article 130.^[1]
• Vessel Collision SI: Sum insured for the vessel collision exposure under the Article 130 marine catastrophe basis.^[1]

Technical Rationale

Article 130 focuses vessel collision risk on the largest vessel collision sum insured because a catastrophic vessel collision is a single-event concentration stress. The maximum-exposure basis preserves the severity of the largest vessel loss rather than averaging it across the marine portfolio.