In today's complex economy and volatile marine cargo market, traditional insurance often falls short in managing trade disruptions and exposures, according to a blog by Aon South Africa. Even in a buyer-friendly environment, where insurers compete aggressively, carriers remain cautious, limiting volatility by offering smaller lines while chasing growth in riskier segments.
“This tension — between buyer demand for stability and insurer appetite for limited risk— is fuelling the need for innovative risk capital strategies. With geopolitical pressures, shifting trade routes and weather-related disruptions adding to volatility,” said Ms Natalie Cooper, senior marine and aviation broker at Aon South Africa.
A shift in thinking: Risk capital as a strategic tool
In 2025, South African businesses are navigating an increasingly volatile marine cargo landscape shaped by tariffs, trade route disruptions and environmental risks, with weather extremes and global trade volatility reshaping supply chains. Businesses need to reframe their marine cargo insurance solutions to integrate a risk capital approach seamlessly into the mix.
Ms Cooper said, “Insurers are cautious, limiting cover and tightening terms, leaving businesses looking for alternative solutions to manage risk and allocate capital across multiple jurisdictions, in new ways."
“The risk capital approach reframes risk management as a source of strategic value, not just a line item of cost. By tapping into alternative capital — alongside traditional markets — businesses can access broader, more flexible solutions for exposures such as trade disruption, delays, non-damage business interruption, supply chain breakdowns and even emerging risks tied to new technologies like electric vehicle logistics,” she explained.
Key tools include:
• Parametric solutions – fast payouts based on triggers, improving cash flow certainty.
• Self-insurance vehicles (Captives, Cell Captives or Contingency Policies) – offering greater control and customisation.
• Insurance-linked securities & structured solutions – unlocking third-party balance sheets for capacity.
• Facultative reinsurance – tailored placements for hard-to-cover risks.
This data-driven, capital-agnostic approach allows risk buyers to build bespoke programmes that go beyond risk transfer, strengthening resilience, optimising capital and unlocking value in the process.