QBE Asia stresses stronger insurer ties for marine sector

China, Japan, and SG comprised 70% of the GVA  in the region’s marine sector.

The marine sector is crucial to both regional and global trade in Asia, and QBE Asia emphasises the importance of building relationships with insurers. 

“Understanding the market landscape amidst geo-political tensions and carbon emission regulations requires industries to prepare for the new normal. Engagement with insurers would pave a clearer pathway with fewer potholes,” Rama Chandran, head of Marine, QBE Asia, said in a report.

QBE’s "The Marine Sector in Asia Report" highlights UNCTAD data showing Hong Kong (China), Singapore, Japan, and China among the largest national fleets by deadweight tonnage in 2023. With major manufacturing bases and some of the world’s largest ports, the region plays a pivotal role in global trade. 

Intra-Asian and extra-regional containerised trade make up a significant portion of global statistics, with Asia also being the top crude oil importing region, with China and India as key buyers.

The region is adapting to supply chain changes and geopolitical impacts on shipping. Since November 2023, the diversion from the Suez route due to Yemen-based Houthi rebel targeting has significantly affected global trade, especially Asia-Europe trade. This has caused delays and increased costs globally, impacting trade to and from Asia.

ALSO READ: Russian marine insurers secure India's approval: Report

Asian countries are key locations for shipbuilding and recycling. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention), coming into force in June 2025, will increase obligations for safe and environmentally sound ship recycling. 

In 2023, the marine sector contributed $145b in gross value added to ten Asian economies, representing 51% of the global marine sector. China, Japan, and Singapore account for 70% of the region's gross value added. The marine industry contributes 2.5% to Singapore’s GDP and 1.2% to Vietnam’s and Hong Kong’s GDPs.

Several sectors heavily rely on water transport services, with the basic metals, chemicals, and machinery and equipment sectors utilising the most from the Asian marine sector, contributing $11.9b, $9.9b, and $9.0b, respectively. 

“By conducting risk assessment reviews to identify the likelihood and consequences of various hazards, insurers can help businesses navigate the changing world in which they operate in.” Sebastian Tjornelund, head of P&I Underwriting, QBE Asia, also said in the report.