Insurance Business ReviewDECEMBER 20258IN MY OPINIONSAILING TOWARD NET ZERO: INSURANCE IMPLICATIONS OF DECARBONIZATION IN THE CRUISING INDUSTRYBy Rocco Bozzelli, Head of Global Insurance, MSC CruisesThe reflections in this article are drawn from my recent presentation at the 2025 Risk-In Conference in Zurich, where I had the opportunity to explore the complex and evolving intersection between decarbonization, marine operations and insurance. The topic--"Decarbonization across Industries: Challenges, Opportunities and Insurance Implications, with a Focus on the Cruising Sector"--sparked an engaging dialogue with risk professionals, underwriters and corporate leaders. This piece expands on those insights, with the hope of contributing to the broader conversation now underway across our industry.The global push for decarbonization is reshaping the way industries operate and shipping is no exception. The cruising sector, in particular, sits at the intersection of heavy regulation, rapid technological innovation and rising public expectations. These pressures are generating not only operational and strategic challenges but also a wave of new risks that require insurers to rethink how they assess and support the industry.In recent years, regulators have accelerated efforts to drive down emissions in maritime transport. The revised 2023 IMO GHG Strategy sets clear targets and timelines. The FuelEU Maritime Directive, introduced as part of the EU's Fit for 55 package, further tightens requirements around alternative fuels and lifecycle emissions reporting. These frameworks are binding and directly influence vessel design, fuel selection and operational choices. Technology Meets RiskDecarbonizing ships is not as straightforward as just switching to cleaner fuels. LNG could be considered as a "fuel in transition", with some decarbonization potential already in its fossil form and much greater potential in bio and synthetic forms. However, it also has some drawbacks--larger storage requirements, supply chain vulnerabilities, availability and costs of renewable LNG and methane slip. Other potential future fuels, such as methanol, ammonia and liquid hydrogen, are potentially promising but face technical and safety challenges, as well as very limited availability and high costs. Moreover, innovations like fuel cells and carbon capture systems are still in developmental stages and raise new operational and insurance questions.For insurers, these changes introduce new dimensions of risk. Vessels using dual-fuel systems or prototypes powered by non-traditional energy sources may not fall within existing underwriting models. Considerations around salvage, liability, regulatory compliance and asset valuation need to be re-examined.The Role of the Insurance IndustryThe insurance sector must evolve alongside the industries it serves. This means not only responding to risk but anticipating it by supporting clients through tailored coverage, proactive risk management services and underwriting philosophies aligned with the transition to net zero.This shift is particularly relevant for small and mid-sized operators, who often lack the capital and expertise of larger players. Without adequate support, they risk falling behind or exiting the market altogether, potentially driving further consolidation. A more Rocco Bozzelli
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