The International Union of Marine Insurance (IUMI) has reiterated its commitment to free trade, emphasizing that protectionist measures are detrimental to the marine insurance community, according to the company's release.
At a recent meeting of the IUMI executive, it was underscored that protectionism, in the form of trade tariffs, runs counter to IUMI's core values of securing free trade and fostering a robust global economy.
"Increased trade translates to a higher volume of vessels and cargoes requiring insurance," stated Lars Lange, IUMI Secretary General. "Protectionist measures tend to restrict trade, impacting the exposure and insured values for marine underwriters. They strain supply chains, disrupt trade routes, and contribute to higher accumulations of risk on vessels or in ports. This exacerbates the overall risk profile. As an international association, we believe that escalating trade wars are not an effective solution to address underlying issues."
Geopolitical tensions continue to pose significant challenges to free trade in several key regions, including the Black Sea, Red Sea, and Baltic Sea.
The situation in the Black Sea remains largely unchanged. While safe navigation remains a challenge, the passage of international vessels has not been severely disrupted. However, prices of Ukrainian exports have increased significantly.
Improved stability in the Red Sea region is anticipated to lead to a return of shipping. However, these supply chains are expected to remain fragile. The Houthi conflict predates the current escalation, making it difficult to predict the future trajectory of the situation. Nevertheless, insurance coverage remains available for vessel operators choosing to utilize this waterway.
IUMI supports freedom of navigation in the Baltic Sea, where recent cable breaks caused by prolonged anchor dragging are creating tensions. While adequate legislation to address this issue is lacking, IUMI supports all efforts to safeguard subsea infrastructure and ensure free passage.
The International Union of Marine Insurance (IUMI) is a non-profit association dedicated to protecting, safeguarding, and advancing the interests of insurers in marine and all types of transport insurance. IUMI currently represents 42 national and marine market insurance and reinsurance associations.