I’m thrilled to sit down with Simon Glairy, a leading voice in marine insurance and Insurtech, whose expertise in risk management and AI-driven risk assessment has shaped innovative approaches in the industry. With global premiums reaching record highs and challenges like climate change, geopolitical tensions, and sustainability mandates reshaping the marine insurance landscape, Simon offers a unique perspective on how data and technology are steering the sector through turbulent waters. Today, we’ll explore how insurers are leveraging analytics to tackle volatility, the impact of emerging tech on risk prevention, and the strategies driving sustainability and competitive differentiation in a softening market.
How do you see the recent slowdown in marine insurance premium growth, down to just 1.5% in 2024 despite a record $39.92 billion, influencing competition among insurers, and what role is data playing in this dynamic?
I’ve noticed that the slowdown in growth has really tightened the screws on competition. Insurers are scrambling to differentiate themselves, and honestly, it’s not just about slashing prices anymore—it’s about who can wield data the sharpest. With growth dropping from 5.9% in 2023 to just 1.5% this year, the pressure is on to be smarter, not cheaper. At our firm, we’ve seen firsthand how data analytics can turn the tide; for instance, by integrating more granular data into our underwriting models, we’ve been able to reduce uncertainty around certain risks, which lets us price more competitively without eroding margins. It’s like navigating a storm with a high-tech compass instead of a gut feeling—you still feel the waves crashing, but you’ve got a clearer path forward. This shift to data-driven decisions isn’t just a trend; it’s becoming the backbone of how we stay ahead in a crowded field.
What’s your take on how real-time cargo tracking technology is evolving, and how do you envision it transforming the way marine insurers manage risks like aggregation?
Real-time cargo tracking is a game-changer, though I’ll admit, the costs are still a barrier for widespread adoption. The tech is maturing fast, and as prices drop, I see it becoming a staple for both insurers and insureds. It’s critical for managing aggregation risks—knowing exactly where high-value cargo is concentrated across ships and ports helps us avoid catastrophic losses when disaster strikes a key location. I remember a recent case where we used tracking data to reroute a client’s shipment away from a port at risk of congestion due to an incoming storm; it wasn’t cheap, but it saved us from a potential multi-million-dollar claim. Picture the relief of watching that digital map update in real-time, knowing you’ve dodged a bullet. Beyond just loss prevention, this tech ties into broader goals like sustainability, giving us visibility into environmental impacts as well. I believe in a few years, it’ll be unthinkable to underwrite without this level of insight.
Climate change poses a massive challenge for marine insurers, especially with global commerce so tied to vulnerable coastal areas. How are you addressing these escalating risks, and what specific strategies are proving effective?
Climate change is honestly one of the biggest headaches we face—coastal exposure means every storm or rising tide feels like a personal threat to our portfolio. We’re tackling it head-on by pouring resources into better data collection and modeling, part of a roughly $500 million push to enhance our analytics. This investment lets us map out vulnerabilities with more precision, like pinpointing which ports are most at risk from sea-level rise or extreme weather. One strategy that’s paying off is using predictive models to adjust coverage terms before disaster strikes; for example, we’ve adjusted premiums and deductibles for certain high-risk zones based on long-term climate forecasts, which has cut down on unexpected losses. I can still feel the tension in the room when we first rolled out these models—there’s always skepticism until the numbers prove you right. It’s not just about absorbing risk; it’s about reducing uncertainty so we can offer better terms to clients while protecting our bottom line.
With geopolitical disruptions like the Red Sea attacks pushing war-risk premiums up to 0.7% of a vessel’s value, how are insurers adapting their underwriting approaches to handle such volatility?
Geopolitical tensions, like the Houthi attacks in the Red Sea, have thrown a real wrench into traditional underwriting. We’ve seen war-risk premiums jump from 0.3% to 0.7% of a vessel’s insured value, and that kind of spike forces us to rethink how we assess and price risk. Our approach now involves a much tighter integration of real-time geopolitical intelligence into our models—think daily updates on conflict zones and rerouting patterns like the Cape of Good Hope detours that add thousands of miles to voyages. I recall a situation where we had to pause coverage for a client’s transit through a high-risk area after a vessel was sunk in July 2025; it was a tough call, but working with the client to find an alternative route saved us from a potentially devastating claim. You can feel the weight of those decisions—knowing lives and livelihoods are on the line. We’re also layering in more flexible policy terms to account for sudden disruptions, ensuring we’re not caught flat-footed when the next crisis hits.
