Cargo loss ratios have declined for seven straight year, which has contributed to steadier underwriting results. (Credit: Kalyakan/Adobe Stock)
At their most recent conference, the International Union of Marine Insurance (IUMI) revealed premiums in the global marine insurance industry hit a historical $39.92 billion in 2024. While this number sets a new record for the sector, it is just about 1.5% higher than the prior year, which marks a slowdown for premium growth in the sector following growth of 8.3% and 5.9% in 2022 and 2023, respectively.
Cargo insurance makes up the majority of these premiums with 56.7% of the market, followed by hull and machinery at 24.2%, offshore and energy at 10.9% and marine liability at 8.2%, according to Lloyd's List.
Europe continues to lead the marine insurance sector with about 60% of the market, though its share has fallen overall. This contrasts with the Asia/Pacific region, particularly Chinese underwriters, that are gaining upward momentum. Cargo premiums generated by China now comprise about 17.6% of global premiums compared to the United States at 6.9% and Japan at 5.9%. Lloyd’s UK cargo operations account for about 9.7% of the market.
Lloyd's reports that overall, Asia was responsible for 60% of the marine insurance market’s growth in 2024. The IUMI believes this is a long-term trend and does not predict any sudden changes in this market shift.
Cargo loss ratios have declined for seven straight years, which has contributed to steadier underwriting results. However, hull loss ratios have climbed for the last five years as overcapacity and a softened market have emerged.
Lloyd’s reports that issues like rerouting of cargo ships — particularly those that navigate around the Cape of Good Hope in order to avoid the Red Sea — have led to an increase in weather damage. The aging state of the world’s fleets have also factored into premium shifts as more owners are opting to keep ships longer due to cost inflation, which increases the risk of loss.
Despite premiums in the sector hitting an all-time high, underwriters still face mounting pressures that will force them to balance growth, pricing and exposure.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.