“The most recent Gallagher report indicates that the global cargo insurance market is undergoing a period of transition. It notes that while underwriters describe the market as being in an adjustment phase, brokers already define it as a scenario of rapid softening. After several years of profitability, the entry of new participants has increased the available capacity—close to USD 1.5 billion—resulting in greater competition and downward pressure on rates. However, contractual terms and deductibles have remained stable, which, for now, prevents an immediate return to the soft market levels seen in 2017.

Among the most notable trends is the rise of MGAs (Managing General Agents), which target specific business niches and offer greater flexibility compared to traditional markets. Their strategy, based on aggressive pricing and diversification, presents clients with the dilemma of choosing between immediate savings or the stability of established markets.

Risk in global supply chains remains at the center of the debate. Geopolitical, trade, and technological factors are constantly redefining the flow of goods, requiring more tailored risk transfer solutions with a higher degree of specialization.

Regarding current issues, the report highlights:

• Geopolitical tensions and war, with temporary adjustments in premiums, as seen in the Persian Gulf and the Red Sea.
• Ship fires, driven by misdeclared cargo and lithium batteries, requiring discipline in underwriting.
• New technologies, which will redefine risk management, exposure analysis, and coverage of non-traditional areas such as delays or logistical disruptions.

In summary, the cargo market is heading toward a cycle of increased competition and capacity, characterized by the emergence of MGAs, the complexity of supply chains, and the adaptation to emerging risks that demand both innovation and technical discipline.

Read the full report here https://specialty.ajg.com/marine-cargo/cargo-market-update-2025