A stable cargo marine insurance market but uncertainty looms, warns IUMI
Summary
At IUMI’s annual conference in Singapore Mike Brews, Chair of the IUMI Cargo Committee, described the global cargo marine insurance market as stable for 2024 but flagged significant uncertainty ahead. Global cargo premiums reached USD 22.64 billion in 2024, up 1.6% year‑on‑year. Loss ratios have been improving across most regions since 2018, and there were no major catastrophic losses in 2024.
Brews noted persistent sector challenges — cargo accumulations, mis‑declared cargoes, the transition to net‑zero and war‑related risks — and warned that tariffs are beginning to reshape insured values and trade flows. Tariffs could push insured values (and risk accumulations) up by as much as 50% in North America, with knock‑on effects elsewhere. He also observed rising market capacity and some softening as underwriters take larger risks at competitive premiums, but underwriting remains profitable and is attracting new investment.
Context and relevance
This update is relevant to shippers, brokers, underwriters and risk managers. Stable premium income and improving loss ratios give the market breathing space, but changing trade patterns driven by tariffs and geopolitics could quickly alter exposures, concentrations and pricing. Insurers and clients should watch tariff developments and shifting supply chains for potential rapid changes in risk profiles.
Source
Key Points
- Global cargo premiums for 2024 were USD 22.64 billion, a 1.6% increase on 2023.
- Loss ratios have improved across most regions since 2018; 2024 had no major catastrophic losses.
- Main ongoing vulnerabilities: cargo accumulations, mis‑declared cargoes, net‑zero transition and war‑related risks.
- Tariffs are starting to affect insured values and trade flows; insured values could rise up to 50% in North America.
- Shifting trade routes and destinations may change risk concentrations — insurers will need to adapt to new routes, ports and storage exposures.
- Market capacity is increasing; some underwriters are offering larger risks at competitive premiums, producing some softening but attracting fresh investment.
- Tariffs and geopolitical tensions remain the primary threats that could destabilise market stability and profitability if they materially reshape trade.
Why should I read this?
Want the quick take? If you move, insure or underwrite cargo, this affects your bottom line. The market looks calm now, but tariffs and geopolitics could flip exposures and premiums fast. We skimmed the conference so you don’t have to: useful intel on where risks — and price shocks — might come from next.
