Global marine insurance premiums rose 5.5% in 2025, but currency effects, excess capacity and competition continued to weigh on underlying market conditions.
Global marine insurance premium income rose 5.5% to $42.6 billion in 2025, but the market remained soft as currency movements, increased capacity and competition weighed on insurers, the International Union of Marine Insurance (IUMI) said on Tuesday.
IUMI presented its latest market analysis at its annual conference in Rotterdam, saying the headline increase in premiums was significantly influenced by exchange-rate movements. Major reporting currencies appreciated by about 7% to 13% against the U.S. dollar during the period.
“Although we report an increase in global premium income, 2025’s reporting figures are heavily supported by exchange rate effects,” IUMI Chief Analyst Veith Huesmann said.
“Once currency effects are taken into account, the market remains soft across all major business lines, with increased capacity adding to competitive pressure in most sectors,” he said.
Europe accounted for 46.5% of global marine insurance premiums, followed by Asia-Pacific at 30.8%, Latin America at 10%, North America at 7.2%, the Middle East at 3.5% and Africa at 2.1%.
Cargo remained the largest business line, accounting for 57% of global premiums, followed by ocean hull at 24.7%, offshore energy at 11.1% and marine liability, excluding protection and indemnity business covered by the International Group of P&I Clubs, at 7.3%.
Cargo
Cargo premiums rose 6.9% to $24.2 billion in 2025, IUMI said.
China was a major contributor to growth, with its cargo premiums rising 19% during the year. IUMI attributed the increase partly to new products linked to the country’s growing e-commerce sector and return-insurance schemes, as well as exports of electric vehicles, photovoltaic products and lithium batteries.
Asia accounted for 36.4% of global cargo premiums, narrowing the gap with Europe, which held a 37.6% share.
The difference between the regions fell to 3.3 percentage points in 2025 from 7.8 percentage points in 2024, IUMI said.
Cargo loss ratios varied significantly by region. Europe’s fell to about 40%, while Latin America’s stood at around 45%. Asia’s rose to just below 70%, continuing an upward trend since 2020.
The reported U.S. loss ratio fell to about 40% from around 75% in 2024, although IUMI said the figure may partly reflect under-reporting.
The absence of major catastrophic losses and largely contained attritional losses supported a stable claims environment in 2025. Competitive pressure and additional capital from managing general agents continued to weigh on cargo insurance rates, IUMI said.
Ocean hull
Global ocean hull premiums increased 9.4% to $10.5 billion in 2025, with Europe accounting for 51.3% of the market.
China has maintained strong growth since 2016, supported partly by the increasing volume of Chinese-built vessels being insured domestically, IUMI said.
Despite higher premium income, global fleet growth continues to outpace growth in the ocean hull premium base, indicating continued pressure on the underlying market.
Europe’s loss ratio was estimated at about 60% in 2025, while Asia reported approximately 50%. Latin America recorded a significant reduction and the U.S. loss ratio improved to around 50%.
Global fleet growth is expected to reach about 3% by the end of 2026, while the average vessel age has risen to 22.4 years. IUMI said ageing vessels are increasing maintenance and repair costs while making spare parts less readily available.
Currency movements and fleet growth also need to be considered when assessing the increase in ocean hull premiums, IUMI said.
War-related premiums associated with attacks in the Red Sea have also affected some 2025 figures, although reporting practices can make it difficult to separate war premiums from bluewater hull coverage.
Offshore energy
Global offshore energy premiums were virtually unchanged at $4.82 billion in 2025, rising 0.1% from the previous year.
The UK remained the largest offshore energy market, accounting for 62.7% of global premiums. IUMI said the country also accounts for roughly 30% of the global renewables insurance market, although the figure is an estimate.
Offshore energy has remained in a soft market cycle for six or seven years, with the absence of major losses contributing to low loss ratios early in 2025. IUMI said those ratios could change as claims mature.
The global energy sector is entering a significant investment cycle driven by energy security concerns, geopolitical tensions and the transition to lower-carbon energy sources. These developments are increasing the value and complexity of risks facing insurers.
Inflation, higher claims costs, excess capacity and competitive pricing continue to pressure profitability, IUMI said.
Outlook
Geopolitical uncertainty, inflation and currency movements remain key challenges for marine insurers, while rising insurance and reinsurance capacity is intensifying competition, said Jun Lin, chair of IUMI’s Facts & Figures Committee.
“The depreciation of the US dollar is also having a global impact,” Lin said. “It has the potential to mask an underlying softening of the insurance market and, depending on the currencies in which claims are paid, can also increase claims costs.”
Seaborne trade and the global merchant fleet continue to grow, while capital spending on offshore oil and gas and renewable energy is increasing, IUMI said.
Insured values and charter and daily rates are also generally rising, but Lin said significant challenges remain across marine insurance lines.
“Despite growth in the global premium base, significant headwinds remain across all marine insurance lines and the overall market continues to be soft,” Lin said.