SIRC 2026: Disciplined underwriting key as Asia’s marine sector balances growth and volatility

November 3 2026 by

Asia presents significant opportunities for marine (re)insurers as maritime assets, shipbuilding and high-tech manufacturing continue to grow across the region, according to Rama Chandran, managing director and head of marine at global specialist MGA Rokstone Underwriting.

However, volatility amid the current risk environment would require the market to remain disciplined, the Singapore-based marine veteran added.

“With Asia accounting for approximately 97% of global shipbuilding market share and an orderbook extending to 2030, the region is well positioned to play a leading role in the development of increasingly complex, decarbonised and efficient vessels,” he said.

High-tech manufacturing has also grown several-fold over the past 12 months, adding to the importance of understanding the changing nature and value of cargo, Chandran added.

The growth, though, brings challenges, with geopolitical volatility, supply-chain disruption, rising asset values and nat cat exposure requiring a deeper understanding of risk and effective mitigation measures, according to the underwriter.

“At the same time, marine rating adequacy remains under pressure, while inflation in equipment and services is likely to weigh on margins,” he added.

For decarbonisation, challenges remain around capital, the availability of alternative fuels, infrastructure development, battery limitations and regulation, he said.

“Shipping has always been an adaptive industry, and we believe it will continue to evolve, but insurers must understand the emerging exposures and ensure that pricing reflects the risks,” Chandran said.

Sailing ahead

Backed by a multi-year US$25 million Lloyd’s capacity from Tokio Marine Kiln, Rokstone’s Singapore operation was established in October 2025, covering all marine products, with a priority on complex risks.

“Our first year of operation in Singapore has been promising. With the support of our partners and clients, and an expanded team, we have met our targets for the first year. Jackie Lan joined us in April from QBE, further supporting the development of our regional proposition,” Chandran said.

“Looking ahead, we see opportunities arising from the growth of Asian shipbuilding and high-tech manufacturing, the transition towards decarbonisation, and the increasingly complex geopolitical and supply-chain environment.

“We also intend to continue investing in AI and data to improve risk understanding and support more dynamic underwriting.

“Our approach is to grow sustainably rather than pursue premium for its own sake. We are confident in our value proposition and service levels, and we remain on track to achieve our five-year revenue and profit targets.”

Navigating rough seas

While the Asian marine market is experiencing continued pressure on rate adequacy over the past 24 months, Chandran noted “significant capacity withdrawn from parts of the market”, particularly for more complex risks.

Inflationary pressures on equipment and services are also adding to the challenge, and he expects margins to be significantly impacted.

“At the same time, geopolitical developments, decarbonisation, changing supply chains and rising asset values are creating an increasingly complex risk landscape,” he added.

Due to the ongoing Middle East conflict, Asia may also see potential knock-on effects on shipping routes and port congestion, according to Chandran.

“Although the immediate impact on global container trade may be manageable, prolonged disruption could create greater congestion and accumulation pressures at major Asian hubs,” he said.

“The duration and extent of the disruption will be critical in determining the ultimate impact.”

Looking towards the 1.1 renewals, the key question is whether pricing and underwriting terms will adequately reflect the risks being assumed, according to the underwriter.

“We do not expect much to change going into 1.1 renewals, but with an increasing challenge on profitability, we can expect some prudency on a case-by-case basis,” Chandran added.

“The significant war losses in 2026 are one cause, as well as inflation. Cedent retention management has been more pronounced from a facultative perspective in 2026.”

Partner Content
Join the mailing list Designed to help you stay ahead, our daily newsletter provides a round-up of the latest news and insights, delivered straight to your inbox.
Print Edition
Subscribe to receive our quarterly print magazine.