Marsh to Oversee Royal Australian Navy's Maritime Insurance Program

The MIP encompasses comprehensive coverage for both the construction and ongoing maintenance of naval vessels. Key assets under this program include six Hunter-class frigates, three Hobart-class air warfare destroyers, eleven proposed multi-role frigates, and six optionally crewed large surface vessels. Marsh's role will involve coordinating risk placement and providing expert advice on insurance matters related to these projects.

This appointment aligns with Marsh McLennan's broader strategy to expand its presence within the Australian public sector. Notably, its consultancy arm, Oliver Wyman, has recently established operations in Canberra to offer advisory services across various government portfolios.

The global marine insurance market is currently experiencing dynamic changes. According to Gallagher Specialty's Q2 2025 Marine Hull & Machinery and War Risks Market Update, insurers, particularly in the London market, are facing increased competition for high-performing risks. This competition has led to a softening of rates in certain segments. However, the report cautions that aggressive growth targets could strain rating structures, potentially leading to a decline in pricing stability if underwriting expansion becomes too broad.

Recent incidents underscore the importance of robust insurance coverage. For instance, a collision in March 2025 between the cargo vessel Solong and the tanker Stena Immaculate resulted in fires and casualties, highlighting the potential severity of maritime accidents. Additionally, geopolitical tensions, such as conflicts in the Red Sea and Black Sea, continue to influence war risk coverage, with vessels rerouting to avoid exposure.

Marsh's appointment to oversee the MIP reflects the Australian government's commitment to ensuring comprehensive risk management for its naval expansion projects. This collaboration aims to safeguard the substantial investments in the nation's defence capabilities.