Insurance Marketplace Realities 2026 Spring Update – Marine Cargo

Key takeaway

1. The marine cargo and stock throughput insurance market remains highly competitive

   Marine cargo and stock throughput rates remain incredibly soft, with well-performing programs typically enjoying rate reductions of 7.5% to 15% or more when marketed at renewal.  Challenging risks and accounts with adverse loss experience will draw some underwriting scrutiny; however rate reductions are generally still available except in extreme cases.

   Capacity remains incredibly robust, as most markets are competing for market share and top-line growth. In many cases, insurers are entertaining larger line sizes and increased total limit deployment compared to the past five years. Carriers are actively looking to underwrite more stock throughput risks than in recent years.

   Most of the coverage tightening observed throughout the recent hard-market cycle has reversed, with increased flexibility from insurers and broad acceptance of broker manuscript policy terms and conditions.  However, insurers continue to scrutinize exposures to geopolitical and war risk and tend to require geographic exclusions for those exposures.

2. Effects of the Iran war on the marine cargo insurance marketplace

   Recent escalations in the Middle East have materially increased war related risks across key energy and trade corridors, most notably the Strait of Hormuz and the Persian Gulf.  Cargo underwriters have responded through the application of a war risks notice of cancellation and subsequent “re-pricing” of war risks coverage.

   Unfortunately, heightened tensions in the region have also caused steamship lines to reconsider their plans to resume shipments through the Suez Canal, resulting in increased exposure to delay, deterioration and contingent business interruption risks as supply chains are rerouted and transit times lengthen.  

3. Looking forward

   Marine insurers will keep a keen eye on regional geo-political conflicts, as further escalation will have a profound effect on global trade and war risk factors affecting ocean shipments.  However, 2025 underwriting year profitability and mild catastrophe (CAT) peril activity (specifically, historically low hurricane losses), have perhaps thwarted a market over-correction thus far in 2026.

   Based upon recent capital investment in the marine insurance marketplace, soft pricing conditions will continue barring sustained unprofitability or a series of significant catastrophe (CAT) events impacting key supply chain / inventory hubs.