Marine insurers forced to rethink coverage
"These events are no longer rare," says managing director
Marine insurers forced to rethink coverage
MARINE
By Josh Recamara
12 Aug 2025

Marine insurers are being forced to rethink cover, advisory services and risk management as geopolitical instability becomes a permanent feature of the shipping industry, according to The Swedish Club.

Managing director Thomas Nordberg (pictured above) said that sanctions, tariffs and military flashpoints now routinely affect the enforceability of contracts, the movement of vessels and the scope of insurance support.

“These events are no longer rare. They directly impact what insurers can legally cover and the advice we provide,” he said.

Impact on cover and liability

Sanctions can restrict an insurer’s ability to offer protection, while political disruptions and trade measures often force shipowners to alter routes or renegotiate charter party terms. Although such changes do not usually lead to a surge in claims, they heighten operational pressures, particularly in relation to cargo exposure, delayed deliveries and potential disputes over contractual obligations.

Advisory role expands

Nordberg stressed that marine insurers’ responsibilities now extend well beyond paying claims. “Our role is to help members navigate risk through close dialogue and timely advice. When routes change or obligations shift, we assess the implications and help protect their position,” he said.

The Ccub is calling for more industry-wide collaboration on geopolitical risk data, despite competitive sensitivities between P&I clubs. Nordberg argued that sharing intelligence could improve the sector’s collective ability to manage disruption.

Cyber risk has emerged as one of the most pressing threats, with geopolitical conflicts increasingly involving state-backed cyberattacks on shipping infrastructure.

Nordberg also noted the link between geopolitical events and investment markets, warning that marine insurers need to remain agile and ready to adjust their strategies as conditions change.

 

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