Data-driven seas: Behind the strategic pivot towards data-driven underwriting in marine insurance
Insurers turning to real-time visibility and aggregation modeling to navigate unprecedented volatilityMarineBy Gia SnapeDec 01, 2025ShareGlobal marine insurance premiums hit a record $39.92 billion in 2024, representing a 1.5% rate of growth compared to 5.9% recorded in 2023, and 8.3% the year prior, according to the International Union of Marine Insurance (IUMI).Amid slowing growth, competition is intensifying. Insurers are sharpening their focus on one advantage that is proving decisive: data.From real-time cargo tracking to sustainability-linked vessel retrofits, the industry is undergoing a structural shift toward analytics-driven risk management, according to Sam Hellebush (pictured), president, US Marine at Intact Insurance Specialty Solutions.“Everybody is moving toward more data-driven models,” Hellebush told Insurance Business America. “It’s not parametrics, but it aligns with that trend. The industry is trying to use data to get away from reactive remedies and be proactive to avoid the claim in the first place.”Real-time visibility reshapes marine riskIn marine insurance, few challenges loom as large as understanding cargo aggregation: the concentration of insured values across ships, ports, and key waterways. Real-time tracking technologies, once cost-prohibitive, are quickly maturing to respond to mounting losses at sea, according to Hellebush.“The technology exists to track individual shipments; it’s quite expensive,” Hellebush said. “As the cost decreases, you’ll see more take-up on the insurance or insured side. That’s important for many reasons, one of which is sustainability and the environment.”Climate change intensifies the need for such visibility. With the vast majority of global commerce moving through coastal, climate-exposed locations, insurers face heightened vulnerability to storms, sea-level rise, wildfire smoke disruptions, and extreme weather–induced port congestion.“Marine insurers specifically have an outsized interest in managing aggregations and addressing climate change,” he emphasized.Intact Insurance has reportedly invested roughly $500 million into elevating data quality. That investment, Hellebush said, is already reshaping underwriting confidence.“As we collect more and more of that data, the level of uncertainty surrounding a risk decreases,” he said. “When we can make a quality decision more frequently, we can pass cost savings on to the consumer.”Geopolitical tension accelerates the data raceApart from climate risk, supply chain disrurption stemming from geopolitical tensions have underscored the limitations of traditional, retrospective underwriting.The wave of attacks by Houthis on commercial shipping in the Red Sea since late 2023, for example, has radically altered how insurers view maritime risk. According to market sources, war-risk premiums for transits through the Red Sea have surged from around 0.3% of a vessel’s insured value to as high as 0.7%.In early July 2025, two vessels were struck by Houthi drones, missiles and explosive boats. One vessel was sunk; several crew members were killed or went missing, prompting fresh waves of underwriters to pause cover for certain transits. In response, many global carriers have rerouted around Africa’s Cape of Good Hope, but this detour adds thousands of miles to voyages, increases fuel consumption and voyage time, and further complicates logistics.Sustainability mandates are reshaping insurer-client relationshipsCompounding the security-driven volatility is the growing pressure of climate change and decarbonization. More shipping firms are exploring hybrid-electric propulsion, alternative fuels like hydrogen or ammonia, and other sustainability retrofits, especially as regulatory pressure mounts globally, driven by the International Maritime Organization (IMO)’s 2050 net-zero goals.Hellebush said insurers like Intact are already incentivizing such proactive adaptation: when retrofits are done properly, insurers can “digest the risk” and offer more competitive pricing. This aligns insurer and insured interests over fewer toxic emissions, reduced long-term risk, and a lower probability of costly claims.“Part of supporting retrofits requires us to educate ourselves,” Hellebush said. “When retrofits are done properly, and in a best-in-class manner, we can digest the risk and offer more competitive pricing.”A softening market meets an analytics revolutionIUMI has warned that, despite record premium volume, growth in the marine insurance sector is slowing amid overcapacity, especially in the cargo and hull & machinery markets. In this environment, differentiation increasingly comes from risk prevention rather than price.“We’re going to continue incentivizing proactive behavior,” Hellebush said. “Ultimately, if we’re paying fewer claims, we can pass those savings on to the customer.”Heading into the 2026 renewal season, Hellebush stressed that disruption means opportunity. For brokers, he said, the winners will be those who understand how data, sustainability, and emerging technology are reshaping both risk profiles and pricing models.“The industry has always been dynamic,” Hellebush reflected, going back to the Lloyd’s coffee house days.“The pace of change is accelerating, but it’s not something we should shy away from. Brokers should view this ongoing change as an opportunity.”Related StoriesGlobal marine insurance premiums hit record levels, but momentum ebbsConflict is reshaping global shipping routes and increasing marine insurance risks
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