Opening Address by Mr Baey Yam Keng, Minister of State, Ministry of Transport, at the International Union of Maritime Insurance (IUMI) Conference

Mr Frédéric Denèfle, President, International Union of Marine Insurance, or IUMI,

Mr Lars Lange, Secretary General, IUMI,

Mr Mack Eng, Chairman, IUMI 2025 Organising Committee,

Mr Ho Kai Weng, Chief Executive, General Insurance Association of Singapore,

Distinguished Guests,

Ladies and Gentlemen,

1.     Good morning and welcome to the IUMI 2025 Conference. To our international guests, a warm welcome to Singapore too. We are honoured to host this year’s IUMI Conference in Singapore, more than 20 years since it last came to our shores in 2004. 

Changing global operating environment 

2.     The theme of this year’s conference, “Charting Opportunities in Changing Tides”, is apt. The maritime industry is transforming in the face of three key shifts in the operating environment: geopolitical developments, rapid technological advancements, and the green transition. This transformation has changed the risk profile of once familiar shipping activities, while opening up new opportunities for the industry and marine insurance community.  

a.     First, the maritime industry, with its global nature, is particularly vulnerable to geopolitical risks. The attacks on ships traversing the Red Sea saw shipowners updating their risk maps and shifting shipping routes to safeguard vessels and crew. More recently, the tariffs by the US are expected to shift global supply chains as businesses seek new trading partners and shipping routes. These new routes come with varying risk profiles, once again altering shipowners’ risk maps.

b.     Second, rapid technological advancements, from artificial intelligence to autonomous operations, will enhance efficiency and unlock cost savings for the industry. But the adoption of these technologies and shift towards interconnected digital systems make us vulnerable to new and more complex risks. Cybersecurity risk has emerged as a key concern, as bad actors target digital vulnerabilities in ploys to disrupt supply chains. With navigational decisions undertaken by algorithms, based on data from sensors, questions of liability also increase in complexity.  

c.     Finally, the adoption of new sustainable solutions such as alternative fuels, like ammonia, methanol and hydrogen, are essential to the industry’s green transition. The risk profiles of such fuels differ vastly from conventional fuels. They also require different handling and operational models, widening the spectrum of risks to be addressed.  

3.     Marine insurance remains the cornerstone of global shipping to tackle this widening scope of risks brought upon by our evolving operating environment and ensure that the maritime industry is able to seize the opportunities that these shifts present. 

a.     Marine insurance acts as a safety net to protect vessels, crew and cargo. 

b.     Especially for new and emerging risks, marine insurance provides vital underwriting. This gives the industry confidence to capture new opportunities while managing their risk exposure. 

c.     Marine insurance is thus a strategic enabler to keep supply chains and global trade flowing, amid the changing operating environment, and uncertain times. 

Maritime Singapore’s Response 

4.     The importance of marine insurance can be seen in the growth of the marine insurance community and its services in Singapore last year, despite global uncertainties. 

a.     For example, West of England Protection and Indemnity Club, which set up its Singapore office in 2017, has been growing steadily and recently introduced a new loss prevention desk to provide value-added services to its clientele in Asia. 

b.     Skuld Singapore also expanded to provide Hull and Machinery product offerings. 

c.     These developments underscore the value of Singapore’s maritime ecosystem, where insurers deliver tailored and effective solutions to their customers.

5.     Maritime Singapore will continue working closely with the marine insurance community to respond to the three key shifts facing the global maritime industry I detailed earlier. 

6.     First, we will continue growing the Singapore War Risks Mutual, or SWRM, against the backdrop of the volatile geopolitical environment. Launched in 2015, SWRM is the only mutual war-risk insurer in Singapore and South-East Asia. It provides cost-effective and responsive insurance solutions and market leading services with a dedicated team based here in Singapore. This ensures that essential food, energy and medical supplies continue to be transported, even in times of crisis. 

a.     In conjunction with its ten-year anniversary this year, SWRM rolled out a digital platform that actively tracks vessels underwritten under the SWRM in real time, with premium notifications and debit notes issued automatically. The platform streamlines and smoothens shipowners’ experience for the placement of war risks insurance. 

b.     We look forward to welcoming more industry partners on board SWRM.

7.     Second, to tackle cybersecurity risks, the Singapore Shipping Association, or SSA, launched the Maritime Cyber Security Maturity Scorecard last year with the support of Singapore’s national maritime agency, the Maritime and Port Authority of Singapore, or MPA. The scorecard helps ship owners and operators, including Small and Medium Enterprises, assess and improve their cybersecurity posture. Building on the scorecard, SSA recently launched a centralised cybersecurity insurance request process. The process matches shipowners with suitable insurers for cyber coverage. Through such initiatives, we can capture opportunities from technological advancements with the assurance that associated cybersecurity risks are adequately managed.  

8.     Third, given the nascency of green solutions, MPA will work with the industry and insurers to enhance our collective knowledge of associated risks. This will enable the mitigation of risks upfront, and support insurers in designing relevant products to address residual risks. 

a.     MPA is developing national standards to guide the safe bunkering of alternative fuels. In March 2025, MPA published a Technical Reference for methanol bunkering, which sets out a framework and guidelines for the safe and efficient use of methanol in bunkering operations. A similar Technical Reference for ammonia is in development and expected to be completed this year. 

b.     In addition to strengthening operational safety, these standards will support insurers in assessing and pricing risks. This enables insurers to offer more competitive products and capture opportunities from the green transition as shipowners gain confidence to adopt such green solutions.

Local talent development 

9.     The development of such insurance products is underpinned by our skilled local talent. Singapore is actively growing a sustained pipeline of marine insurance experts to strengthen our position as a leading marine insurance hub. 

10.    MPA is working closely with Institutes of Higher Learning to spark interest in marine insurance in our next generation of talent. Beyond incorporating marine insurance modules into key courses, such as Nanyang Technological University’s Bachelor of Science in Maritime Studies, we will also continue to encourage university undergraduates from diverse disciplines to take up internships at marine insurance companies, such as through the MPA Global Internship Award. This will facilitate the entry of young talent to the marine insurance community. 

11.    Continuous education and training are essential to upskilling our workforce across all career stages. I am happy to hear that IUMI will hold its Cargo Masterclass in Singapore next year, its first such masterclass in Asia. The programme will be delivered by industry experts and offer in-depth exploration of key cargo insurance concepts. I am certain it will also provide valuable opportunities for participants to learn from and network with their peers across the sector and region.

Conclusion 

12.    Looking ahead, our evolving operating environment will only get more complex. Collaboration will be key to weathering rough seas ahead and capturing new opportunities. I congratulate the IUMI Secretariat and the Singapore organising committee for bringing together such a wide-ranging group of experts.  We have insurers, brokers, lawyers, underwriters and marine professionals coming together to ideate and address various risk areas. Through open sharing of ideas and feedback, and co-creation of frameworks and solutions in new areas such as green and digital investments, we can strengthen our marine insurance ecosystem. Together, we can build a secure and sustainable maritime future, anchored in partnership, and powered by trust. 

13.    I wish you a fruitful conference ahead. Thank you.