Allianz Commercial, the corporate insurance arm of Allianz Group, stressed that marine insurance companies are operating in an increasingly complex environment as global shipping, which accounts for about 90% of international trade volume, faces increasingly severe geopolitical and operational pressures.
in its latest Safety and transportation reviewAllianz Business noted recent disruptions to major waterways, including the Strait of Hormuz, as part of a wider escalation of risks affecting global sea lanes.
The company noted that this evolving situation has led to increased insurance uncertainty, and insurers have responded by increasing risk pricing, closer scrutiny of transportation risks, and a greater emphasis on the resiliency of underwriting strategies.
Allianz Commercial describes the direction of development as a shift in global shipping towards a more security-sensitive operating environment, where asset protection and continuity of trade flows become as important as cost efficiency.
Allianz Commercial said the disruption caused by the conflict in the Middle East had a direct impact on marine insurance risks, particularly hull and cargo insurance. The company reported that approximately 1,150 cargo ships of 100 gross tons or more, with a total ship and cargo value of approximately $125 billion and a capacity of approximately 29 million gross tons, are currently stranded in the Persian Gulf, awaiting the resumption of normal operations following recent diplomatic developments.
Allianz Commercial highlights that up to 20,000 seafarers are affected by lengthy delays and heightened safety risks, highlighting the need for insurers to consider the human and operational dimensions alongside financial risks. Allianz Commercial noted that while marine insurance remained available during the period, premiums had increased, reflecting increased perceived risk.
It also shows that for shipowners and insurers, the main focus is no longer on the availability of insurance, but more on the safety of vessels and crew traveling through potentially unstable waters.
The company added that even if diplomatic arrangements support the reopening of major routes, continued international coordination is likely to be required to restore confidence and support a return to pre-disruption traffic levels, which could reach around 140 vessels per day.
Allianz Business reports that in addition to geopolitical volatility, the broader insurance outlook is also affected by long-term improvements in maritime safety performance. Over the past decade, the company has recorded a total loss of more than 900 ships of over 100 gross tonnage worldwide.
Between 2016 and 2020, there were a total of 555 losses, an average of 111 per year, while between 2021 and 2025, there were 350 losses, an average of 70 per year. Allianz Commercial attributed the reduction in part to improved safety standards and operational risk management across the shipping industry, although it noted that significant losses were still occurring.
The insurer also reported that the number of overall transportation accidents in 2025 dropped approximately 16% from the previous year, from 3,353 to 2,818. Despite this improvement, Allianz Commercial stressed that claims risk remains significant, particularly in certain regions.
The Eastern Mediterranean and Black Sea had the highest number of incidents, with 622, followed by the British Isles, with 619, which has been the region with the highest concentration of incidents over the past decade. Mechanical failure continues to be the leading cause of loss incidents, accounting for more than half of all incidents (1,505 incidents), and collisions and fires on large ships also continue to generate significant insurance claims.
Allianz Commercial specifically noted that fires involving container ships and car carriers remain an ongoing problem, with more than 200 fire incidents recorded in 2025 alone, resulting in multiple total losses.
The company also drew attention to the increasing size of modern ships, which is affecting the frequency and complexity of general average claims. Allianz Commercial explains that these claims arise when shipowners and cargo interests share the extraordinary costs of maintaining a distressed voyage, and are becoming increasingly complex and expensive due to higher cargo values and larger freight volumes.
In some cases, compensation can be up to 50% of the value of the goods, meaning a single incident involving high-value goods such as electric vehicles could result in claims exceeding $100 million.
Thomas Lillelund, CEO of Allianz Commercial, commented: “Our analysis shows that the shipping industry has made significant improvements in maritime safety in recent years. However, the shipping industry has also undergone a fundamental shift from decades of relative stability, characterized by stable trade flows and largely predictable operating conditions, to becoming increasingly complex and unstable.”
“The conflict in the Middle East and the closure of the Strait of Hormuz are just the latest in a series of serious disruptions for shipowners and cargo operators. In an increasingly unpredictable world, where resilience, geopolitics and efficiency must be balanced, the costs of uncertainty are reshaping the shipping industry.”
Captain Rahul Khanna, global head of commercial maritime risk consulting at Allianz, said: “We are seeing growing uncertainty about shipping routes. Any type of event – a conflict, an epidemic or a stranded ship blocking a key port or canal – can cause significant disruption to shipping and supply chains.
“Events in the Middle East have had a greater impact than many expected. The closure of the Strait of Hormuz sets a dangerous precedent and raises questions about the long-term future of this and other critical chokepoints. It is increasingly clear that we must pay a price for uncertainty, move from ‘just in time’ supply chains to ‘just in case’ supply chains, and prioritize resilience over cost efficiency.”
Justus Heinrich, global product head of Allianz Commercial Marine Hull, added: “The insurance market has reacted quickly to the crisis, but the real challenge for companies is to understand how risks relate to each other. This is why resilience and risk management become as important as insurance coverage.
“The shipping industry is facing turbulent times, not only from geopolitical instability but also from traditional hull and machinery risks (where we see claims costs continuing to rise), as well as decarbonization and fleet renewal challenges. As insurers, our role is to support our clients as risk takers and resilience partners, mitigating risks before they become damaging loss events.”
