Marine Insurance Premiums Reach $40 Billion as Offshore Energy Sector Struggles

Global marine insurance premiums reached $39.92 billion in 2024, representing a 1.5% increase over the previous year, according to the International Union of Marine Insurance’s latest annual statistics report released today.

The modest growth masked significant divergence across business lines. While hull and cargo insurance remained stable, the offshore energy sector experienced a sharp 7.9% contraction in premium volumes, falling to $4.34 billion, and reversing several years of premium growth.

Ocean hull premiums climbed 3.5% to $9.67 billion, with Europe maintaining its market dominance and reporting unbroken growth since 2019. The Russian hull market saw exceptional expansion of 42%, driven largely by sanctions that prevented the country from placing insurance risks overseas.

Cargo insurance premiums edged up 1.6% to $22.64 billion, though growth remained subdued due to broader economic and trade conditions. China emerged as a particularly strong performer in this segment, while loss ratios improved for the sixth consecutive year.

IUMI’s report shows London continues to control 60% of this market, with the Nordic region the only area to expand its share in 2024, posting 27% growth. Pressured oil prices, sanctions, decarbonisation initiatives and market capacity all contributed to the sector’s challenges.

“Our data relating to 2024 shows that the ocean hull and cargo markets have been relatively stable with little positive development,” said IUMI Secretary General Lars Lange. “The offshore energy sector continued to struggle as a result of a low oil price and a reduction in capex spend in some regions.”

Lange highlighted mounting pressures facing all marine insurance lines as 2024 progressed into 2025. “Geopolitical and trade tensions have generated an unprecedented level of uncertainty involving war risks, tariffs and other economic measures,” he said.

The weak US dollar is squeezing premium income while adding to claims costs for insurers paying out in non-US dollar currencies. Additional challenges include fleet greening requirements, an aging global fleet with average vessel age approaching 23 years, climate change impacts, large vessel fires and risk accumulations.

IUMI’s Major Claims Database now contains data from 2013 onward with 30 national insurance associations contributing to hull and cargo analysis, with more than 17,400 observations recorded.

For the first time, the report introduced a newly revised IUMI Hull Inflation Index designed to help insurers explain marine repair cost inflation using macroeconomic indicators.

The International Union of Marine Insurance represents 42 national and marine market insurance and reinsurance associations.

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