The global marine insurance market has reached a record high, with total premiums approaching $40 billion in 2024. However, industry leaders warn that the growth momentum is slowing, with signs of softening in key sectors.
At the International Union of Marine Insurance (IUMI) annual conference in Singapore, figures showed that global premiums rose 1.5% last year, reaching US$39.92 billion. While this sets a new record, it contrasts with stronger growth of 5.9% in 2023 and 8.3% in 2022.
“Markets have different approaches: some renew policies on level terms, some seek 5–10% increases, and others add higher excesses,” said Claire Hoole of Circle Marine.
Cargo insurance remains the largest segment, accounting for 56.7% of total premiums. Hull and machinery make up 24.2%, offshore energy 10.9%, and marine liability 8.2%.
By territory, China is the biggest single cargo market, generating 17.6% of premiums, followed by Lloyd’s at 9.7% and the United States at 6.9%. Brazil and Germany, both at 4.7%, slightly outpace the London companies market at 4.3%. While Europe still leads in overall market share, Asia-Pacific, driven by Chinese underwriters, is steadily closing the gap. Asia accounted for 60% of premium growth in 2024, highlighting the region’s rising influence.
Loss ratios in cargo insurance have improved for the seventh consecutive year, thanks to stable claims. This has attracted new capital and encouraged former market participants to return. Yet, increased capacity has intensified competition.
The hull and machinery sector faces different challenges. Loss ratios have risen each year for the past five years. Ships rerouting around the Cape of Good Hope encounter harsher weather, while an ageing fleet and rising repair costs increase the likelihood of total losses.
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