Published on 16 February 2026

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Marine and Cargo Insurance: Cargo Market Update 2026

Published on 16 February 2026

Over the past 12 months, the global cargo insurance market has entered a new, more competitive phase, creating opportunities for brokers to leverage increased capacity and drive value to their clients.

This shift illustrates the dynamics of the underwriting cycle unfolding over time, as the profitability of this class of business over the past few years has attracted a wave of new entrants to the global cargo market.

Although increased capacity has inevitably led to more competitive pricing across the market, terms and conditions have largely remained unchanged, with no significant amendments to deductibles, wordings and conditions, resulting in the class remaining profitable.

This pricing trend will likely continue for the foreseeable future, with markets seeking to expand their lines to maintain income levels, which will lead to increased signings and, consequently, heightened competition. The competition, which has been heating up over the course of this year, is expected to continue throughout 2026.

While the number of markets remains just below 2017 levels (i.e., the bottom of the last market cycle), the total USD capacity in the market now outstrips 2017 levels, with London market capacity in excess of USD1.5 billion.

This means it is now possible to place a vertical limit in the London market in excess of the 2022 peak of USD700 million and at far more favourable pricing than in previous years.

Indeed, Alesco estimates that it is now possible to achieve c. USD2 billion, in vertical limit, which shows the speed of change in this market in just three short years.

Against this backdrop of increased capacity and competition, there is a clear opportunity for brokers to employ more creative structuring of programmes, including layering strategies, the use of MGAs for niche risks and blended placements across the Lloyd's, company and MGA markets.

The increased level of competition also presents opportunities for brokers to win new business, re-engage with existing clients on broader risk-transfer conversations and offer clients more competitive terms without compromising coverage options.

Rise of the MGA

The current cycle will be dominated by the rise of MGAs, which are reshaping the distribution landscape.

MGAs often target a specific area of the market in terms of specialism, geography or class of business. There is a place in the market for these offerings, which can deliver faster turnaround times and typically have more appetite for underserved or emerging risks.

Some entrants to the MGA market are writing across all areas, seeking to be nimbler in their offerings than traditional syndicates or insurance companies. However, the real change we are going to see is when some MGAs realize their niche areas need diversification and begin offering to write wider interests.

These MGAs will have to continue to be aggressive in their pricing as they look to build volume above all else to achieve sufficient returns for shareholders and seed investors.

This can leave clients with the choice of chasing premium savings offered by the MGA market versus the longer-term, slightly more stable offering of the Lloyd's, company or regional markets.

However, this does not mean there is no place for MGAs within the cargo market. They can offer solutions that the remainder of the market is often unable to, while also providing brokers with opportunities to build new relationships and to access differentiated capacity.

Current market themes

The established themes of the past few years continue to focus the market's attention:

• War and geopolitical events: Ongoing tensions in the Middle East have led several markets to look at charging war APs for the Persian Gulf. However, as quickly as this possibility arose, it then dissipated, partly reflecting a microcosm of market dynamics and partly due to the fragile ceasefire. However, we are seeing premium ratings reducing in the Red Sea as exposures reduce and capacity increases.
• Vessel fires: Within a few weeks in May and June 2025, we saw losses from the Morning Midas (carrying 3,159 vehicles), Wan Hai 503, MSC Elsa 3, InterAsia Tenacity and Wan Hai 613. While the market accepts that such losses happen, it emphasizes the element of chance and ensures that line sizes remain disciplined. It also demonstrates that mis-declared cargoes and lithium-ion battery products remain high exposures.

"Even companies with the best risk management in the world cannot control whether their goods are in a container next to a mis-declared and dangerous cargo. "

• New technology: there is a persistent question within the market as to how technology will shape the risks that carriers underwrite — for example, through improved data, information and tracking, which can drive change in understanding exposure management, supply chain exposure and non-insured coverages.

Global supply chains and risk transfer

Supply chains remain varied, vast and complicated. These trade flows are constantly changing, and various political decisions such as tariffs, trade deals, Brexit, etc., continue to dominate this constantly changing world.

Marine cargo insurance continues to be a very flexible and dynamic cover for shifting supply chains. However, it doesn't cover all eventualities for potential balance sheet loss.

Now is the time to explore potential concerns within supply chains and explore opportunities to make risk transfer more effective, as there is now more tolerance for risk within the insurance world.

Insureds face very different exposures within their own supply chains, making these client conversations bespoke and requiring specialist knowledge of both businesses and the insurance world key.

Client considerations

With the marine cargo class experiencing increased capacity, competitive pricing and evolving risk dynamics, wholesale brokers have a unique opportunity to engage early with markets to secure optimal terms and structure, while reassessing placement strategies to maximize value for clients.

It also presents an opportunity for brokers to strengthen their carrier relationships, ensuring long-term stability and responsiveness.

Alesco brings extensive experience in navigating market cycles and accessing global capacity, delivering tailored placement solutions. This position enables us to initiate customized discussions on supply chain exposures and risk transfer solutions to support the specialist brokers within our distribution network. We consistently advocate for building the strongest possible relationships between brokers and carriers over the long term. Working with Alesco gives our clients access to a broad range of solutions and specialist placements that benefit their assureds and truly deliver value over the long haul.

Top tips for renewal

• Engage early with underwriters
• Check the layering structure of the programme from the outset of renewal
• Use market intelligence to negotiate better terms
• Continue to provide underwriters with comprehensive renewal information
• For large risks, set up face-to-face meetings with your underwriting panel, where possible
• While there is substantial new capacity available, sustainability remains the key. Brokers should continue to value relationships with insurers that remained on risk and partnered with them during the hard market