Global Ocean Hull Market Sees Rising Premiums Amid Aging Fleet and Emerging Risks

The global ocean hull insurance market has experienced a 3.5% premium increase in 2024, reaching $9.67 billion. The Asia-Pacific region accounted for 35% of these premiums, Europe 53%, and other regions 12%. The total global fleet value increased by 4% to $1.54 trillion, which has heightened the market exposure for insurers.

Claims continue to challenge the market, with machinery failures being the leading cause of losses and older vessels—particularly those over 20 years old—contributing to over half of the incidents in 2024. The fleet's average age is increasing due to low scrapping rates and limited new vessel construction. Additionally, approximately 25% of newbuild orders are for alternative-fuel vessels, introducing new risk considerations. Geopolitical tensions are also contributing to higher costs, logistical delays, and increased exposure to weather-related risks.