| Coverage | Trend | Range |
|---|---|---|
| Hull and machinery |  |
-5% to -7.5% |
| Protection & indemnity (international group) |  |
+2.5% to +7.5% |
| Protection & indemnity (U.S. commercial) |  |
0% to -2.5% |
| Marine liabilities | |
-2.5% to -5% |
| Bumbershoot / excess liabilities |  |
0% to +/- 2.5% |
Key takeaways
- Marine hull and liability markets remain competitive due to strong capacity and continued market competition
- Geopolitical conflicts continue to affect war risk coverage, pricing and underwriting requirements
- A major vessel-to-infrastructure multi-billion loss, is increasing scrutiny of large marine casualty exposures and reinsurance pricing.
- Social inflation and large liability awards remain important considerations for insurers and buyers
Marine marketplace continues to favor buyers
Marine insurance markets continue to provide favorable conditions for buyers. Abundant global capacity, intense competition among insurers and continued premium growth objectives are helping sustain soft market conditions across most classes of marine business. New market entrants, increased managing general agent (MGA) participation and ongoing talent movement across U.S., London and international markets are contributing to a highly competitive environment.
Organizations with strong risk management practices and favorable loss experience are generally securing flat renewals or rate reductions. Insurers also continue to offer continuity credits, flexible program structures and broader coverage enhancements to retain market share.
Geopolitical developments remain a key focus
Despite favorable market conditions, geopolitical instability remains the primary concern for marine insurers and buyers. Ongoing tensions involving the Persian Gulf, Strait of Hormuz, Red Sea and Black Sea continue to create uncertainty for vessel operators and global shipping operations.
These developments have contributed to elevated war risk costs and increased concern regarding crew safety, pollution liabilities and major casualty events. As a result, insurers are applying greater scrutiny to voyage exposures, vessel management practices, ownership structures and risk controls when evaluating coverage.
Hull and liability markets remain competitive
Marine hull, commercial protection and indemnity (P&I), marine liability, ports and terminals and builders-risk markets generally continue to soften. Competition among insurers, growth objectives and additional sources of capital are helping maintain downward pressure on pricing.
For many buyers, these conditions are creating opportunities to achieve modest rate reductions and broaden coverage. While U.S. business remains somewhat more resilient because of litigation and social inflation concerns, overall market momentum continues to support competitive renewal outcomes.
Major marine casualty events loss continues to influence underwriting
Ongoing loss development from a major casualty event continues to impact P&I Club underwriting outlooks and reinsurance considerations, with estimated ultimate costs rising from approximately USD 1.5 billion to nearly 3.0 billion.
The event continues to affect discussions surrounding international group reinsurance costs, reserve adequacy and future allocation methodologies. While many P&I clubs have benefited from improved underwriting results and strong investment performance, insurers remain focused on managing major casualty exposures and maintaining financial resilience.
Outlook for 2027
Marine buyers are expected to continue benefiting from favorable market conditions supported by strong competition and abundant capacity. Organizations with effective risk management practices and favorable claims experience should continue to find attractive opportunities during renewal negotiations.
At the same time, insurers will continue monitoring geopolitical developments, major casualty losses and reinsurance market conditions. These factors may influence the pace of future softening and support continued underwriting discipline for more complex risks.
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).
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