The International Union of Marine Insurance (IUMI) has reported a stable marine cargo insurance market at its annual conference in Singapore, with global cargo premiums reaching $22.64 billion in 2024—a 1.6% increase from the previous year.
Despite this growth, Mike Brews, Chair of the IUMI Cargo Committee, cautioned that uncertainty looms due to potential tariff impacts.
Brews highlighted that the cargo market’s stability is reflected in the consistent improvement of cargo loss ratios since 2018 and a benign claims environment in 2024. However, he noted that challenges such as cargo accumulations, mis-declared cargoes, the transition to net-zero, and war-related risks persist.
“The cargo market remains stable in terms of global premium income,” Brews stated, acknowledging a significant increase from China, attributed to corrections in previously under-reported insurance.
Looking forward, Brews emphasised the potential impact of tariffs, which could increase insured values and associated risks by up to 50%, particularly in North America. This could lead to shifts in trade flows, disrupting established shipping patterns and requiring insurers to adapt to new routes and risk profiles.
Despite an increase in market capacity and some market softening, Brews remains optimistic about cargo underwriting’s profitability, which continues to attract investment. However, he warned that tariffs and geopolitical tensions could pressure market stability and profitability if they reshape trade routes, costs, and volumes.
