Marsh has been selected by the Australian government to oversee the insurance and risk advisory components of the Royal Australian Navy’s Maritime Insurance Program (MIP), which supports a wide-ranging naval fleet expansion and infrastructure development initiative.
The MIP encompasses coverage for ship construction and sustainment, reflecting a core component of the government's broader national defence goals.
Under the agreement, Marsh will be responsible for coordinating risk placement and advising on insurance for the Navy's shipbuilding projects.
Assets potentially covered under the program include:
Insurance advisory services may also extend to onshore developments, including the naval infrastructure precinct at Osborne in South Australia. These assets form part of a long-term defence strategy aimed at increasing Australia's naval capabilities over the next two decades.
The appointment positions Marsh to engage with global marine insurance markets to secure coverage terms suitable for a project of this scale. The arrangement is expected to test both capacity and pricing flexibility across major underwriting hubs.
David Bidmead, executive chairman for Marsh McLennan Pacific, noted that the program reflects a high-value insurance opportunity that requires structured execution.
“The engagement presents a unique and significant proposition to global insurance markets. Through a combination of first-class risk management and highly streamlined administration, the Navy’s Maritime Insurance Program is ideally positioned to drive optimal outcomes for stakeholders,” he said.
The appointment also coincides with Marsh McLennan’s broader expansion within the Australian public sector.
Its consultancy unit, Oliver Wyman, has recently established a presence in Canberra to complement Marsh’s existing operations and provide advisory services across government portfolios.
Marsh’s appointment to the Maritime Insurance Program comes amid evolving dynamics in the global marine insurance sector – with implications for both pricing strategy and underwriting appetite.
Gallagher Specialty’s Q2 2025 Marine Hull & Machinery and War Risks Market Update noted that insurers, particularly in the London market, are facing increased competition for high-performing risks, which has softened rates in some segments.
It added that aggressive growth targets could strain rating structures, warning of a potential decline in pricing stability if underwriting expansion becomes too broad.
Despite fewer major claims in early 2025, a March incident involving the Solong cargo vessel and the Stena Immaculate tanker highlighted ongoing loss severity potential. The collision resulted in fires and casualties, with investigations launched by authorities in the UK, Portugal, and the US.
Geopolitical instability also continues to influence war risk cover. Gallagher’s report cited threats in the Red Sea and Black Sea due to military conflict, with vessels rerouting to avoid exposure. It also highlighted the ongoing use of unsanctioned tankers by Russian operators to circumvent restrictions, raising further concerns for insurers.
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