What transport reinsurance includes

Transport reinsurance protects insurers that write risks connected with moving people and goods. The main classes are marine hull and machinery, marine cargo and stock throughput, inland marine in the US, protection and indemnity (P&I) and marine liability, aviation (airlines, general aviation, airports, aerospace products) and sometimes space. These lines are global by nature: a vessel insured in Europe may sink in Asian waters, and cargo can pass through several jurisdictions on one voyage.

Why accumulation matters

Transport losses can be concentrated in unexpected ways. Thousands of containers and cars stored at one port, many cargo policies on one ship, or several aviation interests in one accident can all hit one insurer at the same time. The 2015 port explosion in Tianjin, China, and the 2024 collapse of the Francis Scott Key Bridge in Baltimore after a container ship strike are often cited examples of how a single event can involve cargo, hull, liability, property and business interruption covers together.

Typical structures

  • Quota share or surplus on cargo and hull books, especially for smaller or growing marine insurers.
  • Per risk excess of loss to cap large single-vessel or single-consignment losses.
  • Event and clash excess of loss to protect against several policies affected by one occurrence.
  • Whole-account or specialty excess combining marine, aviation and energy for diversified insurers.
  • Facultative for large fleets, high-value vessels, project cargo and aviation hull and liability.

P&I clubs and the London market

Shipowners' liabilities are largely insured by mutual P&I clubs. Members of the International Group of P&I Clubs pool large claims among themselves and buy a jointly placed General Excess of Loss reinsurance program, one of the largest single reinsurance placements in the world. Lloyd's and the London company market have a historic role as lead markets for marine and aviation risks, and London-based wordings such as the Institute Cargo Clauses and Institute hull clauses are widely used internationally.

US, Bermuda, Europe and Asia

In the US, inland marine (goods in transit, contractors' equipment, builder's risk and similar) is a large domestic class, while ocean marine and aviation rely heavily on international capacity. Bermuda reinsurers participate in specialty excess programs. European centers such as Scandinavia, Germany and France have long marine traditions, and Asian markets including Singapore, Hong Kong, Japan and China support growing shipping and trade.

Pricing and data

Reinsurers price transport business from loss experience, the mix of vessel types, trade routes and commodities, and the largest single exposures. For cargo they ask how the cedent monitors storage accumulations; for aviation, the fleet and passenger exposure behind each limit.

Exclusions and special risks

  • War, strikes, terrorism and political risks, often bought back separately
  • Sanctions compliance clauses, which are critical in shipping
  • Cyber exclusions or write-backs for vessel and aircraft systems
  • Nuclear, radioactive contamination and chemical or biological weapons exclusions

Working with Polis Re

Polis Re helps marine and aviation writers organize exposure and accumulation data and connects them with licensed reinsurance intermediaries and authorized reinsurers. For primary cover see marine, cargo and aviation insurance, or request support.