Insurance Marketplace Realities 2025 Spring Update – Marine Cargo

Rate predictions: Marine Cargo

	Trend	Range
United States market - Transit & stock throughput
Good loss experience		–5.0% to -10%
Marginal to poor loss experience		+5% or higher
London market - Transit & stock throughput
Good Loss Experience		–7.5% to –10%
Marginal to Poor Loss Experience		+5% or higher

Key takeaway

The marine stock throughput program structure continues to be a viable option when compared to the more traditional approach of insuring inventory exposures within the property market. Recently, the property market has become more willing to provide sufficient credit to reduce inventory exposure, thereby increasing the success of implementing a stock throughput policy. Marine insurers continue to focus on catastrophe (CAT) season to determine if the season is prolonged due to global warming. For the past five years plus, the U.S. has not been impacted by a significant catastrophe (CAT) event. Despite this, insurers continue to review the adequacy of limits deployed surrounding catastrophe (CAT) per occurrence and annual aggregate limits, as well as corresponding deductibles.

Marine insurers continue to compete for market share by relaxing underwriting guidelines; however, profitability continues to be a high priority for the global marine market. With insurers focused on bottom-line profitability, the following underwriting diligence remains:

• Certain business segments and exposures are subject to more scrutiny than others, such as temperature-sensitive products, pharma, automobiles, theft attractive and high-hazard catastrophe (CAT) exposures.
  • Detailed exposure information and differentiating Insureds from their peers remains crucial to securing favorable terms and conditions.
  • Insurers continue to monitor their respective portfolios to manage their aggregation of risk in high catastrophe (CAT) risk regions.

To best position the client in the market, analytical tools should be utilized to optimize their program structures (with a focus on retention, catastrophe (CAT) limits, aggregates, etc.)

Tariffs

• Given recent discussions on tariffs between world leaders, clients should review their policy wording and the adequacy of limits.

Geopolitical global landscape

• Insurers continue to include an absolute exclusion for Russia, Ukraine and Belarus.
• Market continues to watch geopolitical activity in the region of the Red Sea.
• Insurers are watch closely that relations between China and Taiwan and the potential impact to the region and global supply chain.

To read more, download the full report below.

Disclaimer

WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).