The International Union of Marine Insurance (IUMI) has released its latest annual review, and while global marine insurance performed steadily in 2024, the outlook for the remainder of 2025 is notably more challenging.
According to IUMI, the global marine insurance premium base for 2024 reached USD 39.92 billion, representing a modest 1.5 % increase over 2023. Among the lines of business, ocean hull premiums rose by 3.5 % to USD 9.67 billion and cargo premiums increased by 1.6 % to USD 22.64 billion. In contrast, the offshore energy segment contracted by approximately 7.9 % to USD 4.34 billion.
Several key trends and risk-drivers stand out:
- Geopolitical, trade and economic tensions have intensified, creating an unprecedented level of uncertainty across global seaborne trade.
- Growth in seaborne trade has slowed after the rapid surge seen in previous years, while inflationary pressures have eased somewhat — yet the mood remains cautious.
- The ordered fleet continues to grow (around 4 % in value), but scrapping remains low and the average fleet age is increasing — raising exposure to claims tied to ageing assets.
- Risk accumulations, large-vessel size, vessel fires, mis-declared cargoes, and exposure to high-risk zones continue to weigh on underwriting.
- Currency and inflation dynamics matter: A weakening US dollar squeezes premium income for insurers paying claims in other currencies, while rising underlying costs challenge loss ratios.
Regional breakdowns from IUMI show Europe held 46.96 % of world premium income in 2024, Asia-Pacific 29.79 %, Latin America 10.19 %, North America 7.75 %, Middle East 3.53 % and Africa 1.38 %. By business line, transport/cargo accounted for 57.23 % of premiums, hull 23.51 %, offshore energy 11.71 % and marine liability 7.55 %.
While the hull and cargo lines remain relatively stable, IUMI emphasises that “headwinds loom for all markets for the remainder of 2025.” The offshore energy line remains under particular pressure, reflecting subdued investment, oil-price weakness and cap-ex reductions.
Did you subscribe to our daily Newsletter?
It’s Free — Click here to Subscribe!
Source: Safety4Sea
