Welcome to Liga Asuransi, a trusted platform for risk management, insurance information, and updates on accidents and industry trends. We are here to help shipowners, shipping companies, and exporters and importers better prepare for the increasingly complex risks of the maritime world.
Have you ever imagined the immense value of a ship and its cargo as it sails the oceans? From tankers carrying millions of liters of oil, cargo ships carrying thousands of containers, to container ships that are the lifeblood of Indonesia’s exports and imports. Every journey isn’t just about arriving at the destination port; it also involves facing the risks of extreme weather, collisions, fires, and even geopolitical risks on international shipping lanes.
In 2025, Indonesia is at a crucial moment. Export growth, which has surged by more than 14%, is increasing shipping activity. The number of ships and cargo crossing the seas is increasing, as are the potential risks. This is what makes Indonesian Ship Insurance increasingly vital to protect the shipping industry, ship owners, and import-export companies.
However, market challenges are also significant. Insurance premiums are trending upward due to tight global market conditions, increasingly complex new regulations, and modern risks such as cyberattacks beginning to plague the shipping world. This is where shipowners, shipping companies, and exporters and importers need to be more discerning in selecting coverage.
This article will discuss the latest trends in Indonesian Marine Insurance: from digitalization, export growth, to the Challenges of the Indonesian Marine Insurance Market in 2025. We have made the language simple, so that those of you who are involved in the world of ships, cargo, and exports and imports can immediately grasp the important points.
What is Marine Insurance and Why is it Important?
For some, insurance often sounds complicated. But for those of you who operate ships or ship goods by sea, insurance is no longer an option but a necessity.
Marine insurance is a form of financial protection against risks that could affect a ship or its cargo. There are two main types you should be aware of:
- Marine Hull Insurance
Protects the ship’s hull, engines, and main equipment. For example, if a tanker experiences engine failure at sea, repair costs could reach billions of rupiah. This policy covers that risk. - Marine Cargo Insurance
Focus on protecting goods or cargo. Ideal for import-export companies. Imagine your container is hit by a storm and some of its contents are damaged without insurance; the loss will be fully covered by the owner of the goods. - Asuransi Protection & Indemnity (P&I)
Cover legal obligations, for example claims from third parties resulting from ship collisions.
Why is this important? Because the ocean is a highly uncertain environment. Tankers, cargo ships, and even container ships are constantly at risk. The cost of losses can be substantial, often exceeding a company’s financial capabilities. With insurance, this risk can be transferred, allowing business to continue operating smoothly even in the event of an incident.
Why is it important for the shipping industry?
The sea is a highly uncertain environment. Tankers are at risk of leaks, cargo ships are vulnerable to extreme weather, and container ships are vulnerable to cargo damage. The cost of a single incident can be substantial, even exceeding a company’s financial capacity.
With Indonesian Ship Insurance, ship owners, shipping companies, and exporters and importers can conduct their business with greater peace of mind. Risks remain, but the burden can be shifted to the insurance company. This is why insurance in the shipping industry is no longer an “add-on,” but a fundamental necessity that determines business sustainability.
Digitalization Trends in Marine Insurance
In the past, purchasing boat insurance was synonymous with mountains of paperwork, lengthy claims processes, and complicated communication. Now, the situation has changed drastically.
The year 2025 will be marked by a growing trend of digitalization in the insurance industry, ranging from e-policies (digital policies), online claims, and the use of IoT (Internet of Things) to monitor ship conditions in real time.
For ship owners or shipping companies, the benefits are clear:
- Transparency: You can immediately view policy details anytime, anywhere.
- Speed: Claims do not need to wait for months, just upload digital documents.
- Accuracy: With digital sensors and data, risk assessments become more accurate, resulting in more competitive premiums.
As a broker, L&G’s role is to guide shipping companies and exporters in selecting the most suitable digital insurance product. Not all products on the market are created equal; some are strong in digital services, while others excel in premium pricing. With the support of a broker, you don’t have to worry about comparing them one by one.
What Does This Mean for Shipowners and Import-Export?
Digitalization isn’t just a technology trend; it’s a business necessity. Tanker owners regularly sailing between islands, cargo companies managing hundreds of containers, and exporters shipping goods to Europe or the Americas will all benefit greatly from digital services.
With digital-based Marine Hull Insurance, shipowners can quickly obtain protection without waiting for days of manual processing. For exporters and importers, digitalization simplifies the real-time management of Ship Insurance for Export and Import, ensuring smooth and secure business operations.
Digitalization is bringing a breath of fresh air to the Indonesian marine insurance industry. Faster, more transparent, and more flexible processes allow shipowners, shipping companies, and export-import companies to focus on their core business without the hassle of claims and paperwork.
However, to maximize the benefits of digitalization, industry players must be ready to adapt. This includes improving digital literacy, ensuring data security, and selecting insurance brokers experienced in leveraging technology.
Thus, this digitalization trend is not just a “new trend,” but rather a strong foundation for the sustainability of Indonesia’s shipping business in 2025 and beyond.
