2025 global marine cargo insurance premium indicates that the  cargo  market softened in that year despite continued growth in the overall premium base, according to the International Union of Marine Insurance (IUMI).

According to IUMI’s latest research, global cargo premiums reached USD 24.2 billion in 2025, representing a 6.9% increase on the previous year and continuing a multi-year upward trend.

Speaking at today’s IUMI annual conference in Rotterdam, Mike Brews, Chair of the IUMI Cargo Committee cautioned that the headline growth figure should be viewed in context.

“A 6.9% uplift in our premium base in 2025 is welcome but we should recognise that the depreciation of the US dollar against European currencies has accounted for much of this growth rather than underlying market development. The majority of real growth has come from Asia, predominantly China.”

“We have also had to contend with additional capacity and increased competition, which has softened the market somewhat. More positively, the claims environment has remained favourable and this is reflected in the loss ratios. Overall, the cargo market softened in 2025  rather than correcting, and that pattern has continued into 2026.”

Europe continued to account for the largest share of the global cargo market in 2025, but Asia is rapidly closing the gap. The difference in premium share between the two regions narrowed to just 3.3% percentage points in 2025, compared with 7.8% percentage points in 2024.

As in previous years, the Chinese market was a key growth driver. This was mainly due to new products tied to the rise of domestic e-commerce and return-insurance schemes, as well as high-value exports such as EVs, photovoltaics, and lithium batteries. Singapore also recorded strong growth of 13%, driven in part by high-tech and semiconductor shipments moving through the city-state. Europe also recorded strong headline premium growth, much of this increase was attributable to currency movements -with a roughly 13% stronger EUR to the USD- rather than significant underlying market development.

Loss ratios in Europe continued to trend downwards, reaching approximately 40% in 2025. Latin America has also shown a gradual improvement since 2017, with loss ratios of around 45%.

Asia, by contrast, reported a loss ratio just below 70%, continuing an upward trend since 2020. In the US, the loss ratio fell significantly to around 40% in 2025, compared with approximately 75% the previous year, although this may partly reflect some under-reporting in the market.

It should be noted that loss ratios are reported mainly as “paid only” and generally exclude case reserves and “incurred but not reported (IBNR)” losses which have the potential to erode future profitability significantly.

Overall, the cargo sector experienced no major losses in 2025 that were significant enough to materially influence the wider market.

Brews noted that concerns over tariffs and their potential impact on global trade had been a major theme over the previous year. However, their effect on the marine cargo insurance market has so far been less pronounced than anticipated.

“Last year, the discussion was dominated by tariffs and their potential impact on global trade. We have not seen them influence the cargo market as strongly as some had predicted. Insured values have held up and, although volumes have slowed, they have not declined as sharply as many expected.”

Looking ahead, Brews said:

“In general, the underlying cargo market remains soft, with over-capacity putting pressure on rates, particularly across Europe. It is largely competition that is affecting market conditions rather than significant claims activity.”

“Our top-line premium base has grown, but that growth is largely attributable to trade volumes and currency movements. It does not necessarily herald a healthier market.”