Marine insurers are being urged to broaden their understanding of modern slavery and forced labour risks within maritime and wider global supply chains, according to a new Information Paper released on 19 August 2025 by the International Union of Marine Insurance (IUMI).
The paper highlights rising reputational and legal risks for insurers that underwrite operations linked to exploitative labour practices.
Although insurers are not directly involved in abuses, the report notes that they may indirectly enable them if due diligence is insufficient.
“Modern slavery is impacting an estimated 28 million people,” said Lars Lange, Secretary General of IUMI. “Marine insurers must be aware of the potential consequences of insuring unethical clients and consider integrating ethical underwriting practices to support responsible business.”
The paper states that modern slavery, including forced labour, human trafficking, and exploitative recruitment, affects industries connected to marine insurance such as fishing, shipping, textiles, agriculture, and manufacturing. Distant-water fishing, garment production, and seafaring are identified as particularly high-risk sectors.
Among the recommendations for insurers are conducting thorough due diligence in underwriting, implementing ESG policies that address human rights, and cooperating with stakeholders to improve transparency in maritime supply chains.
The report points to lawsuits against major seafood and agriculture companies as examples of growing legal risks for businesses implicated in forced labour.
Legislative initiatives such as the EU Corporate Sustainability Due Diligence Directive and the UK Modern Slavery Act are cited as frameworks increasing accountability for companies and financiers.
The International Maritime Organization (IMO) reported a record number of seafarer abandonment cases in 2024, underscoring continuing vulnerabilities in the maritime sector. Lange acknowledged the difficulty insurers face in detecting abuses given their indirect involvement and the complexity of global supply chains but urged proactive engagement to align with global human rights standards.
International Union of Marine Insurance (IUMI) is an international non-governmental organization representing the global marine insurance industry. Established in 1874 and based in Hamburg, Germany, it provides a forum for marine insurers to discuss industry issues, develop positions, and engage with international regulatory and intergovernmental bodies. Its membership includes national and international marine insurance associations.