Global marine cargo insurance premiums rose 6.9% to $24.2bn in 2025, but the market continued to soften as capacity and competition increased, Hellenic Shipping News reported, citing research from the International Union of Marine Insurance (IUMI). The rise extended a multi-year increase in premiums without necessarily signalling stronger underlying market conditions.
Speaking at IUMI’s annual conference in Rotterdam, Cargo Committee chair Mike Brews said much of the increase reflected the US dollar’s depreciation against European currencies. Asia, particularly China, accounted for most of the underlying growth. He said favourable claims experience supported loss ratios, but market softening had carried into 2026, with excess capacity putting rates under pressure, especially in Europe.
Europe remained the largest regional cargo insurance market, although its lead over Asia narrowed. The gap between their premium shares fell to 3.3 percentage points in 2025 from 7.8 percentage points in 2024. European headline premium growth owed much to currency effects, with the euro roughly 13% stronger against the dollar, rather than substantial underlying expansion.
China’s growth was supported by insurance products linked to domestic e-commerce and returns, alongside high-value exports including electric vehicles, photovoltaics and lithium batteries. Singapore recorded premium growth of 13%, partly supported by high-tech goods and semiconductor cargoes passing through the city-state, according to the research reported by Hellenic Shipping News.
Claims performance varied considerably by region. European loss ratios continued falling to about 40%, while Latin America’s gradual improvement since 2017 brought its ratio to around 45%. Asia’s ratio remained on an upward path dating from 2020, reaching just under 70%. The US ratio dropped to approximately 40% from around 75% a year earlier, although some under-reporting could partly explain that decline.
IUMI cautioned that the ratios largely cover paid claims and generally omit case reserves and losses incurred but not yet reported, which could substantially reduce future profitability. No cargo losses in 2025 were large enough to materially affect the wider market. Brews also said tariffs had affected cargo insurance less than anticipated: insured values remained resilient and volumes slowed less sharply than expected. Competition, rather than major claims activity, remained the main influence on market conditions.