How Insurance Pricing Is Quietly Reshaping the RoRo Trade
After the 2022 PCTC losses, hull and cargo underwriters have moved from "EV surcharge" to outright capacity withdrawal on certain routes. The fleet has to respond.
In 2022 a single PCTC casualty wiped out an estimated $400M+ across hull, cargo, and salvage. Underwriters absorbed it. The 2023–2024 wave was the inflection: capacity providers began declining renewals on EV-heavy trades altogether.
The pricing signal
Operators are now seeing two-tier quotes: a standard rate for ICE-only sailings and a materially higher rate when EV percentages cross thresholds — typically 15–25% of the deck mix. Some routes price beyond what the freight rate can carry.
What underwriters want to see
- Per-vehicle thermal telemetry, time-series, retained.
- A demonstrable detection-to-suppression interval.
- Independent audit of the detection layer (not OEM self-certification).
The carriers that can show all three are starting to negotiate back to flat rates. The ones that cannot are quietly being repriced out of the trade.
Sources
- IUMI — Marine Insurance Loss Reviews, 2023 and 2024 Conference Reports.
- Allianz Global Corporate & Specialty — "Safety and Shipping Review" 2023 and 2024.
- Lloyd's List — coverage of the MOL Felicity Ace cargo and hull loss (2022–2024).
- TradeWinds — "Car-carrier underwriting under pressure" market reporting (2023–2024).
- Marsh — "Marine Cargo Insurance Market Update 2024."
- [VERIFY: 15–25% EV deck-mix threshold for two-tier quotes — operator/broker-internal range; not in public underwriter circulars.]