Export Growth and Its Impact on Marine Insurance
Indonesia is a maritime nation. The sea is a major highway for exports and imports. By 2025, national export growth is projected to increase by around 14%. This means more goods will be moving across international waters.
For export-import companies, this is both good news and a challenge. On the one hand, business opportunities are increasing. But on the other hand, the risk of cargo being damaged, lost, or arriving late also increases.
This is where export-import ship insurance plays a crucial role. With the right policy, export-import companies needn’t worry about significant losses in the event of an incident.
Real example:A textile export company was shipping containers to Europe. En route, the ship encountered a severe storm, damaging some of the containers. The losses reached hundreds of thousands of dollars. Fortunately, thanks to Marine Insurance for Export and Import, the losses were covered. The company was able to maintain its cash flow and business reputation.
Furthermore, many international buyers now require exporters to have cargo insurance before entering into a contract. Therefore, insurance is not only protection but also key to gaining the trust of the global market.
Challenges of the Indonesian Marine Insurance Market in 2025
Despite the huge opportunities, the Indonesian marine insurance market is not without challenges. The year 2025 is known as the era of…“hardening market”premiums tend to rise, reinsurance is stricter, and policy requirements are increasingly complex.
Some real challenges faced:
- Premium Increase
Due to rising global claims, international reinsurance companies have raised prices. Consequently, ship insurance premiums in Indonesia have also soared. - Geopolitical Risks
International shipping lanes like the South China Sea are increasingly prone to conflict. The risks are high for tankers and cargo ships passing through. - Cyber Threats
Modern ships are becoming increasingly digital. Unfortunately, this opens up the possibility of cyberattacks against ship navigation systems. - Environmental Regulations
The decarbonization trend is forcing ships to switch to environmentally friendly fuels. However, the technical risks of these new engines remain high, impacting claims.
For shipowners, shipping companies, and exporters, this situation means a more discerning policy selection process. Don’t just choose the cheapest policy, as it can be risky when making a claim.
The Role of Insurance Brokers in Choosing a Ship Policy
Managing risk in the shipping industry is certainly not easy. Ship owners, export-import companies, and shipping companies often face a variety of ship insurance policy options. From marine hull insurance, tanker insurance, cargo ship insurance, to container insurance, each product has different requirements, exclusions, and premiums. This is where the role of an Indonesian ship insurance broker becomes crucial.
Broker vs Agent: What is the difference?
Many people still confuse brokers and agents, even though their roles are very different:
- Insurance agent working for a specific insurance company. Their main job is to sell the company’s products.
- Insurance broker working for the client, not the insurance company. This means the broker is on your side to ensure you get the best policy for your needs.
In other words, if an agent is like a “salesperson”, then a broker is more like a ship insurance consultant who focuses on the interests of the ship owner.
Benefits of Using a Marine Insurance Broker
- Risk Analysis
The broker will analyze the type of vessel (tanker, cargo, container), shipping route, and cargo type. Based on this analysis, the broker will recommend the most appropriate policy. - Premium Negotiation
Because they have access to numerous insurance companies, brokers can help negotiate premiums more efficiently. This way, shipowners don’t have to pay more than they need to. - Claims Assistance
This is one of the main advantages. In the event of a loss, such as a ship being damaged in a collision or a container being damaged by bad weather, the broker will assist with the claims process until payment is finalized. The often-complicated claims process can be made quicker and smoother.
Real Case Examples
As an illustration,L&G Insurance BrokerI once assisted a shipping company facing a large claim due to ship damage. Initially, the claim process was potentially delayed due to incomplete documentation. However, with the support of a broker, the claim was finally settled according to the policy value without any hassle.
Types of Boat Insurance: Which One Is Right for You?
To avoid making the wrong choice, let’s discuss the types of ship insurance that are commonly used:
- Marine Hull Insurance
Protects the ship’s structure, machinery, and equipment. Suitable for tanker, cargo, and container ship owners. - Marine Cargo Insurance
Protecting cargo from various risks. Ideal for exporters and importers. - Protection & Indemnity (P&I)
Provides protection against legal liability to third parties. For example, if a ship crashes into a pier or causes marine pollution.
Each type of vessel, whether tanker, cargo ship, or container ship, has a different risk profile. Therefore, the appropriate policy will also vary. An insurance broker can help tailor it to your needs.
Conclusion
The year 2025 brings both opportunities and challenges for the Indonesian shipping industry. Indonesian ship insurance is increasingly needed due to growing exports, digitalization, and the complexity of global risks.
Starting from Marine Hull InsuranceFrom protecting your vessel to Export-Import Marine Insurance to safeguard your cargo, all are essential to ensuring the safety of your business. But an increasingly competitive market requires careful policy selection.
Don’t walk alone. Walk together. L&G Insurance Broker, you can get the best solutions for tankers, cargo, and containers. The L&G team is ready to help assess risks, negotiate premiums, and accompany claims.
