Navigating the Next Wave in Marine Insurance: Cybersecurity, Compliance, and a Changing Risk Landscape

In today’s increasingly digitized world, the U.S. Marine Transportation System (MTS) stands as a vital artery of global commerce, quietly powering trillions in annual trade. But as this ecosystem becomes more connected, its vulnerabilities have expanded. The U.S. Coast Guard has responded decisively, finalizing new maritime cybersecurity regulations for U.S.-flagged vessels, waterfront facilities, and offshore platforms. For insurance professionals, particularly those focused on distribution and M&A, this marks a major pivot point in the evolution of marine risk.

A Regulatory Wake-Up Call

Effective July 16, 2025, the new regulations require vessel and facility operators to develop Cybersecurity Plans, appoint dedicated Cybersecurity Officers (CySOs), and maintain documented Cyber Incident Response Plans. Submissions are due by July 2027, although training and operational compliance will begin sooner. While some aspects of the rule may be delayed for vessels, the trajectory is clear: cyber compliance is no longer optional.

From a DOXA M&A lens, this shift echoes a broader trend across industries where regulatory compliance becomes a value lever in both operations and transactions. Businesses that proactively address cybersecurity not only reduce risk, but also command greater attention and confidence in the M&A space.

Why Cybersecurity? Why Now?

The maritime sector has become an appealing target for sophisticated cyber actors. Disruption to navigation, cargo flows, or operational systems could cripple supply chains and cause significant economic fallout. The combination of autonomous technologies, IoT integration, and cloud-based fleet management expands the threat surface dramatically.

As one DOXA partner noted, “We’re seeing a new breed of attack that doesn’t just lock files—it seizes control of operations. In that context, insurance needs to be more than risk transfer. It must enable resilience.”

Cybercrime, particularly involving nation-state actors or ransomware-as-a-service groups, is no longer a theoretical concern. It is an operational threat that touches every corner of marine logistics.

Implications for Underwriters and Agents

Underwriters will likely revise their risk appetite and rating models to account for cybersecurity maturity. Traditional marine policies often exclude or sublimit cyber losses, meaning gaps in coverage could become significant. Agents must prepare for more detailed underwriting questions, including:

• Does the insured have an approved Cybersecurity Plan?
• Who is the designated CySO?
• How is access to OT (operational technology) segmented from IT?
• Are incident response simulations conducted regularly?

Additionally, regulatory fines for non-compliance or delayed reporting may not be covered under standard marine policies. Agents must collaborate with clients and carriers to ensure clarity.

Cyber as a Catalyst for Distribution Dialogue

These regulations present an excellent opportunity for insurance producers to demonstrate value. Independent agents who educate their marine clients about regulatory shifts, proactively review cyber exclusions, and suggest coverage enhancements will stand out.

One DOXA-affiliated advisor shared, “The best conversations we’re having aren’t about price. They’re about helping clients understand what their exposure really is and how insurance fits into a broader resilience strategy.”

This consultative approach will be essential as the regulatory landscape continues to evolve. It also aligns closely with DOXA’s M&A framework, which prioritizes long-term relationship value and reputation over short-term wins.

Marine Market Dynamics in 2025

Despite a softening market in certain lines, marine insurance remains a growth category. From inland marine and builders risk to ocean cargo and marine liability, capacity is up and competition is heating.

According to industry sources, marine carriers are enjoying two to three years of above-average profitability. This has drawn the attention of private capital, MGAs, and new entrants—all of whom are contributing to a drop in cargo pricing and marginal pressure on hull and liability lines.

However, profitability may not hold. Inflation, rising insured values, increased shipping activity, and catastrophe exposures all complicate the picture. For example:

• Builders risk is impacted by volatile material costs, making replacement cost coverage a moving target.
• Ocean cargo values have risen due to supply chain inflation and high-end commodities, leading to larger claims.
• Open-lot auto storage faces frequent weather losses from hail, flooding, and tornadoes.

Adding to the complexity, insurers are beginning to introduce exclusions related to PFAs (“forever chemicals”) in marine liability policies. These substances are under increasing scrutiny due to environmental and health risks.

AI and Technology: Tools, Not Replacements

Insurtech—including AI tools for CAT modeling, portfolio analysis, and pricing optimization—is becoming embedded in marine underwriting workflows. AI enhances risk mitigation and loss prevention but doesn’t replace the underwriter. Human judgment remains essential for understanding the nuances of maritime exposures.

Additionally, the rise of cargo tracking solutions improves loss mitigation, subrogation, and customer experience. Better data means better underwriting—and, from an M&A perspective, stronger underwriting means higher firm value.

What This Means for M&A Strategy

Firms that embrace regulatory change, digitize operations, and proactively manage risk are far better positioned for growth or acquisition. Marine MGAs or agencies that demonstrate high retention, consultative selling, and cyber-savvy operations signal enterprise value in a consolidating market.

For DOXA, this is a blueprint for how the marine sector should evolve: with professionalism, compliance, and forward-thinking risk solutions that support underwriters and agents alike.

The Bottom Line

Maritime insurance is undergoing a transformation. Regulatory compliance, cyber risk management, AI, inflation, and CAT volatility are all part of the new normal. Agents, MGAs, and carriers that respond with clarity, speed, and innovation will differentiate themselves.

The best partners don’t just write policies—they help navigate the storm.

To learn how DOXA can support your growth or acquisition goals in marine and specialty insurance, connect with our team today.

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