Standing in Piraeus – Athens’ ancient gateway and a modern hub of global maritime activity – invites a deeper look at the challenges and transformations reshaping the industry today.

Environmental and geopolitical challenges

Climate change impact

We’re seeing what once felt hypothetical become a tangible concern. The potential weakening of the Atlantic Meridional Overturning Circulation (AMOC) and Gulf Stream could reshape global climate patterns, ecosystems, and economic stability.

At the same time, the rapid Arctic ice melt is opening new northern trade routes. While these routes promise opportunity and new access to resources, they also heighten geopolitical friction – particularly among powers like the US, Canada, Russia, China, and several Nordic nations. China’s Belt and Road Initiative, with its growing Arctic ambitions, only intensifies this dynamic.

A shift in global power dynamics

Asia’s accelerating economic and demographic growth is steadily redistributing global capital and influence. For Western maritime and insurance players, this isn’t just a shift, but a wake-up call.

Staying competitive will require leaner operations, technological edge, and faster decision-making cycles.

Strategic maritime chokepoints

Maritime passages such as the Strait of Malacca, the Suez Canal, the Dardanelles, and Bab el-Mandeb are more than logistical routes – they are pressure points in the global system.

In an increasingly fragmented world, any disruption – be it from regional conflict, political instability, or military tension – can quickly escalate, affecting global trade, insurance risk, and energy supply chains.

Control over these chokepoints often translates into strategic influence, making them critical focal points for national security and economic power alike.

Disruption in trade and financial implications

Tariffs volatility

Volatile trade policies have made tariff forecasting a moving target. The impact on shipbuilding and maintenance (machinery and hull spare parts) is already being felt.

Many companies are re-evaluating their manufacturing orders, supply chains, and logistics, with a likely decline in sea-transported cargo – and by extension, in insured volumes.

Capital market uncertainty

Shifting political alignments are influencing reserve currency preferences, hinting at a gradual move away from USD dominance.

For the marine insurance sector, this raises the stakes. Financial agility and more adaptive pricing and underwriting models are becoming strategic necessities.

Complex sanctions landscape

The evolving landscape of international sanctions is increasing compliance workloads across the board – fleet operators, insurers, banks. Thorough vessel risk assessments, precise underwriting, and rigorous due diligence are now standard.

But complexity comes at a cost: longer lead times on claims and higher administrative burden. Reputational and financial risks loom large for those not keeping pace.

Read about: claims process automation in insurance.

Maritime threats on the rise

Resurfacing risks

Events like the Russia–Ukraine conflict and Houthi attacks in the Red Sea serve as powerful reminders of the maritime sector’s vulnerability to geopolitical crises.

On just one night – 24 February 2022 – over 300 vessels were impacted by the outbreak of war. In the Red Sea, between November 2023 and October 2024, there were 190 documented missile and drone attacks, significantly disrupting commercial routes.

The industry’s response – rerouting vessels, strengthening onboard security, and adapting operational protocols – has tangible consequences.

These measures increase insurance costs, drive up transport expenses, and ultimately feed into broader inflationary trends.

Human factor often overlooked

In the background lies a critical human element: seafarers. The Philippines, home to around 488,000 merchant mariners, roughly 30% of the global workforce, is a silent pillar of global trade. But what if Indo-Pacific tensions forced their return home for national service? It’s a scenario few talk about – but one worth including in future risk models.

Industry adaptation and regionalisation

Localised insurance solutions

One notable shift is the increasing relevance of regional players – local brokers and Managing General Agents (MGAs) – tailoring insurance solutions to meet local market needs. This allows for more agile, context-aware service offerings.

Geographical proximity to clients

There’s also a move towards proximity. Underwriters and claims managers are physically relocating closer to shipowners and fleet managers. The result? Stronger relationships and faster response times – benefits that become crucial in times of disruption.

Read about the latest tech in insurance:

• Insurance Business Intelligence: the catalyst for innovation
• NLP in the insurance industry: top 5 use cases and benefits
• AI in insurance: how can it be used and what are the benefits?

Greece: a global anchor in maritime trade

It’s impossible to ignore the weight of the Greek fleet – 4221 vessels representing 16.9% of global deadweight tonnage and 60% of Europe’s capacity.

This scale gives Greece a strategic voice in shaping how the industry evolves. Investment in technology, data-driven risk assessment, and sustainability are not optional for players of this magnitude – they’re imperatives.

Looking forward: a new era of resilience

The so-called “End of History” era is clearly behind us. We’re navigating a multipolar world, where agility, resilience, and liquidity matter more than ever. The maritime industry, responsible for transporting 80–90% of the world’s goods, is again at the heart of global transformation.

The good news? Technology is on our side.

Innovations in alternative fuels, New Space solutions, ArtificiaI Intelligence, and advanced data analytics offer faster feedback loops, better operational decisions, and strategic planning. Embracing them is no longer a matter of choice.

Piraeus may be steeped in history, but what strikes me most after this conference is how future-facing this industry is. We are living through “interesting times”, but with the right mix of strategy, collaboration, and innovation, we can navigate them with confidence.