One of the benefits of everyone having a high-definition camera in their pockets at all times is that visual evidence of the terrifying power of the sea is just one Google search away.
Spend some time looking up videos that sailors and oil rig workers post, and two things come to mind: exactly how massive the oceans are, and the human desire to master the elements through ingenuity and grit. We extract resources from deep beneath the ocean floor, and brave intense conditions to transport goods from one country to the next via massive cargo ships. Approximately 80% of the world’s good is transported by sea, yet only about 1000 containers are lost at sea every year.
As huge and safe we try to make our ships and oil rigs, the ocean is very much larger and infinitely more dangerous. There is a myriad of risks in the marine industry, which then leads to a lot of work for the insurance industry.
Weather represents perhaps the most obvious threat. Hurricanes can generate waves exceeding 100 feet in height, capable of snapping cargo ships in half or sending oil platforms adrift like toys. But even routine weather patterns pose constant challenges. The North Atlantic’s notorious fog banks have been claiming ships since the Titanic, while the seasonal monsoons in the Indian Ocean can delay shipping schedules for weeks, creating cascading economic effects that ripple through global supply chains.
Mechanical failures take on an entirely different dimension at sea. A broken-down truck can be towed to the nearest garage, but when a cargo ship’s engine fails in the middle of the Pacific, rescue operations become extraordinarily complex and expensive. Modern container ships, some stretching over 1,300 feet long and carrying upwards of 20,000 containers, represent floating cities that must be entirely self-sufficient for weeks at a time.
The maritime industry also grapples with the constant spectre of human error, amplified by the ocean’s intolerance for mistakes. Navigation errors that might result in a fender-bender on land can lead to catastrophic collisions at sea, where ships traveling at 20+ knots have little ability to stop or manoeuvre quickly. The 2021 Ever Given incident in the Suez Canal demonstrated how a single navigational miscalculation can paralyze global trade for days.
Crew fatigue presents another persistent challenge. Maritime workers often spend months at sea, working in shifts around the clock while dealing with the psychological stress of isolation and the physical demands of their environment. The International Maritime Organization has implemented strict regulations regarding rest periods, but enforcing these rules across the vast expanse of international waters remains difficult.
At the same time, marine insurers have developed sophisticated models for ‘general average’ situations – an ancient maritime principle where all parties in a sea venture proportionally share losses incurred for the common good. When a ship jettisons cargo to prevent sinking, for example, the cost is distributed among all cargo owners, regardless of whose containers were actually thrown overboard.
Today’s marine insurance industry increasingly relies on satellite technology, weather modelling, and real-time vessel tracking to better understand and price risks. Ships now carry sophisticated monitoring equipment that can alert insurers to potential problems before they become catastrophic failures. GPS tracking allows insurers to monitor vessels’ routes and identify when captains deviate into higher-risk areas.
Yet for all our technological advances, the fundamental relationship between humans and the sea remains unchanged. The ocean continues to humble our greatest engineering achievements, reminding us that despite our pocket cameras and giant ships, we remain small in the face of nature’s immense power. Marine insurers, perhaps more than anyone, understand this dynamic – they’re in the business of calculating the incalculable, of putting a price on humanity’s eternal struggle against the sea. A
Ahmad Zaki
Editorial director
Asia Insurance Review