Marine Insurers Urged to Address Modern Slavery Risks in Global Maritime Supply Chains
Mike Schuler August 19, 2025

The International Union of Marine Insurance (IUMI) has called for marine insurers to heighten their awareness of modern slavery and forced labor risks throughout maritime and global supply chains amid increasing regulatory scrutiny.

In a newly published Information Paper, IUMI highlights the growing reputational and legal risks facing insurers who underwrite operations connected to exploitative labor practices. The organization emphasizes that while insurers aren’t directly involved in operational abuses, they may inadvertently enable unethical practices through insufficient due diligence.

“Modern slavery is impacting an estimated 28 million people,” said Lars Lange, IUMI Secretary General. “Marine insurers must be aware of the potential consequences of insuring unethical clients and consider integrating ethical underwriting practices to support responsible business.”

The IUMI paper identifies several high-risk sectors with connections to marine insurance, including distant-water fishing, garment production, and the maritime industry itself. According to the report, the maritime sector continues to face significant challenges, with the International Maritime Organization recording a record number of seafarer abandonment cases in 2024.

IUMI recommends that marine insurers conduct robust due diligence during underwriting processes, implement clear ESG policies addressing human rights, and collaborate with stakeholders to improve transparency in maritime supply chains.

“Insurers are one step removed from these operations and it is important to acknowledge that they often face practical limitations in detecting these abuses given their indirect role and the complexity of global supply chains,” Lange noted. “However, as far as possible, marine insurers should take a proactive stance – not just to protect reputations, but also to align the insurance industry with global human rights standards.”

The paper comes as legislative measures like the EU Corporate Sustainability Due Diligence Directive and the UK Modern Slavery Act increasingly hold companies and their financial partners accountable for human rights abuses in their supply chains.

https://gcaptain.com/marine-insurers-urged-to-address-modern-slavery-risks-in-global-maritime-supply-chains/

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