The President of the International Union of Marine Insurance (IUMI), Frédéric Denèfle, during the opening of the union's annual conference in Rotterdam, assessed the state of the marine insurance market and emphasized the need for insurance companies to be prepared to face new challenges. He stated that while the overall market is performing well, insurers must remain vigilant to the forces that affect global trade and the risks arising from them.
Growth of the Marine Insurance Market and Existing Challenges
Denèfle said: "The shipping and cargo markets are indicative of growth in premium income, although the marine energy sector remains relatively quiet." He pointed to the lack of disruptions caused by U.S. tariffs and added that the global economy has proven to be more resilient than anticipated. However, Denèfle noted the increasing risks of war, additional capacities that intensify competition, and ongoing inflationary pressures.
The IUMI President continued: "Despite these challenges, marine insurers are still able to provide coverage in all high-risk areas globally. Changes in the geopolitical landscape are likely to impact the future of global trade and, consequently, create risks that marine insurers must cover."
The Role of Insurers in the Decarbonization Process and Digital Transformation
Denèfle also emphasized the importance of insurers' role in supporting the decarbonization process in the transportation industry. He stated: "Insurance companies must be at the forefront of decarbonizing transportation, despite the challenges we have faced so far."
Frédéric Denèfle predicted that technological changes, particularly in data standards, digitalization, and artificial intelligence, will have a significant impact on how marine insurance operates. He noted: "I see a day when our sector will be able to provide global cargo insurance certificates in a fully digital and standardized manner that meets the needs of our financial institutions and clients."
He also pointed out that artificial intelligence will increasingly impact this industry, saying: "Artificial intelligence will change how we operate. This technology will make us smarter and more efficient, and we must fully embrace and utilize this new technology."
Denèfle concluded by acknowledging the historical relationship between IUMI and the Netherlands, praising the country for hosting the annual conference. He said: "The Netherlands has hosted our conference five times in recent history and has provided two IUMI Presidents. Insurance professionals from the Netherlands have significantly contributed to our union during their membership."
The IUMI President also referred to the ongoing developments of the union over the past year, including the expansion of the secretariat and further growth in advocacy, policy-making, learning, and market analysis.
