Artificial intelligence (AI) is poised to reshape the marine insurance sector, according to speakers at the International Union of Marine Insurance (IUMI) annual conference in Singapore.
The event’s Innovation & Technology Workshop highlighted both the opportunities and challenges that AI presents to the industry.
Rahul Khanna (pictured above), chair of IUMI’s Data & Digitalisation Forum, addressed delegates on the speed of technological advancement. He noted that the past year has brought as much progress in AI applications as the previous five years combined.
“AI in our sector is moving extremely rapidly. As an industry, we need to keep pace with this change or we run the risk of being left behind.” He warned that failing to adopt new technology promptly could leave the sector at a disadvantage, predicting that the working environment will look markedly different within five years.
The conference heard that the maritime supply chain is ready for innovation, with AI-driven solutions already beginning to address longstanding issues such as fragmented and inconsistent documentation. These technologies are not only improving the documents themselves but also streamlining the processes for sending, receiving, and storing them.
According to a recent report from the CSIRO and the Insurance Council of Australia (ICA), AI is being applied across five main areas in insurance: automating claims processing, detecting fraud, improving underwriting, forecasting natural disaster impacts, and ensuring operational compliance.
The report also notes that AI is being leveraged to improve decision-making and identify fraudulent claims, reflecting a broader trend toward data-driven strategies in the industry.
In marine insurance, AI is expected to bring brokers and underwriters into closer collaboration, creating efficiencies in areas such as pricing, claims handling, and risk assessment. The integration of AI is anticipated to influence the industry’s operational landscape in the coming years.
The sector is also navigating increased risks due to shifting trade routes and an aging global fleet. More than half of marine casualties in 2024 involved vessels over 20 years old, and casualty incidents have risen by 42% since 2018.
These trends are contributing to a rise in high-value claims and are prompting insurers to reassess risk models and pricing strategies. The ongoing changes in global shipping patterns, driven by geopolitical tensions and supply chain disruptions, are further complicating risk assessment for marine insurers.
Khanna also addressed the risks associated with AI adoption. He described AI as a learning tool that must be trained responsibly.
“It is essential that we train AI in the right way and in an ethical way that avoids bias — both conscious and unconscious.” He also remarked that an IT revolution is underway, with AI increasingly present in daily life and business, improving systems and freeing up time.
He urged marine insurers to remain open to AI adoption but emphasised the responsibility that comes with developing and implementing these technologies. “We must do this ethically and conscientiously,” he said, noting the importance of building robust and fair AI models.
During the IUMI conference, Neil Roberts, chair of IUMI’s Policy Forum, also reaffirmed that maritime safety, environmental protection, and crew welfare remain central to the organisation’s policy agenda.
“The core of our Policy Forum work continues to focus on the International Maritime Organization (IMO) and initiatives aimed at improving safety at sea,” Roberts stated, highlighting concerns such as rising fires on containerships and the carriage of electric vehicles.
He also addressed the complexities of sanctions, noting, “Sanctions are designed to inhibit trade whereas marine insurance is meant to facilitate it,” and underscored the challenge for insurers in balancing compliance with their role in supporting global commerce.
Roberts further drew attention to environmental risks, referencing incidents like the X-Press Pearl and the persistent threat posed by nurdles - plastic pellets that, once spilt, are almost impossible to remove from the ocean and often enter the food chain.
“With billions more in production and transported by sea, more controls are needed. IUMI believes that nurdles should be subject to the dangerous goods code,” he asserted. The workshop also emphasised the vital contribution of seafarers, focusing on issues such as fatigue, working conditions, and recruitment pressures, while urging marine insurers to proactively address modern slavery risks within maritime supply chains.
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