The maritime industry faces unprecedented challenges, from ageing fleets and escalating geopolitical tensions to shifting climate conditions and weather-related risks. An ageing global fleet increases vulnerability to failures and operational disruptions. Indeed, safety incidents have surged by over 40% in recent years, while new threats emerge from regional conflicts and environmental volatility. In this context, reactive risk management is no longer enough.
Moving forward, AI and data analytics are expected to support industry transformation. These advances aren’t just technological; they can help shipping companies work towards environmental objectives and navigate a rapidly changing world with confidence.
Industry challenges: An evolving landscape
Despite centuries of experience, the industry faces mounting risks impacting operations. Nearly half of the world’s fleet is over 25 years, which makes it more prone to failures. According to DNV’s 2024 report, machinery damage accounts for approximately 60% of casualties – up from 38% a decade ago – highlighting the need for early detection and proactive management.
Safety incidents surged by 42% between 2018 and 2024, despite only a 10% fleet growth. Older vessels, especially those over 25 years old, contributed to nearly half of the incidents. Additionally, climate-related risks and geopolitical conflicts, such as those in the Middle East, further heighten operational risks, disrupting routes, increasing security threats, and demanding advanced risk mitigation strategies.
In response, the industry is turning to AI systems capable of integrating environmental, geopolitical, and operational data. These tools provide real-time intelligence to avoid danger zones, manage disruptions, and enhance resilience, turning signals into actionable insights for safer, more efficient operations.
The predictive power of AI: Turning data into foresight at sea
AI is geared towards prediction, absorbing massive amounts of data for analysis to produce reliable results. This can dramatically transform risk management practices within maritime operations.
One way AI and data analytics revolutionise risk management is through predictive maintenance and safety checks. Smart sensors monitor critical systems like vibrations, pressures, temperatures in real time. They detect anomalies early, allowing planned repairs before failures occur, which reduces unexpected downtime, costly repairs, and crew risks. Additionally, AI strengthens operational planning through smarter routes and environmental adaptations. By analysing meteorological data, vessel characteristics, voyage data, sea conditions, port congestion, and geopolitical risks, AI helps to optimise routes dynamically. This can support safer journeys, potential fuel efficiency gains and associated emissions reductions where supported by operational data, as well as better compliance with standards like IMO 2020. AI also enables proactive risk management throughout the vessel’s lifecycle. From design and build to operations and maintenance, early detection and proactive maintenance reduce both frequency and severity of incidents.
Looking ahead, AI safety tools will be more precise in predictive maintenance. However, risks in cybersecurity, poor data quality, or algorithm biases can cause unintended consequences. Recognising this and implementing safeguards can maximise AI’s benefits while reducing vulnerabilities. For insurers, enhanced analytics improve underwriting, risk segmentation, inspections and tailored maintenance guidance, boosting operational flexibility and resilience for operators within a volatile environment.
The marine industry’s next chapter: Innovation with impact
Future technological advancements may offer practical benefits for maritime operators and reshape industry operations. For example, remotely operated vehicles (ROV), such as underwater drones equipped with high-definition cameras, utilise automation and sensors to perform real-time assessments of hulls and equipment, as well as detect damage. These tools save time, reduce safety risks, and lower costs by decreasing the need for dry-docking.
Furthermore, digital twin technology improves scenario planning and emergency preparedness through virtual ship and port replicas, allowing for simulations of maintenance, emergency responses, and operations. This enhances planning, training, and risk analysis, helping to reduce costs and improve safety before implementing real-world changes. In addition, although still in development, autonomous vessels and remote operations aim to reduce human error and operational costs.
However, as maritime operations become more digital, robust cybersecurity measures, such as encryption, access controls, and incident response plans, become essential. These safeguards protect operational data, prevent disruptions, and ensure safe, reliable vessel operations in a rapidly evolving environment.
Preparing for tomorrow: Business and personnel
Looking forward, AI-driven decision-making, such as real-time risk assessment, and predictive analytics, is likely to become increasingly common. Success will depend on readiness.
Organisations can manage technological transformation more effectively with staged implementation. Starting with targeted pilot projects allows companies to test technologies, define key performance indicators and demonstrate value before scaling solutions.
Despite the benefits, the maritime sector faces hurdles in digital transformation. Advanced digital tools will fail to deliver value without workforce engagement and training. Organisations must ensure their people have the skills and mindset to accelerate adoption successfully.
The tightening global regulatory landscape makes industry collaboration more essential: Shared standards and partnerships between shipbuilders, technology providers, insurers and regulators reduce integration risks, improving interoperability across fleets and platforms. Embracing AI and data analytics is a strategic necessity to protect assets, support more efficient operations and better-informed environmental decision-making, and position fleets for the future.
The seas ahead
The future of maritime operations relies on leveraging AI and data analytics. To manage evolving risks and seize new opportunities in safety, efficiency, and resilience, marine operators should consider how best to prepare by investing in new technologies, training their teams, and working together across the industry.
As risks evolve, so does our approach to risk management. Being a global marine insurer, AXA XL supports marine operators through this digital transition with an integrated approach. With expertise in marine risk consulting, AXA XL develops innovative, data-driven insights to enable smarter underwriting and proactive risk management. This can help fleets operate more safely, efficiently, and resiliently, while supporting environmental objectives today and into the future.
- Share This Article:
-
-
Global Asset Protection Services, LLC, and its affiliates (“AXA XL Risk Consulting”) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. AXA XL Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, AXA XL Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.
US- and Canada-Issued Insurance Policies
In the US, the AXA XL insurance companies are: Catlin Insurance Company, Inc., Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Specialty Insurance Company and T.H.E. Insurance Company. In Canada, coverages are underwritten by XL Specialty Insurance Company - Canadian Branch and AXA Insurance Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following AXA XL surplus lines insurers: XL Catlin Insurance Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor Insurance Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.