The global marine energy insurance market faced significant challenges in 2025, with total premiums reaching $4.8 billion, reflecting a slight increase of 0.1% compared to the previous year. This increase was primarily due to currency fluctuations and changes in the business mix, rather than actual market expansion.
Strong Presence of the London Market
The London market, which includes Lloyd's and the International Underwriting Association (IUA), continues to maintain its dominance, accounting for about 60% of global marine energy premiums. This share remained generally stable in 2025. However, Michel Sabariou, Chair of the IUMI Marine Energy Committee, warned that premium increases in some regional markets should be considered in light of currency fluctuations and the structure of international underwriting.
Challenges and Opportunities in the Insurance Market
Despite apparent increases, the marine energy insurance market remained highly competitive in 2025, with available capacity outpacing demand. Many insurers are seeking growth despite profitability pressures. The loss environment has also been relatively calm, with no major losses reported that could significantly impact the market. However, minor losses are on the rise and gradually reducing profitability under coverage.
Overall, loss ratios at the beginning of 2025 remained at very low levels, and these ratios are expected to change over time as losses mature. Claims activities in 2026 have increased compared to the previous year.
Looking ahead, there is a likelihood of increased investment costs in the energy sector in 2026. This is primarily due to energy security concerns, and many offshore sites have yet to return to full operation. With increased investment and reconstruction, insurers are likely to face new risks in construction, testing, and commissioning. Renewable energies also present significant opportunities, although profitability challenges remain.
Nearly two-thirds of the $3.3 trillion global investment in energy in 2025 was allocated to renewables, and 2026 is expected to confirm this trend.
In conclusion, Sabariou stated, "The global energy market is entering a period of significant investments driven by energy security, geopolitical tensions, and the transition to low-carbon energy. Investment in oil and gas, LNG, and new energy infrastructure will lead to increased value and complexity of the risks that insurers cover.
