Source: Splash247
Date: 8th September 2025

IUMI warns of fragmented trade patterns reshaping risk, premiums, and industry practices.

At the International Union of Marine Insurance (IUMI) annual conference in Singapore, the organisation highlighted how geopolitical tensions and shifting trade patterns are redefining the global landscape for marine insurers.

The council warned that the era of seamless globalisation is giving way to fragmentation, driven by conflicts, tariff policies, and regional rivalries.

This transition does not mark the end of international trade, but rather its transformation into a more complex and regionalised system, one that requires insurers to rethink risk assessment and underwriting strategies.

According to IUMI, these changes are already evident in vessels rerouting to avoid conflict zones, rising logistics costs, and supply chains being reorganised around nearshoring and inland transport.

The sector is also seeing an increased reliance on technology such as artificial intelligence, alongside the development of alternative trade corridors and emerging markets.

While these shifts present challenges, they also create opportunities for innovation in marine insurance practices, infrastructure investment, and strategic diversification.

The conference also reported that global marine insurance premiums reached $39.92 billion in 2024, up 1.5% year on year.

Cargo insurance accounted for the largest share at $22.64 billion, followed by ocean hull, offshore energy, and marine liability.

Persistent risks, including fires on car carriers and container vessels, continue to pressure the market, while the ageing global fleet is raising machinery-related claims.

Organisations such as IUMI and the Nordic Association of Marine Insurers cautioned that delayed scrapping of older vessels may exacerbate these risks, underscoring the need for proactive industry adaptation in the years ahead.