The global marine insurance market is navigating a period of transition, with new capital and increased competition shaping the sector across regions and business lines, according to the Munich Re Marine Market Survey 2025.
The report notes that marine insurance markets continue to provide essential products and services that support international trade and commerce.
Munich Re observes that, after several years of correction, the ocean marine insurance sector is seeing new entrants and expanded capacity. This influx is driving broader terms and heightened competition in various marine lines. Restrictive and protectionist trade measures are influencing exposures in cargo, hull, and marine liability segments.
Geopolitical risks remain a significant factor for the sector, particularly in relation to marine war and strikes, riots and civil commotion (SR&CC) coverages. Ongoing conflicts, including the Russia-Ukraine war, Israel-Hamas war, and hostilities involving Iran, have contributed to market volatility.
The Houthi attacks in the Red Sea, which resulted in casualties and the loss of merchant vessels Eternity C and Magic Sea in July 2025, are cited as recent examples of the risks facing the industry.
“On a global scale, the marine market has become more competitive due to the influx of new capital and the reemergence of broker portfolio facilities. Underwriters are well advised to exercise underwriting discipline, proper risk management and accumulation control,” said Markus Spielmann, global head of marine reinsurance at Munich Re.
Cargo lines are contending with several challenges, including the risk of unknown accumulation in ports and on vessels, the trend toward larger ships, and exposure to natural catastrophe risks. Munich Re points out that secondary and non-peak perils, particularly for static exposures, are an area of concern for insurers.
The global cargo marine insurance market remains stable, but there is growing uncertainty stemming from tariffs and shifting trade patterns, according to the International Union of Marine Insurance (IUMI).
Tariffs are beginning to reshape cargo values and supply chains, which may alter risk accumulations and insured values, especially in North America. Changes in trade flows could force insurers to adapt to new ports and storage facilities, each carrying different risk exposures.
The marine insurance sector reached a record premium volume of nearly US$40 billion in 2024, but growth momentum is slowing, and there are signs of softening in core lines. Industry leaders have noted that the influx of new capacity is driving fierce competition, with some markets inviting renewals on level terms while others are pushing for rate increases or higher deductibles.
Marine liability lines have experienced notable losses, such as those stemming from the Dali Baltimore Key Bridge allision. The report highlights the impact of legal system abuse and social inflation, driven by the US legal environment and increasingly seen in other jurisdictions.
Hull and machinery insurance is facing rising claims costs, with inflation and cargo vessel fires, including the Morning Midas incident, contributing to the trend. Munich Re also identifies the rapid growth of lithium-related exposures, such as electric vehicles and battery energy storage systems, as a source of new risk. Lithium-ion batteries present challenges due to the potential for thermal runaway, fire, and toxic gas release.
Protection and indemnity lines are managing ongoing demands, including wreck removal and seafarer welfare. The yacht and recreational marine segment is growing, but faces persistent issues with loss activity, inflation, and natural catastrophes. Fire risk remains a concern for luxury yachts outside of classed categories.
What are your thoughts on this story? Please feel free to share your comments below.
