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How insurance innovation is unlocking opportunities in marine, cargo, and logistics

Global trade uncertainty and supply chain risk — driven by geopolitical instability, climate change, and shifting trade policies — present challenges to cargo owners.

Global trade uncertainty and supply chain risk — driven by geopolitical instability, climate change, and shifting trade policies — present challenges to cargo owners and supply chain operators. According to the Global Risks Report 2025, these challenges are top of mind among decision-makers given their potential impact on trade, supply chains, product distribution, critical national infrastructure, food and energy security, and ultimately, companies' sales, reputation, profitability, and even survival. As a critical link in global supply chains, the maritime sector’s response to these challenges is of broad importance.

More recently, tariffs have introduced further complexity to the trade landscape, with significant implications for cargo owners and supply chain operators.

These challenges are forcing the marine insurance industry to refocus on innovation and improve solutions, enabling it to stay ahead of trends, manage risks effectively, and seek new opportunities for clients.

Time is everything: Addressing delays

In today’s fast-paced and interconnected economy, timely delivery of goods is essential for operational efficiency. Delayed cargo shipments — whether due to severe weather events, operational disruptions, or increased tariff or sanctions compliance — can have far-reaching implications on operations, reputations, and finances.

While traditional cargo insurance policies typically cover physical loss or damage to goods, they often exclude expenses directly related to delays.

To address this, cargo owners and supply chain operators are increasingly seeking out innovative insurance products. One option is parametric insurance, which provides predetermined payouts when specific events occur, such as adverse weather conditions or vessel performance issues.

For example, the Mississippi River is only navigable for vessels when water levels exceed nine feet. Extended droughts and flooding can shut down the channel for days or more, leading to delays, loss of perishable goods, and disruption. A parametric policy potentially could be structured around the river’s depth, triggering a payout if levels drop below nine feet.

Parametric insurance is gaining traction due to advances in technology and data analytics that enable more precise and rapid risk underwriting for shipowners, operators, and port terminals. Marsh works with technology providers that can evaluate voyage exposure to delay, which can then support the development of parametric solutions for our clients.

Charting new courses: Adapting to shifting trade routes

Economic trade shifts and climate change are forcing many operators to explore alternative shipping routes. This requires adaptations in ports and supply chain infrastructure to support these routes. For instance, while newer routes, such as the Northern Sea Route, offer potential, they can be hindered by inadequate infrastructure and unsuitable ports. Furthermore, increased accumulation in warehouses, ports, and distribution centers can create significant bottlenecks that cause disruption. The growing size of vessels and water levels can also heighten the risk of port blockages.

Port landlords typically purchase property insurance, while operators tend to purchase both property and liability coverage. Recent innovations include the introduction of port blockage insurance, which is designed to cover losses from blockages, and port trade disruption insurance, which is designed to address a range of perils that might interrupt cargo flow, such as the impact of geopolitical events or weather-related incidents. These policies are designed specifically for port owners and operators, not cargo owners.

Enhancing product suites: Logistics in motion

Logistics companies generally purchase property and liability insurance to protect against claims made by customers or third parties regarding lost or damaged cargo. As these companies expand their service offerings to generate additional revenue streams, they may want to consider shippers’ interest policies to extend cargo coverage to their customers. These products can offer cost-effective cargo coverage for small consignors due to the bulk purchasing of the logistics provider.

Larger cargo-owning companies with extensive transit and storage volumes may prefer to negotiate stock throughput coverage to protect their operations throughout the supply chain.

Data technologies: Strengthening the supply chain

Maritime supply chains face other threats — labor strikes, cyberattacks, and workforce issues — that can disrupt operations and create ripple effects throughout the global economy. For example, proposed US port fees on China-built ships could limit the availability of ships needed to move agriculture, energy, mining, construction, and manufactured goods around the world.

Considering the potential widespread impacts of supply chain disruption, it is important for marine, cargo, and logistics operators to understand the challenges they face and identify vulnerabilities in their operations. This understanding can inform a comprehensive risk management and insurance strategy to enhance resilience.

Proprietary systems like Sentrisk and BrokerSafe can analyze supply chain risks and assess carrier safety records. Sentrisk identifies potential choke points and reputational risks, while BrokerSafe helps cargo owners and freight brokers evaluate carrier safety in trucking fleets. Knowledge and data are powerful enablers that can facilitate better assessment of exposures and risks. These tools are part of Marsh McLennan’s broader effort to provide comprehensive risk management solutions to clients.

Management, mitigation, and insurance: Aiming to future-proof your value chain

As businesses adapt to shifting trade policies, staying informed about evolving risks and reviewing insurance strategies is becoming increasingly important. Marsh solutions can empower organizations with the knowledge and insights needed to enhance their board-level and real-time decisions. For instance, Sentrisk, draws on data to help companies proactively manage current and emerging supply chain risks; our consulting teams can support companies’ resiliency building and risk mitigation efforts; and our brokerage and claims teams transfer risks via insurance and assist in claims recovery in the event of a loss.

Insurance and risk management strategies underpin global supply chains, and it is essential that you understand the unique risks you face and the offerings available. Marsh’s Marine, Cargo, and Logistics team can draw on our expertise and experience to help cargo owners, ports and terminals, shipping and logistics companies adapt and thrive in this evolving landscape.