Abstract

Marine insurance provides financial protection against losses arising from damage, deterioration, or destruction of goods during transportation and storage. Cargo storage conditions can influence the physical condition of insured goods and may affect the extent of losses when covered incidents occur. Factors such as temperature, humidity, ventilation, storage duration, handling practices, and protection from environmental hazards may therefore have implications for the severity of marine insurance claims. The study examines the effect of cargo storage conditions on marine insurance claim severity. It will assess how variations in storage conditions influence the financial magnitude of claims arising from insured cargo losses. The study will also examine the relationship between storage conditions, extent of cargo damage, claim amounts, and overall loss severity. The study will focus on cargo storage conditions, marine insurance claim severity, cargo damage, storage duration, temperature conditions, humidity, ventilation, handling practices, claim amounts, insured cargo, loss severity, and marine insurance exposure. Historical marine insurance claims and cargo storage records containing storage conditions, cargo characteristics, reported damages, and claim settlement amounts will be examined using appropriate actuarial and statistical techniques. A quantitative research approach will be adopted for the study. Data will be obtained from marine insurance claims records and relevant cargo storage information, including storage conditions, cargo types, storage periods, damage incidents, claim amounts, and settlement records. Descriptive statistics, correlation analysis, regression analysis, claim severity analysis, and probability distribution techniques will be employed to evaluate the relationship between cargo storage conditions and marine insurance claim severity. The study is expected to reveal that unfavourable cargo storage conditions may be associated with higher marine insurance claim severity. Poor temperature control, excessive humidity, inadequate ventilation, prolonged storage, and unsuitable handling conditions may contribute to greater levels of cargo damage and consequently higher claim amounts. Differences in cargo type, storage duration, environmental conditions, and the nature of the damage are also expected to contribute to variations in claim severity. The findings may provide useful information to marine insurers, actuaries, underwriters, cargo owners, warehouse operators, shipping companies, and risk management professionals. The results may support improved assessment of cargo risks, premium determination, claims forecasting, loss prevention, underwriting decisions, and reserve estimation. The study may also assist insurers in incorporating storage-related characteristics into marine insurance risk assessment and claim severity models. The study concludes that cargo storage conditions are important considerations in estimating the severity of marine insurance claims. It is therefore recommended that insurers and cargo owners regularly assess storage conditions and incorporate relevant environmental and handling factors into risk assessment procedures. Effective management of cargo storage conditions may help reduce potential losses and improve the accuracy of marine insurance claim severity estimates.

Keywords: Cargo storage conditions, marine insurance claim severity, marine insurance, cargo damage, storage duration, temperature conditions, humidity, ventilation, cargo handling, claim amounts, loss severity, insured cargo, insurance exposure, actuarial risk assessment, marine claims analysis.