Global Marine Insurance Premiums Reach Record $40bn as Growth Slows

By
Mfame Editor
-
23

  • Growth slows sharply from 2022 and 2023 levels.
  • Cargo remains the top segment with a 56.7% share.
  • Europe loses ground as Asia drives 60% of 2024 growth.

Global marine insurance premiums hit a record high of $39.92 billion in 2024, as reported by IUMI statistician Veith Huesmann during the conference in Singapore. This marks a 1.5% increase from 2023, although the growth rate has slowed down compared to the 5.9% seen in 2023 and 8.3% in 2022, reports Lloyd’s List.

Segment Breakdown

  1. Cargo: 56.7% of total premiums
  2. Hull & Machinery (H&M): 24.2%
  3. Offshore and Energy: 10.9%
  4. Marine Liability: 8.2%

Cargo continues to lead as the largest segment, with H&M coming in a close second.

Regional Market Trends

Europe remains the dominant player in the market, but it’s gradually losing ground to the Asia-Pacific region, especially China. In fact, Asia accounted for 60% of the overall growth in 2024, a trend that IUMI sees as a long-term shift.

Leading Cargo Markets by Country

  1. China: 17.6%
  2. Lloyd’s: 9.7%
  3. US: 6.9%
  4. Brazil: 4.7%
  5. Germany: 4.7%
  6. London companies: 4.3%

Largest Hull Markets

  1. Nordic bloc: 12.9%
  2. China: 11.6%
  3. Lloyd’s: 8.7%
  4. Singapore: 7.9%
  5. London companies: 7.4%

Loss Ratio Developments

For the seventh year in a row, cargo loss ratios have been on a steady decline, thanks to stable attritional losses that are attracting more capital and boosting competition. On the flip side, H&M’s loss ratios have been climbing for five years, largely due to weather-related damages, ageing fleets, and rising costs.

Market Pressures and Overcapacity

The market is facing overcapacity, which has led to softer pricing conditions. The emergence of managing general agents and follow markets is ramping up the competition. Additionally, rerouting around the Cape of Good Hope, prompted by risks in the Red Sea, has resulted in a spike in weather damage claims.

Offshore and Energy

The UK retains dominance in offshore energy insurance:

  1. London companies: 31.6%
  2. Lloyd’s: 30%
  3. Brazil: 8.1%
  4. Mexico: 8%

Although loss ratios have fallen sharply since 2020, high utilisation of offshore vessels has led to a significant uptick in attritional losses. Overcapacity continues to pressure premiums downward.

Protection & Indemnity (P&I)

Evaluating P&I trends can be tricky because of new reporting standards that leave out fixed-premium products. However, market insiders indicate that mutual premiums are expected to rise by over 3% between the 2023/24 and 2024/25 policy years.

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Source: Lloyd’s List