The Impact of Geopolitical Uncertainties on Marine Insurance

Marine insurance offers financial security against perils such as natural disasters, piracy, collisions, and theft, among others. By providing compensation for the loss or damage of goods, it helps facilitate smooth and efficient trade by minimizing financial risks and ensuring the continuity of supply chains.

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Rohit Boda
Group Managing Director
J. B. Boda Group

Marine insurance plays a vital role in global trade, providing protection against risks associated with the transportation of goods by sea. It serves as a safeguard for businesses involved in international shipping, ensuring that losses or damages incurred during transit are covered. Marine insurance offers financial security against perils such as natural disasters, piracy, collisions, and theft, among others. By providing compensation for the loss or damage of goods, it helps facilitate smooth and efficient trade by minimizing financial risks and ensuring the continuity of supply chains.

On the other side, geopolitical unpredictability poses significant challenges for sectors like maritime insurance, upsetting patterns of global trade and creating new dangers. These uncertainties stem from political conflicts, trade wars, sanctions, and other events. Political conflicts involve territorial disputes, ideological differences, and rivalries, while trade wars involve tariffs and protectionist measures. Economic sanctions imposed by one nation on another restrict trade and financial transactions, leading to market disruptions and elevated risks for businesses. These events can alter risk profiles and require marine insurers to reassess underwriting practices and adapt to changing circumstances.