Global Marine Insurance Premiums Reach $42.6 Billion as Competition Keeps Market Soft

Global marine insurance premiums rose 5.5% to $42.6 billion in 2025, but increased competition, excess capacity and currency fluctuations continued to weigh on the market, according to a new report from the International Union of Marine Insurance (IUMI).

The figures, published Tuesday in IUMI’s annual Stats Report, show premium growth across most major insurance lines, supported by expanding global fleets, higher vessel values and rising demand for war risk coverage.

However, IUMI cautioned that much of the reported growth reflected the weaker U.S. dollar rather than an underlying strengthening of market conditions.

Ocean hull insurance premiums increased 9.4% to $10.5 billion, driven by fleet expansion, higher ship values and additional war premiums. Even so, fleet growth continued to outpace premium growth, pointing to sustained competitive pressure on insurers.

Marine cargo insurance remained the largest segment, with premiums rising 6.9% to $24.2 billion. Growth was supported by seaborne trade and changes in commodity and asset values, particularly in China, where exports of high-value technology, including AI-related equipment and semiconductors, helped drive demand.

Offshore energy insurance premiums were virtually unchanged at $4.82 billion, an increase of just 0.1%. London retained its dominant position with a 62.7% market share, including a growing renewables component.

“The 2025 marine insurance market recorded modest growth in global premiums, although underlying conditions remained soft,” said IUMI Secretary General Lars Lange. “Increased capacity, competitive pressures and currency movements, particularly the weakness of the US dollar, all influenced reported premium levels.”

Claims activity remained relatively stable during 2025, with no single catastrophic event significantly affecting an individual insurance sector. However, the accumulation of smaller claims continued to pressure profitability.

Looking ahead, IUMI warned that geopolitical tensions are playing an increasingly important role in marine insurance markets in 2026, particularly as the conflict in the Middle East disrupts shipping and increases demand for war risk coverage.

War insurance has become increasingly prominent as attacks on commercial shipping continue, while the availability of energy carriers has tightened amid heightened security risks in the region.

“Looking ahead, geopolitical tensions continued to shape the market into 2026,” Lange said. “War cover became increasingly prominent while vessel availability, particularly for energy carriers, tightened as conflict in the Middle East intensified.”

Despite concerns that tariffs would significantly constrain international trade, IUMI said the impact had been less severe than initially anticipated, while global economic growth exceeded expectations.

Asia continued to lead growth in the marine insurance market, with China remaining the region’s largest contributor. European markets also expanded, although at a slower pace.

The report also updates IUMI’s Major Claims Database, which now includes approximately 7,200 cargo claims representing a cumulative $11.4 billion in losses. Thirty national insurance associations contribute to the database, which tracks claims dating back to 2013.

IUMI also introduced a revised Hull Inflation Index designed to help insurers assess rising vessel repair costs using broader economic indicators.