The global marine insurance market continues to show resilience and is maintaining the availability of cargo, hull, liability and offshore energy cover despite increasing geopolitical tensions in the Middle East, says the International Union of Marine Insurance (IUMI).
Cargo insurers across global markets remain committed to supporting trade flows, including in high-risk areas such as the Persian Gulf and Red Sea.
Although the evolving situation in the Middle East has prompted adjustments, particularly in war risk pricing and policy structures, significant capacity is still available. Many insurers are continuing to provide cover through established mechanisms, including cancellation and reassessment provisions, allowing for flexibility as conditions change. This approach reflects a measured response to heightened risk, rather than any reduction in market support, says IUMI.
Operational challenges remain significant. Shipping disruptions, including sharply reduced vessel traffic and rerouting, have increased complexity for clients. However, insurers are responding with tailored solutions and case-by-case underwriting to ensure continued protection for cargo interests.
The global hull insurance market remains outwardly stable, according to IUMI, supported by resilient shipping demand and strong freight earnings.
Even as geopolitical tensions reshape trading patterns, particularly around key transit routes, insurers continue to provide cover, adapting terms and pricing where necessary to reflect evolving risks.
In the offshore energy sector, insurance capacity remains widely available, particularly for upstream risks, despite rising volatility linked to geopolitical developments.
Recent escalation in the Middle East, including impacts on energy infrastructure and supply flows, has introduced additional uncertainty into global markets. Nevertheless, insurers continue to provide cover supporting energy production and transportation activities worldwide.
While pricing and underwriting conditions are evolving to reflect increased exposures, there has been no systemic withdrawal of capacity.
