Marine insurance and ocean biodiversity: a call to action
 The ocean is the planet’s largest ecosystem, yet it remains one of the least protected. As the High Seas Treaty enters into force, the maritime industry faces a pivotal moment: how to align shipping practices with biodiversity preservation. Marine insurers, often overlooked in this conversation, have a unique role to play in shaping the future of sustainable commerce.
On January 17, the Biodiversity Beyond National Jurisdiction Agreement - better known as the High Seas Treaty - formally came into effect after reaching 60 ratifications. This milestone marks a new era in ocean governance. Much like the Paris Agreement for climate, the Kunming-Montreal Global Biodiversity Framework sets a headline target: conserving 30 per cent of land, inland waters, and marine areas by 2030.
Yet the oceans lag far behind. Only 9.6 per cent of the ocean is designated as marine protected areas, and a mere 0.9 per cent of that lies in the high seas, which cover 61 per cent of the ocean’s surface. This imbalance underscores the urgency of action. More than 90 per cent of marine species remain undiscovered, meaning the stakes are higher than we can fully comprehend.
Protecting biodiversity is not just about conservation—it is about safeguarding the economic and climatic stability that oceans provide. Shipping is both a lifeline of global trade and a source of ecological risk. The industry’s decarbonisation drive has revealed opportunities to deliver gains for climate and biodiversity.
The International Maritime Organization has advanced work on a legally binding biofouling instrument, aimed at improving hull efficiency while curbing the spread of invasive species. This is no small matter: shipping is responsible for 60–90 per cent of exotic species introductions worldwide.
Beyond biofouling, operational innovations such as just‑in‑time port arrivals, propeller retrofits, and optimised routing can reduce emissions and protect migratory corridors for marine mammals. Coastal states are already experimenting with measures: California promotes voluntary 10‑knot speed reductions during whale migration season, Canada enforces seasonal speed limits in designated zones, and Brazil issues guidance for ships in humpback whale areas.
These initiatives show that biodiversity‑conscious shipping is not only possible but practical. Contractual mechanisms are also emerging. Decarbonisation clauses in charterparties, for instance, can hold shipowners and charterers accountable for environmental performance. Such clauses could evolve to include biodiversity standards, embedding ecological responsibility into the fabric of maritime commerce.
The push for biodiversity‑conscious practices is not limited to regulators. Investors and supply chains are demanding greater transparency, using frameworks such as the Taskforce on Nature‑related Financial Disclosures. These pressures are reshaping expectations across the industry, creating incentives for companies to demonstrate stewardship of ocean ecosystems.
Marine insurers, with their access to operational data and claims histories, are uniquely positioned to accelerate this shift. By integrating biodiversity considerations into underwriting and risk assessment, insurers can influence behaviour across the shipping sector.
Marine insurance may seem distant from conservation, but its influence is profound. Insurers can prepare for new regulations by strengthening due diligence processes, ensuring clients are ready to comply with environmental obligations. For example, evidence of completed Environmental Impact Assessments could become a prerequisite for coverage in areas beyond national jurisdiction.
Nature‑based risk modelling offers another avenue. Healthy ecosystems act as natural buffers against climate shocks, reducing risks such as flooding and storm surges. Ports, situated at the intersection of land and sea, are particularly vulnerable. By incorporating ecosystem data into risk models, insurers can better evaluate resilience and incentivise conservation.
Insurers can also shape industry standards by issuing technical guidance and promoting transparency. Building on frameworks like the Poseidon Principles, similar models could address biodiversity risks such as ship strikes, underwater noise, and habitat degradation. Loss prevention expertise, combined with digital tools and ecological data, can transform compliance pressures into collaborative solutions.
Supporting clients’ compliance is equally critical. Insurers already monitor fleets for sanctions and regulatory adherence. Extending these platforms to biodiversity data could help shipowners report under voluntary frameworks like TNFD or mandatory ones such as the EU’s Corporate Sustainability Reporting Directive.
Benchmarking across segments would encourage biodiversity‑friendly practices, while global scorecards could highlight compliance with measures like slow‑speed zones to protect whales. As attention to biodiversity grows, so too does the risk of fragmentation. A proliferation of poorly designed indicators could undermine credibility or even incentivise harmful behaviours.
The adoption of carbon intensity metrics under the Poseidon Principles shows that the industry can unite around a limited set of indicators. A similar approach is needed for biodiversity, ensuring comparability and avoiding greenwashing.
Proactive dialogue between insurers and shipowners can uncover early signals of risk, from close whale encounters to ballast water management challenges. These insights support compliance, reduce liability, and foster shared understanding. Owners should consider tools like an Impacts and Aspects Register under ISO 14001 to monitor nature‑related risks and opportunities.
On the claims side, ecological impacts must be addressed alongside traditional liabilities. Groundings and oil spills increasingly demand biodiversity‑sensitive responses, supported by tools such as environmental DNA analysis to assess habitat damage. Collaboration with scientists, NGOs, and local authorities will be essential for credible restoration efforts.
The next four years will be decisive. Insurers that act now by innovating, collaborating, and influencing standards, will not only manage risk but shape the future of sustainable maritime commerce. The High Seas Treaty provides the framework, but it is industry actors, including insurers, who must bring it to life.
Marine insurance is more than indemnification. It is a lever for stewardship, a mechanism to align economic activity with ecological responsibility. By embracing this role, insurers can help ensure that the oceans remain a source of life, stability, and prosperity for generations to come. |
