Ilias P. Tsakiridis, Chairman of the Ocean Vessel Insurance Committee, analyzed the state of the ocean vessel insurance market at the annual conference of the International Union of Marine Insurance (IUMI) in Rotterdam. According to recent IUMI research, the total premium volume for ocean vessels reached $10.5 billion in 2025, representing a 9.4% increase compared to the previous year.
Key Trends in the Insurance Market
Tsakiridis pointed out that this increase should be viewed in a broader context. Fleet growth, high values, and currency fluctuations have all contributed to this increase. He also warned that the growth in premiums should not be seen as a sign of strengthening rates or better underwriting profitability. Despite the increase in premium income, the ocean vessel insurance market continues to soften.
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Regional Market Conditions and Challenges
The growth of premiums in major regional markets has been relatively uniform, with Europe and Asia experiencing increases of around 6 to 7 percent, respectively. While Latin America has performed better, its share of the global ocean vessel insurance market remains significantly lower. Additionally, global fleet growth continues to slow, and it is expected to reach around 3% by the end of 2026.
Given that the rate of vessel obsolescence has increased and the average age of a commercial vessel has reached 22.4 years, there are greater pressures on ocean vessel insurers. Older vessels typically require more maintenance, and the shortage of spare parts, especially for older ships, increases loss costs.
Tsakiridis also noted the impact of geopolitical developments on global shipping patterns, stating that tensions and conflicts, particularly in the Middle East, have caused many vessels to change course. He also mentioned the rise in piracy activities as a serious risk that needs to be addressed.
He concluded by stating, "Our market is characterized by a growing fleet, high values, a changing geopolitical landscape, and the potential for significant losses. While we are witnessing global premium growth, the underlying story is a softening market accompanied by a set of complex risks."
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