The marine cargo insurance market in 2025 reached $24.2 billion, marking a 6.9% increase from the previous year. This data indicates a softening of the market despite the overall growth of the insurance base.
Growth of Marine Cargo Insurance and the Impact of Currency Fluctuations
According to new research from the International Union of Marine Insurance (IUMI), the 6.9% growth in premiums should be examined under specific conditions. Mike Bruce, Chair of the IUMI Cargo Committee, stated at the annual conference in Rotterdam that the decline in the value of the US dollar against European currencies accounts for a significant portion of this growth, and in fact, the real growth is more driven by Asia, particularly China.
Bruce continued, "We are also facing additional capacity and increased competition, which has contributed to the softening of the market. However, the claims environment remains favorable, as reflected in the loss ratios. Overall, the cargo market softened in 2025, and this trend has continued into 2026 as well."
Regional Impacts and Growth of Key Markets
Europe still accounted for the largest share of the global cargo market in 2025, but Asia is rapidly closing in on this share. The difference in insurance share between the two regions decreased to 3.3% in 2025, down from 7.8% in 2024, marking a significant reduction.
The Chinese market has been recognized as one of the key drivers of growth. This growth is primarily related to new products linked to the increase in domestic e-commerce and related insurance schemes, and also includes high-value exports such as electric vehicles, photovoltaic panels, and lithium batteries. Singapore also experienced a 13% growth, partly related to advanced transportation and semiconductors.
Loss ratios in Europe have been consistently decreasing, reaching around 40% in 2025. In Latin America, we have also seen gradual improvement since 2017, with the loss ratio reaching about 45%. Meanwhile, the loss ratio in Asia has fallen below 70% and continues to rise.
Bruce also mentioned concerns about tariffs and their impact on global trade, stating that their effects on the marine cargo insurance market have been less than anticipated. He clarified, "Last year, discussions were more focused on tariffs and their impacts on global trade. However, so far, their impact on the cargo market has not been as severe as predicted. Insurance values have been well maintained, and although volumes have decreased, they have not significantly dropped."
Ultimately, Bruce said, "Overall, the cargo market remains soft, and additional capacity is putting significant pressure on rates. It is competition that affects market conditions, not significant claims activities."
