MARINE & CARGO INSURANCE
Average (marine) definition
Average in marine insurance is a partial-loss concept that distinguishes between general average (a sacrifice or expenditure made for the common safety, shared among all interests in the adventure) and particular average (a partial loss falling on a single interest).
In practice, in marine insurance, the term ‘average’ refers to one of two types of partial loss: general average or particular average. See Also: average, general, particular. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in insurance market analysis, policy wording and risk transfer decisions. It helps users interpret insurance terminology consistently across markets, policies and risk data. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Average (marine) is closely related to general average, particular average, marine insurance and cargo insurance. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Insurance market analysis, policy wording and risk transfer decisions.
- Purpose
- Helps users interpret insurance terminology consistently across markets, policies and risk data.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- general average, particular average, marine insurance and cargo insurance.
Example of average in marine insurance
Cargo is deliberately jettisoned to protect a vessel and the remaining cargo. The resulting loss may be treated as a marine average issue and shared according to the relevant marine insurance rules.