IUMI president Frédéric Denèfle said marine insurers face growing uncertainty from war risks, competition, inflation and changing trade routes despite continued premium growth
The global marine insurance market remains stable, although geopolitical and technological change is reshaping the risks insurers are being asked to cover, according to the International Union of Marine Insurance.
Opening IUMI’s annual conference in Rotterdam, president Frédéric Denèfle said hull and cargo premium income had continued to grow, supported in part by the weaker US dollar, while offshore energy remained comparatively subdued.
“The hull and cargo markets have shown growth in terms of premium income, although the offshore energy sector remains relatively subdued,” Denèfle (pictured) said.
“US trade tariffs haven’t caused the disruptions we feared, and the world economy was more resilient than anticipated. But there is considerable uncertainty from increasing war risks, additional capacity bringing greater competition and continued inflationary pressure.”
He stressed that uncertainty around free trade and global commerce remained an important consideration for the market.
Denèfle said marine insurers had continued to provide cover in higher-risk regions but would need to adapt as geopolitical tensions alter trading patterns.
“As insurers, we must be prepared to insure tomorrow’s trades and trade routes, including those being introduced to avoid areas of tension and conflict,” he said.
“We also need to understand the new markets that will inevitably emerge as a result of geopolitical developments.”
Denèfle also highlighted shipping decarbonisation as an area where insurers would need to remain closely involved.
“Insurers must take a leading position on the decarbonisation of shipping, despite the hiccups we have experienced so far on this journey,” he said.
Technology was another major theme, with Denèfle pointing to growing use of digitalisation, data standards and artificial intelligence.
“I see a day, not too far in the future, when our sector will be able to offer fully digitised and standardised global cargo insurance certificates that meet the requirements of financial institutions and our customers,” he said.
He added: “AI is going to change how we operate. It will make us smarter and more efficient, and we will need to embrace and adopt this new technology wholeheartedly.”
Despite the scale of change, Denèfle said the sector remained well positioned to respond.
“Despite all this change, our sector remains strong, agile and ready to adapt,” he added.
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