Our Spring Statistics commentary is now available from the link at the bottom of this page. Here is an abstract from the Chairs and Vice – Chairs of the Ocean Hull, Cargo and Offshore Energy Committees:
Cargo Insurance by Mike Brews
The global cargo insurance market remains under significant strain in 2025. Although some regions have seen improvements thanks to more disciplined underwriting, premiums are under pressure to cover losses. Accumulation risks in mega ports, ultra-large container vessels, and complex supply chains are increasingly hard to model. There is growing concern around blurred lines between marine and property insurance, particularly in Stock Throughput (STP) policies. The shift toward digitalised logistics adds new vulnerabilities including data security and business interruption. Technical pricing gaps persist, with many risks still assessed on outdated loss history instead of current exposures. However, signs of returning capacity suggest that market dynamics may be shifting.
Ocean Hull Insurance by Ilias Tsakiris & Paul Fry
The global fleet has grown to unprecedented levels but this expansion brings challenges. Driven by new mega-ship deliveries, the world fleet reached 2.4 billion deadweight tons in 2024. Yet this growth masks overcapacity in key sectors, especially containers and bulkers. An influx of new orders shows technological ambition but adds uncertainty around operational reliability and claims. Meanwhile, scrapping rates remain historically low. With less than 330 ships recycled last year, aging vessels continue to operate raising underwriter concerns over rising machinery-related claims. Older tonnage is being kept in service longer due to geopolitical detours but a sudden easing of tensions could trigger a wave of obsolescence and urgent recycling.
Offshore Energy Insurance by Michele Cibrario
Offshore upstream activity is gaining momentum, with new deepwater drilling and gas-related infrastructure surging. But with oil prices now hovering around $70 per barrel investment decisions are becoming more cautious. OPEC’s planned production increases could stabilise markets but also dampen new project enthusiasm. Meanwhile, the upstream insurance market is softening, supported by relatively low claims in offshore construction, where losses remain problematic. There is new momentum to the energy sector: carbon capture, geothermal, and onshore renewables are now part of the offshore insurers’ remit. What is needed are underwriters with a broader skill set as the boundaries between marine, energy and engineering insurance continue to dissolve.
Download the full document: Summer Stats Update 2025-05
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