Global marine insurance premiums experienced a rise of 5.5%, reaching $42.6 billion in 2025. However, the market continues to face challenges from increased competition, excess capacity, and currency fluctuations, as outlined in a recent report by the International Union of Marine Insurance (IUMI).
According to the IUMI's annual Stats Report released on Tuesday, most major insurance lines saw premium growth, attributed to the expansion of global fleets, increased vessel values, and a greater demand for war risk coverage.
Nonetheless, IUMI warned that a large part of this growth was due to the weaker U.S. dollar, rather than a real improvement in market conditions.
Ocean hull insurance premiums rose by 9.4% to $10.5 billion, fueled by fleet expansion, higher ship values, and additional war risk premiums. However, the growth of fleets continued to outstrip premium increases, indicating ongoing competitive pressures for insurers.
The marine cargo insurance segment remains the largest, with premiums increasing by 6.9% to $24.2 billion. This growth is supported by rising seaborne trade and shifts in commodity and asset values—especially in China, where exports of high-value technology, like AI-related products and semiconductors, have boosted demand.
Offshore energy insurance premiums stayed almost the same, with a slight increase of 0.1% to $4.82 billion. London continues to dominate this market with a 62.7% share, including a growing focus on renewables.
“In 2025, the marine insurance market saw modest growth in global premiums, despite soft underlying conditions,” stated IUMI Secretary General Lars Lange. “Factors like increased capacity, competitive pressures, and the weak U.S. dollar have all affected the reported premium levels.”
Claims activity remained steady in 2025, with no major catastrophic events significantly impacting any specific insurance sector. However, the accumulation of smaller claims was still a concern for profitability.
Looking forward, IUMI cautioned that geopolitical tensions are becoming more significant in marine insurance markets for 2026, particularly as the conflict in the Middle East disrupts shipping and raises the demand for war risk coverage.
War insurance has gained more attention due to ongoing attacks on commercial shipping, while the availability of energy carriers has diminished amid increased security risks in the region.
“As we look ahead, geopolitical tensions are continuing to shape the market into 2026,” Lange commented. “War coverage has become more important while vessel availability, especially for energy carriers, has tightened due to escalating conflict in the Middle East.”
Despite worries that tariffs would severely limit international trade, IUMI noted that the impact has been less drastic than expected, and global economic growth has exceeded forecasts.
Asia remains the leader in marine insurance market growth, with China as the largest contributor in the region. European markets are also expanding but at a slower pace.
The report also includes updates to IUMI's Major Claims Database, which now contains around 7,200 cargo claims totaling $11.4 billion in losses. This database, contributed to by thirty national insurance associations, tracks claims going back to 2013.
Additionally, IUMI has introduced a revised Hull Inflation Index to help insurers gauge the rising costs of vessel repairs through broader economic indicators.