Cargo premiums rise 1.6% to $22.64b in 2024

The largest growth came from China.

Global cargo premiums reached $22.64b in 2024, up 1.6% from the previous year, continuing a multi-year upward trend, revealed at the International Union of Marine Insurance (IUMI) annual conference in Singapore.

IUMI Cargo Committee Chair Mike Brews said the global marine cargo insurance market remains stable but warned that tariffs and shifting trade flows could disrupt the sector in the months ahead.

Loss ratios have improved steadily across most regions since 2018, with no major catastrophic losses reported this year.

Brews said the largest growth came from China, likely due to the correction of previously under-reported returns. 

He noted that the industry still faces ongoing challenges, including cargo accumulations, mis-declared cargoes, the transition to net-zero, and war-related risks.

Looking ahead, Brews warned that tariffs could reshape insured cargo values and shipping patterns, with potential increases in insured values of up to 50% in North America. 

Such changes could force insurers to adapt to new trade routes, ports, and storage facilities, each with different risk profiles.

Brews added that market capacity is increasing, with some underwriters taking on larger risks at competitive premiums, which could soften rates. 

However, he expects the softening to be moderate as cargo underwriting remains profitable, attracting fresh investment.

He cautioned that tariffs and geopolitical tensions could still put pressure on market stability and profitability if they significantly change trade routes, costs, and volumes.