Climate change is no longer a future threat it’s already reshaping the marine sector. Cyclones, like those that have battered Queensland and Western Australia in recent years are becoming more frequent, more intense and harder to predict. The impacts are wide ranging: hull damage to vessels, port disruptions and cargo losses in transit. Meanwhile prolonged rain events and flash flooding are damaging infrastructure, cutting off transport routes and increasing claims across the board.
In Australia this means longer catastrophe (CAT) seasons with global warming extending the window for extreme weather. For marine insurers this translates to heightened exposure across key policy areas:
Hull Insurance: Storm surges and cyclones are putting more pressure on vessel structures increasing the risk of groundings, sinking, and major damage. Cargo Insurance: Goods in transit are more vulnerable to delays and damage. Flooding can spoil perishables while unpredictable weather disrupts loading and unloading creating costly ripple effects across supply chains. Liability & P&I: Environmental liabilities are rising, with insurers facing stricter regulations and higher cleanup costs following extreme weather events.
The Soft Market: A Temporary Relief or a False Sense of Security?
In 2025, Australia’s insurance market is experiencing softening conditions. Increased competition driven by new entrants and abundant capacity has pushed premiums down across many lines, including marine. For businesses this may feel like a welcome break amid rising costs and economic pressures but this stability may be misleading.
If climate related claims continue to rise, the current pricing model could become unsustainable. A series of major events like supercell storms, floods, or cyclones hitting the same regions repeatedly or becoming widespread into new areas could force insurers to pull back capacity. The result? Sharp premium hikes, reduced coverage, and stricter exclusions.
We could see:
Hull policies with higher deductibles
Cargo insurance excluding certain weather perils
P&I cover becoming prohibitively expensive
Navigating the Collision: Building a More Resilient Future
The good news? There are proactive steps businesses can take to stay ahead of the curve and keep marine insurance viable:
Invest in early warning systems and climate resilient infrastructure to reduce exposure and lower claim frequency in areas of impact. Use predictive modelling and climate data to better understand and manage risk. Demonstrate strong risk management practices to insurers — this can lead to more favourable pricing and terms. Build strong partnerships with brokers and insurers to tailor coverage, better understand the risk, negotiate smarter, and stay agile in a changing market.
Let’s Talk
Connect with the team at Marinex today to explore how tailored solutions can help you manage risk and navigate the marine landscape in an increasingly unpredictable environment.
W: marinexunderwriting.com.au
E: enquiry@marinexuw.com.au
P: 1800 574 222
