Marine insurance market to stay soft for up to two years

This is likely due to sustained competition, rising capacity and increased participation.

Market conditions across the global marine insurance sector are expected to stay soft through at least the next 18 to 24 months, according to WTW’s latest Global Marketplace Insights podcast. 

Specialists from the firm reported sustained competition, rising capacity and increased participation from managing general agents (MGAs) across hull, liability, cargo, specie, and protection and indemnity (P&I) segments.

James Reason, head of Hull for Marine GB at WTW, said the global marine hull market remains “overcapitalised,” with abundant capacity and competitive pricing. 

Clients continue to secure premium reductions except for heavily claims-affected business, whilst new MGAs and insurer platforms are adding further competition. 

Reason expects current market conditions to persist unless a major loss event disrupts the cycle.

In marine liability and ports and terminals, Patrick Wilson, head of Special Risks for Marine GB, said the market is showing early signs of softening after several years of steady rate increases. 

Additional capacity and favourable reinsurance renewals have driven competition, particularly outside the US, where social inflation and large legal verdicts continue to weigh on pricing. 

Ports and terminals have seen sharper rate declines amid low catastrophe losses and new market entrants.

For cargo, Alex MacInnes-Poole, Director and head of Broking for Cargo GB, noted that London’s cargo market is seeing average rate reductions of around 10% for well-performing accounts, with even larger cuts possible for target risks.

Alberto Cavallo, head of Placement for Specie GB, said the specie market has seen a surge in new MGAs and broader coverage terms.

The only segment under pressure is P&I. James Ryan, Director of P&I, said large claims have pushed the sector’s combined ratio to 111% from 96% the previous year, despite positive investment returns of 5.9%. 

He expects general rate increases of 5% to 7.5% at the 2026 renewal as clubs try to recover underwriting losses.