Sustainability is becoming a defining factor in marine insurance, with initiatives like hybrid-electric propulsion and the IMO’s 2050 net-zero goals. How are you encouraging shipping firms to adopt these changes, and what’s a standout example of this in action?
Sustainability is no longer a buzzword—it’s a core part of how we align with clients, especially with the IMO’s 2050 net-zero targets looming. We’re actively incentivizing retrofits like hybrid-electric propulsion by offering more competitive pricing when shipping firms adopt best-in-class solutions. It’s about digesting the risk better; if a client reduces their emissions and long-term exposure, we can pass on savings. I’ll never forget working with a mid-sized shipping firm last year—they invested in retrofitting a fleet with alternative fuel systems, and after a deep dive into their upgrades, we adjusted their premiums downward significantly. Seeing their team light up when we presented the new rates felt like a win for everyone—the air seemed cleaner just talking about it. Educating ourselves on these technologies is key; it’s not just about writing policies but partnering with clients to build a greener future while keeping risks in check.
Given the softening market and overcapacity in cargo and hull sectors, how are you prioritizing risk prevention over price wars, and what tangible benefits have you seen from this focus?
In a softening market with overcapacity, especially in cargo and hull, competing on price alone is a race to the bottom. We’ve doubled down on risk prevention, emphasizing proactive measures over just undercutting competitors. This means working closely with clients to identify and mitigate risks before they turn into claims—think preemptive audits of vessel safety or tailored loss control programs. One clear benefit came from a client who adopted our recommended safety protocols; we saw a 30% drop in minor claims for their fleet over a year, which translated to lower premiums for them and fewer payouts for us. I can still picture the captain’s nod of approval during a ship inspection—it’s those small victories that build trust. By focusing on prevention, we’re not just saving money; we’re fostering long-term relationships where everyone comes out ahead, even in a tough market.
Looking toward the 2026 renewal season, how do you anticipate data and emerging technologies will reshape risk profiles and pricing in marine insurance, and what trends are already hinting at this future?
As we gear up for the 2026 renewal season, I’m convinced that data and emerging tech will fundamentally redefine how we handle risk profiles and pricing. We’re already seeing analytics move from reactive to predictive—using vast datasets to anticipate disruptions before they happen, which allows for more dynamic pricing models. One trend I’ve noticed is the growing reliance on AI to simulate scenarios like port congestion or geopolitical flare-ups, giving us a clearer picture of potential losses. Just last month, I was in a meeting where our team used such a simulation to adjust terms for a broker’s client portfolio, and the broker was floored by how granular our insights were—it’s like handing them a crystal ball. The pace of change is accelerating, and it reminds me of the industry’s early days at Lloyd’s coffee houses, where adaptation was survival. I think the winners in 2026 will be those who embrace this disruption as an opportunity to refine every aspect of underwriting.
What’s your forecast for the future of marine insurance, especially with the intersection of data, sustainability, and geopolitical challenges on the horizon?
I’m optimistic about the future of marine insurance, though it’s going to be a wild ride. Data will continue to be the North Star, guiding us through complexities like sustainability mandates and geopolitical shocks—think of it as the difference between sailing blind and having a full navigational suite. We’ll likely see sustainability become non-negotiable, with insurers and shipping firms locked in a tighter partnership to hit goals like the IMO’s 2050 net-zero target, possibly through even more innovative pricing incentives. On the geopolitical front, I expect war-risk volatility to persist, pushing us to lean harder on real-time intelligence and flexible underwriting—I wouldn’t be surprised if Red Sea-type disruptions become a norm we have to price into every policy. The challenge will be balancing these pressures without losing sight of client needs. Ultimately, I see an industry that’s more resilient, more connected, and frankly, more exciting, as long as we keep adapting at this breakneck pace.
