I was delighted to attend the first IUMI MENA Forum last month hosted by the Insurance Federation of Egypt (IFE) in Cairo. More than 150 attendees heard from a range of speakers who delivered in-depth examinations of marine insurance in the region as well as discussions on the future of our sector in Africa. Coupled with this was a well-structured roundtable on ESG principles and how to build a marine insurance underwriting policy aligned with those principles.
The IFE became an IUMI member in 1979 and this long partnership reflects the importance of Egypt to the international marine insurance community. The Suez Canal is the lifeline of Asia/Europe trade and our Forum gave a unique opportunity for the IUMI Executive Committee to meet with the Suez Canal Authority. Our discussions focused on the importance of the canal as a conduit of international trade and the supporting role of marine insurers. It was highlighted how the marine insurance sector has continued to provide support for both hull and cargo interests throughout the current, challenging period. We learnt more about the reduction in canal transits in 2024 as a direct result of Houthi action and the fact that traffic has not yet recovered to pre-war levels. It was hoped that the situation would continue to improve and we were confident that insurance cover would continue to be provided.
More broadly, restrictions on international trade are creating added complexity for shipping and the movement of goods. In some markets we are seeing increased exports in an attempt to grow stock levels to avoid the possible impact of any future tariffs. Whilst this is supportive of shipping activity and freight rates, the situation could reverse rapidly and uncertainty remains. Such uncertainty is a very real concern and could spell the beginning of a global recession with a downturn in international trade.
Although it is good to see a continuing reduction in vessel total losses, we mustn’t lose sight of the fact that, sadly, casualties are still happening – such as the recent collision between the MV Solong and MW Stella off the UK coast.
Aside from war risks, we are facing a potential downturn in shipping activity which we must face alongside traditional risks such as marine casualties and their financial consequences.
We will discuss all of this, and more, at our annual conference in Singapore in September under the common theme of “Charting opportunities in changing tides”
These are fascinating times for our marine insurance community and I look forward to seeing you in Singapore. Meantime, I wish you all a particularly good summer.
