Steady Insurance Markets For Hull And Cargo In 2024 But Offshore Energy Business Is Challenged – Headwinds Loom For All Markets, Reports IUMI
Summary
The International Union of Marine Insurance (IUMI) presented its 2024 market analysis in Singapore. Global marine insurance premium income reached USD 39.92 billion, up 1.5% year-on-year. Cargo remains the biggest line (57.23% share), followed by hull (23.51%) and offshore energy (11.71%).
Key trends: cargo premiums edged up on steady trade and Chinese e-commerce growth; hull premiums rose by 3.5% with Europe continuing to dominate; offshore energy premiums fell 7.9% as the market stays soft and investment slows. New capacity entered many segments while claims were overall benign in 2023–24, though risks such as large vessel fires, groundings and ageing tonnage are rising.
Key Points
- Global marine insurance premium base for 2024: USD 39.92 billion (+1.5%).
- Cargo dominates premiums (US$22.64bn, +1.6%) — Asia/Pacific share growing versus Europe.
- Ocean hull premiums: USD 9.67bn (+3.5%); Europe accounts for the majority of hull business.
- Offshore energy premiums fell to USD 4.34bn in 2024 (‑7.9%), reflecting a prolonged soft cycle and reduced new business.
- New capacity entering markets is easing pricing pressure, supported by improved loss ratios in cargo and hull.
- Major emerging exposures: ageing fleet, fires on car carriers/containers, alternative fuels and new technologies, and geopolitical trade disruptions.
- Economic factors — oil price, exchange rates, interest rates and a weakening US dollar — are shaping premium income and claims costs.
Context and Relevance
IUMI’s analysis is a timely snapshot for insurers, brokers, shipowners and energy investors. The report highlights where premium growth and margin relief are occurring (cargo and hull) and where pressures persist (offshore energy). It links macro drivers — trade flows, oil prices, currency moves and interest rates — to insurance market dynamics, and flags operational risks from an ageing global fleet and new technical challenges as the sector decarbonises.
Why should I read this?
Short and blunt — if you touch marine insurance, shipping operations or offshore projects, this saves you digging through raw figures. It tells you who’s paying more, who’s pulling back, and what risks are quietly getting worse (fires, groundings, ageing ships). Handy for quick strategy tweaks or risk-appetite decisions.
Author style
Punchy: concise market numbers with clear implications. For industry readers this is highly relevant — it flags where premiums and capacity are moving and why offshore remains under pressure. Worth reading the detail if you manage risk, underwriting or marine operations.
