Global marine insurance premiums totaled $39.92 billion in 2024, a 1.5% increase compared to the previous year, according to new data released by the International Marine Insurance Union (IUMI). The IUMI attributed this growth primarily to international trade activity and fluctuations in asset and commodity prices. Oil prices, being both a major commodity and a significant revenue source, directly impact cargo and offshore energy insurance.
Veith Huesmann, chief analyst at IUMI, said, "Since 2016, premiums in Asia have steadily increased thanks to new product lines and growing intra-regional trade. In contrast, Europe and Latin America seem to have plateaued since 2023,".
Europe holds the largest market share at 46.96%, followed by Asia-Pacific (29.79%), Latin America (10.19%), North America (7.75%), the Middle East (3.53%), and Africa (1.38%). By sector, cargo insurance accounts for 57.23% of total premiums, followed by hull (23.51%), offshore energy (11.71%), and marine liability (7.55%).
The hull insurance market reached $9.67 billion, a 3.5% increase compared to 2023. Europe maintains a dominant 52.91% market share, while Asia has generally plateaued, although China saw 9% growth due to new ships insured domestically.
Global offshore energy premiums decreased by 7.9% to $4.34 billion, with the UK continuing to dominate with a 67.33% market share. This market remains in a downturn that has persisted for the past five to six years, primarily due to non-renewed contracts and limited new orders.
The IUMI also highlighted long-term industry challenges: an aging global fleet, the risk of fires on car and container carriers, misdeclared cargo, the trend toward alternative fuels, and rising claims costs due to inflation. Geopolitical and trade tensions continue to create instability in shipping and marine insurance.
Jun Lin, chair of the IUMI Statistics Committee, stated, "The marine insurance sector remains stable, but faces numerous headwinds, from trade fluctuations to the pressure of energy transition and an aging fleet,".
The Dan (PortCalls Asia)
