NAVIGATING ACCOUNTABILITY: THE EXPANDING SCOPE OF MARINE LIABILITY IN MODERN MARITIME OPERATIONS

The maritime industry is undergoing a profound transformation, driven by global trade expansion, technological innovation, and evolving regulatory landscapes.

- By Nagarajan Girishankar, Chair - Reinsurance, Howden - India

Government of India has also laid much emphasis on developers in maritime sector such as Ship building, Ship repair, Port & terminal etc. The recently concluded India Maritime Week bears testimony to above. Marine liability insurance, once narrowly focused on vesselrelated risks, is now a cornerstone of comprehensive risk management strategies across a diverse array of maritime stakeholders. As operations become more complex, the scope of marine liability continues to expand, demanding nuanced coverage and proactive risk mitigation.

MARKET GROWTH AND SCOPE EXPANSION

Global marine insurance premiums reached USD 39.92 billion in 2024, with marine liability accounting for approximately 7.55 per cent of the total premium base. This reflects a growing demand for coverage beyond traditional hull and cargo risks, as stakeholders seek protection against a broader spectrum of operational exposures.

The marine market is forecasted to grow from USD 39.92 billion in 2024 to USD 45.4 billion by 2029, at a CAGR of 7.3 per cent, driven by:

• Expansion of global trade routes

• Regulatory tightening across jurisdictions

• Emergence of new risks such as cyber threats and autonomous vessel operations

This growth trajectory underscores the strategic importance of liability coverage in ensuring operational continuity and stakeholder confidence.

DIVERSIFICATION OF INSURED STAKEHOLDERS

Marine liability insurance is no longer confined to shipowners and operators. The landscape now includes a diverse array of stakeholders, each with unique risk profiles and coverage needs:

• Port Authorities: Require coverage for legal liability arising from berth damage, cargo mishandling, pollution, and third-party injury.

• Stevedores and Terminal Operators: Need protection against cargo damage, bodily injury, and equipment failure.