Global marine insurance premiums rise but underlying market remains soft, says IUMI

Global marine insurance premium income increased by 5.5% in 2025 to USD 42.6 billion, according to the latest market analysis from the International Union of Marine Insurance (IUMI), presented yesterday at its annual conference in Rotterdam.

The headline increase, however, masks a continuing soft market across most marine insurance business lines, IUMI said. Currency movements, increased capacity and competitive pressures have all contributed to underlying market conditions remaining challenging for insurers.

Global premium income in 2025 was distributed across the major marine insurance regions as follows: Europe 46.5%, Asia/Pacific 30.8%, Latin America 10%, North America 7.2%, Middle East 3.5% and Africa 2.1%.

Transport/cargo remained the largest business line, accounting for 57% of global premiums, followed by ocean hull at 24.7%, offshore energy at 11.1% and marine liability, excluding P&I business covered by the International Group of P&I Clubs, at 7.3%.

Commenting on the figures, IUMI Chief Analyst Veith Huesmann (pictured) said: “Changes in marine insurance premium income are generally driven by factors such as global trade volumes and commodity prices for cargo, vessel values for hull and oil prices and activity levels in the offshore energy sector.

“Although we report an increase in global premium income, 2025’s reporting figures are heavily supported by exchange rate effects. The weakness of the US dollar has had a significant impact on the global figures, with major reporting currencies appreciating by around 7-13%. Once currency effects are taken into account, the market remains soft across all major business lines, with increased capacity adding to competitive pressure in most sectors.

“The claims environment has remained relatively stable, with no catastrophic loss significantly affecting any sector of the market. However, attritional losses continue to build and are eroding profitability, particularly in ocean hull.

“More broadly, tariffs have not acted as the brake on global trade that some commentators had predicted, while stronger-than-expected global GDP growth has been broadly positive for marine insurance. We can also observe first signs of the AI race with high value semiconductors being traded. An effect that we’ll observe even more so in next year’s figures.

“The most significant market development continues to be in Asia, where premium income has grown steadily since 2016, with China firmly in the driving seat. European growth has continued but is increasingly being outpaced by Asia.”

Summing up, Jun Lin, Chair of IUMI’s Facts & Figures Committee, said: “Geopolitical uncertainty continues to affect all marine insurance business lines, while inflationary pressures, largely driven by oil prices, are adding to the challenges. We have yet to see any significant impact on consumer confidence in the data, but this may emerge over time.

“The depreciation of the US dollar is also having a global impact. It has the potential to mask an underlying softening of the insurance market and, depending on the currencies in which claims are paid, can also increase claims costs. At the same time, we are seeing record levels of insurance and reinsurance capacity, intensifying competition and putting further pressure on profitability.

“On the positive side, seaborne trade continues to grow, as does the global merchant fleet. Capital expenditure in offshore oil and gas and renewables is also increasing, while insured values and charter/day rates are generally rising.

“Despite growth in the global premium base, significant headwinds {for insurers] remain across all marine insurance lines and the overall market continues to be soft.”