Global Marine Insurance Premiums Hit Record $39.92 Billion in 2024, But Growth Slows as Challenges Loom
The global marine insurance market reached an all-time high of $39.92 billion in premiums in 2024, a 1.5% increase from the previous year, as revealed at the International Union of Marine Insurance (IUMI) conference in Singapore on September 8, 2025. However, the industry faces headwinds, with growth slowing significantly from 5.9% in 2023 and 8.3% in 2022, signaling a potential shift in momentum. Here’s a deep dive into the key drivers, challenges, and implications for U.S. stakeholders in this critical sector.
Record Premiums, But a Slower Climb
The marine insurance sector’s record-breaking $39.92 billion top line reflects robust demand driven by global trade, rising asset values, and geopolitical shifts. Cargo insurance remains the dominant force, accounting for 56.7% of premiums ($22.64 billion, up 1.6%), followed by hull and machinery (24.2%), offshore energy (10.9%), and marine liability (8.2%).
Despite the milestone, the decelerating growth rate has raised concerns. “The surge is losing pace,” noted IUMI statistician Veith Huesmann, citing softening rates in key segments like cargo and hull. Overcapacity, shifting trade routes, and inflationary pressures are reshaping the industry’s outlook, particularly for U.S. insurers and businesses reliant on maritime trade.
Key Drivers and Regional Shifts
Cargo Dominance and China’s Rise: Cargo insurance, fueled by global trade and commodity price fluctuations, continues to lead. China solidified its position as the largest cargo market, generating 17.6% of premiums, followed by Lloyd’s (9.7%) and the U.S. (6.9%). Asia-Pacific, led by Chinese underwriters, drove 60% of 2024’s premium growth, narrowing the gap with Europe, which still holds the largest market share but is losing ground.
Hull Market Pressures: The hull and machinery segment faces rising loss ratios, climbing for five consecutive years due to rerouting around the Cape of Good Hope, which exposes ships to harsher weather, and an aging global fleet inflating repair costs. The Nordic region leads with a 12.9% share, followed by China (11.6%) and Lloyd’s (8.7%).
Geopolitical and Environmental Risks: War-risk premiums spiked in high-tension zones like the Strait of Hormuz (up 60%) and Israel’s coastal ports (tripled), reflecting geopolitical instability. Stricter IMO emissions regulations and climate-driven weather events are also pushing demand for specialized coverage, like environmental and cyber insurance.
Challenges: Overcapacity and Rising Claims
Overcapacity is a double-edged sword. In cargo insurance, stable attritional claims have lowered loss ratios for seven years, attracting new capital and re-entrants, which intensifies competition and softens rates. Conversely, hull insurance faces deteriorating loss ratios, with incidents like the Baltimore bridge collapse in March 2024 driving up costs and prompting P&I clubs to plan 5–7% rate hikes for 2025.
Inflation and aging fleets further complicate the picture. Repair costs are rising, and owners delaying ship scrapping increase the risk of total losses. The industry also grapples with cybersecurity threats and stricter environmental regulations, necessitating innovative coverage solutions.
U.S. Implications: Economic and Strategic Stakes
For U.S. businesses, the marine insurance market’s dynamics are critical. The U.S., with a 6.9% share of global cargo premiums, relies heavily on maritime trade, which supports $5.4 trillion in annual economic activity, per the American Association of Port Authorities. Rising premiums, especially in war-risk zones, could increase shipping costs, impacting industries like retail and energy.
U.S. insurers, such as the American P&I Club, are responding with a 7% rate hike for 2025 to address inflation and claims trends. This could squeeze smaller operators, raising costs for American consumers. Politically, the sector’s stability matters for trade policy, as disruptions in key corridors like the Red Sea could strain U.S. supply chains, a concern as midterm elections approach.
Public and Expert Reactions
The IUMI findings sparked lively discussion on X. @MaritimeInsider tweeted, “$40B milestone is huge, but softening rates could hurt insurers long-term.” Conversely, @TradeWatchUSA noted, “Good news for shippers—competition might keep premiums in check.” Industry voices like Claire Hoole of Circle Marine told Insurance Business that markets are split, with some pushing 5–10% rate increases while others hold steady.
Analysts at S&P Global predict P&I clubs will face combined ratios of 100–105% in 2025, signaling potential underwriting losses due to rising claims. This has prompted calls for stricter underwriting discipline to balance growth and profitability.
Looking Ahead: A Market at a Crossroads
The marine insurance market’s record premiums mask underlying challenges. With growth projected to reach $45.4 billion by 2029 at a 7.3% CAGR, technological advancements like AI for risk assessment and blockchain for transparent claims could drive efficiency. However, geopolitical tensions, environmental regulations, and overcapacity will test the industry’s resilience.
For U.S. stakeholders, the focus is on navigating rising costs while leveraging opportunities in Asia’s growing market. As the sector adapts, one thing is clear: the record highs of 2024 are just the start of a complex voyage. Insurers and businesses must innovate to stay afloat in these turbulent waters.