The MIP encompasses coverage for ship construction and sustainment, reflecting the government's commitment to enhancing national defense through substantial investments in naval assets. Under this agreement, Marsh will coordinate risk placement and provide advisory services for the Navy's shipbuilding projects, which include:
- A fleet of six Hunter-class frigates
- Three Hobart-class air warfare destroyers
- Eleven proposed multi-role frigates
- Six optionally crewed large surface vessels
This appointment aligns with Marsh McLennan's broader expansion within the Australian public sector. The firm's consultancy unit, Oliver Wyman, has recently established a presence in Canberra to complement Marsh's existing operations and provide advisory services across various government portfolios.
The global marine insurance sector is currently experiencing dynamic changes, influencing pricing strategies and underwriting appetites. 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, leading to rate softening in certain segments. Additionally, geopolitical instability continues to impact war risk coverage, with threats in regions like the Red Sea and Black Sea prompting vessels to reroute to avoid exposure.
Marsh's appointment to the Maritime Insurance Program underscores the critical role of comprehensive risk management in supporting Australia's defense objectives. By leveraging its global expertise, Marsh is well-positioned to navigate the complexities of the evolving marine insurance landscape, ensuring robust coverage for the Navy's ambitious expansion plans.
