The International Union of Marine Insurance (IUMI) has released its 2025 Stats Report, revealing steady performance in the global hull and cargo insurance markets throughout 2024, while the offshore energy sector experienced a significant downturn.
According to the report, total global marine insurance premiums amounted to US$39.92 billion in 2024, marking a 1.5% increase compared to 2023. This modest growth was largely driven by strong results in the hull and cargo insurance sectors, which offset a drop in premiums within offshore energy lines.
Hull and Cargo Insurance Maintain Solid Growth
Ocean hull premiums increased by 3.5% year-on-year, reaching US$9.67 billion. This rise was driven by higher vessel values and stable activity across key global shipping regions. Europe remained the dominant market for hull insurance, maintaining a consistent loss ratio and continuing its growth trajectory since 2019. Russia’s domestic hull market saw a sharp 42% growth, as international sanctions on the country restricted access to foreign insurers, thereby forcing local risk retention.
Cargo insurance premiums also saw modest growth, rising 1.6% to US$22.64 billion. The increase was attributed to the expansion of global trade volumes and higher shipment values, particularly in China, which outpaced other markets. Loss ratios in the cargo sector improved for the sixth consecutive year, indicating stronger technical results and sustained underwriting discipline.
Offshore Energy Sector Faces Contraction
In contrast, the offshore energy insurance segment saw a decline of 7.9% in premium income, falling to US$4.34 billion in 2024. This marked a reversal from the recent growth in this line, driven by a combination of lower oil prices, reduced capital expenditure, and ongoing pressure to decarbonise.
Despite this downturn, London retained its position as the leading market, holding a 60% share of the offshore energy sector. The Nordics were the only region to report growth, with premiums rising by 27% over the year.
Enhanced Data Tools to Support Underwriting Insights
The report also highlighted the continued development of IUMI’s Major Claims Database, which now includes over 17,400 records from 30 national insurance associations. Additionally, the newly revised IUMI Hull Inflation Index provides valuable insights into the impact of repair cost inflation and other macroeconomic trends influencing underwriting results.
IUMI Secretary General Lars Lange stated that while 2024 had brought stability to the hull and cargo sectors, insurers are likely to face “significant headwinds” going into 2025. He pointed to ongoing geopolitical tensions, climate risks, and the financial effects of currency fluctuations and ageing fleets as factors likely to impact results in the coming year.
(IUMI)