Delegates at the International Union of Marine Insurance (IUMI) annual conference in Rotterdam were warned that the continued decline in ship demolition is contributing to a steadily ageing merchant fleet, raising concerns about future marine insurance claims.
The average age of vessels now making their final voyages has reached 22.4 years. Historical comparisons are difficult because of external factors, particularly the disruption caused by the pandemic. Nevertheless, the trend is placing additional pressure on marine underwriters, according to Ilias P. Tsakiris, Chairman of the IUMI Ocean Hull Committee, who addressed delegates during the four-day conference.
At the same time, the global merchant fleet continues to expand. Tsakiris said fleet capacity is expected to have grown by around 3% in 2026, adding further complexity for insurers already managing an ageing vessel population.
Older ships typically require more frequent maintenance and repairs, increasing the likelihood of claims. The problem is compounded by shortages of spare parts for ageing vessels, which can drive repair bills and claims costs higher.
Insurers are also facing greater exposure as port state control activity increases in several regions. More frequent inspections could translate into a higher risk of vessel detention, alongside additional repair requirements and associated costs.
Both hull and cargo insurers are meanwhile having to assess a growing list of emerging risks. These include escalating conflict-related threats, changes to shipping routes because of navigation hazards, and ship-to-ship transfers in areas where unpredictable weather conditions can increase operational exposure.
Other concerns highlighted during the conference include expanding sanctions targeting the shadow fleet, increasingly sophisticated maritime deception practices, interference with navigation systems and the rising frequency of fires aboard car carriers and container ships.
IUMI analysts also identified a newer concern this year: “AI fomo.” The term refers to the fear among underwriters that their professional skills, personal experience, risk assessment methods and established business practices could eventually become obsolete as artificial intelligence tools are increasingly developed for the specialist marine insurance sector.
