The IUMI Stats Report, our annual analysis of the global marine insurance market, was finalised and published in October. The report provides insights into the state of the marine insurance sector, examining it within the broader context of the global economy, trade, and shipping. Drawing on data from various sources, including IUMI's own, we present a detailed look at how the sector has performed in 2023.
2023 was a solid year for the marine insurance market. Growth in global trade, particularly in cargo and vessel values, boosted premium levels across most lines. The offshore energy sector also benefited from more stable oil prices. However, geopolitical tensions – including the ongoing conflict between Russia and Ukraine and disruptions in the Red Sea - have caused shifts in shipping routes and operations. Despite these challenges, insurers have managed to maintain stability with fewer severe claims impacting overall performance. While large vessel fires, especially on containerships and car carriers, continue to be a concern, the claims environment has been relatively manageable, supported by easing inflation and central banks lowering interest rates.
Premium growth reflects several factors, including rising trade volumes, vessel values, and global economic conditions. Yet, as marine risks evolve - driven by larger vessels, technological advancements, and changing fuel types - insurers must remain vigilant. Additionally, as shipping routes shift due to conflicts, the rerouting of vessels around Africa is a prime example, the risk landscape is further altered.
2024 and beyond has seen – and will likely see - the marine insurance sector face new challenges. Geopolitical tensions are expected to persist, along with the impact of the US election, climate change, and the introduction of zero-carbon fuel technologies. Cyber risks are also emerging as a growing threat. Despite these uncertainties, the marine insurance market has shown resilience, and we believe underwriters will continue to adapt to these shifting dynamics.
We thank our partners for their valuable assistance and input in compiling our annual statistics, particularly CEFOR (Nordic Association of Marine Insurers). Read the full analysis in the IUMI Stats Report, which also includes data from our ongoing Major Claims Database project in partnership with the Boston Consulting Group. It is freely available from our website.