In 2024, global marine insurance premiums reached $39.92 billion, marking a 1.5% increase compared to the previous year, according to the latest annual statistics from the International Union of Marine Insurance.
This growth, however, varied significantly across different sectors. While hull and cargo insurance remained steady, the offshore energy sector faced a notable decline, with premiums dropping by 7.9% to $4.34 billion, reversing several years of growth in this area.
Ocean hull premiums increased by 3.5%, reaching $9.67 billion. Europe continued to dominate this market, showing consistent growth since 2019. Notably, the Russian hull market saw a remarkable 42% increase, largely due to sanctions that restricted the country's ability to transfer insurance risks abroad.
Cargo insurance premiums also rose slightly, by 1.6%, totaling $22.64 billion. However, the growth was limited due to wider economic and trade conditions. China stood out as a strong performer in this segment, and loss ratios improved for the sixth consecutive year.
The IUMI report reveals that London holds 60% of the marine insurance market, while the Nordic region was the only area to gain market share in 2024, with a growth rate of 27%. Various challenges, such as low oil prices, sanctions, decarbonization efforts, and market capacity issues, impacted the sector.
“Our data for 2024 indicates that both the ocean hull and cargo markets have been relatively stable with little positive movement,” stated IUMI Secretary General Lars Lange. “The offshore energy sector continues to face difficulties due to low oil prices and reduced capital spending in certain areas.”
Lange emphasized that all marine insurance lines are under increasing pressure as 2024 moves into 2025. “Geopolitical and trade tensions have created a level of uncertainty that is unprecedented, involving war risks, tariffs, and other economic measures,” he noted.
The weak US dollar is impacting premium income while raising claims costs for insurers dealing with payouts in currencies other than the US dollar. Other challenges include requirements for fleet decarbonization, an aging global fleet with an average vessel age nearing 23 years, climate change effects, large vessel fires, and accumulating risks.
IUMI's Major Claims Database has data from 2013 onwards, contributed by 30 national insurance associations for hull and cargo analysis, with over 17,400 observations recorded.
For the first time, the report has introduced a revised IUMI Hull Inflation Index aimed at helping insurers explain marine repair cost inflation using macroeconomic indicators.
The International Union of Marine Insurance represents 42 national insurance and reinsurance associations in the marine market.