In a globally interconnected economy, cargo movement is the lifeblood of trade, and with movement comes exposure to risk.
Across every sector, from agriculture to automotive, the safe, timely transit of goods is crucial. Yet, in 2025, marine cargo risk has become more volatile and complex than ever. Traditional insurance solutions, long the default for mitigating cargo loss or damage, are no longer sufficient in managing the full spectrum of today’s disruptions.
Despite being in a relatively buyer-friendly insurance market – where competition among insurers is high – carriers are treading carefully. They are shrinking capacity, offering smaller underwriting lines and avoiding segments perceived as higher risk. This creates a critical disconnect: businesses require stability, but insurers are limiting their appetite for risk.
Natalie Cooper, senior marine and aviation broker at Aon South Africa says: “This tension between buyer demand and insurer restraint is driving demand for innovative risk capital strategies. With geopolitical instability, shifting trade lanes and climate-related disruptions amplifying volatility, companies are looking beyond traditional indemnity to alternative capital.”
Alternative risk capital solutions allow businesses to tap into third-party balance sheets – essentially bringing in new pools of funding and insurance capacity. These solutions are reshaping how companies manage marine cargo risk, focusing less on reducing premium costs and more on optimising the allocation of risk and capital.
“Instead of treating marine cargo insurance purely as an operational cost, organisations are using risk capital to unlock long-term strategic value,” Cooper adds. This shift supports greater financial resilience, enhanced supply chain agility, and better alignment with broader business objectives.
As marine risks grow in complexity, this capital-based approach to risk management is gaining traction as a critical tool in the modern risk manager’s arsenal.
Source: Supplied by Aon South Africa, edited by Eamonn Ryan