At RISKWORLD™ 2025 in Chicago, Dan Reynolds, the editor in chief of Risk & Insurance, caught up with James Thielebeule, the head of ocean marine, North America, for Sompo. Here is a transcript of that discussion, edited for length and clarity.
Risk & Insurance:
Thanks for meeting with us today, James. For starters, what effect are these ongoing tariffs having on the underwriting of cargo insurance?
James Thielebeule (JT):
Dan, it’s great to be speaking with you.
Right now, tariffs are in a state of flux—they’re evolving as trading partners continue to negotiate terms. It’s tough to say exactly how they’ll impact things, not just when it comes to cargo insurance, but throughout the supply chain and across many insurance product lines.
What we do know is that tariffs can impact the cost of goods traded internationally, contributing to higher inflation and reduced consumer demand, while also disrupting supply chains.
A cargo insurance policy is a valued policy, meaning premiums, limits and rates are indexed to insured values. When there is a significant change in those values—such as fluctuations caused by tariff adjustments—this volatility can introduce uncertainty into the market, complicating forecasting efforts.
For example, anticipation of potential tariff changes may lead businesses to adjust their inventory levels or sourcing strategies, which in turn could affect their insurance needs.
Trade dynamics are complex and interconnected. Adjustments in tariffs can alter shipment costs and insurance premiums, while shifts in consumer behavior or market conditions may impact demand for imported goods. This interplay creates a complex situation for insurers: while the need for coverage may increase, overall premium volumes could decrease.
It’s a shifting landscape, and we’ll need to keep an eye on how everything develops to understand the broader implications.
Risk & Insurance:
And, of course, the underlying word is uncertainty.
JT:
Uncertainty is the word of the day. There’s no question about it.
Risk & Insurance:
Cargo theft isn’t going away. Could you describe how you’re seeing it in terms of severity or frequency?
JT:
I’d say, generally, there’s been a significant increase in cargo theft over the last few years—and the complexity around it has evolved as well. Criminal organizations continue to become more sophisticated.
In response, the industry—including brokers—is taking more proactive measures to protect goods and mitigate risks. One key step is encouraging insureds to thoroughly vet the motor carriers they work with, ensuring strong safety records, proper licensing and secure operating histories.
Additionally, there’s increasing emphasis on technology adoption. At Sompo, we’ve been educating insureds on the benefits of real-time tracking tools—such as GPS devices, RFID tags, dash cams and electronic locking systems.
These technologies provide continuous updates on cargo location, enabling immediate detection of tampering or theft. Early alerts allow faster law enforcement involvement and improve recovery outcomes.
Overall, combining rigorous carrier vetting with advanced tracking is key to enhancing supply chain security and reducing losses.
Risk & Insurance:
We’ve been hearing a lot about social engineering—phony emails and false demands infiltrating communication networks. Are you seeing that?
JT:
Yes. There are several methods being used, including impersonating staff from legitimate companies to reroute cargo into the hands of criminals.
As an industry, we need to step up our efforts and enhance our strategies for identifying and combating these malicious actors.
Risk & Insurance:
The buzz around AI is everywhere. Are you seeing it enter your world, particularly for underwriters?
JT:
We’re all beginning to see AI enter our everyday lives. I believe it will continue to develop within the insurance industry, although it’s still early days.
There is clear potential on the underwriting side—particularly in managing an underwriter’s workload and streamlining submission flows.
Risk & Insurance:
In risk selection?
JT:
Underwriters receive a high volume of submissions. AI has the potential to identify which ones warrant closer attention, helping prioritise the most relevant risks.
Once filtered, AI could assist in evaluating those risks and support predictive modelling during the underwriting process.
For static cargo risks, integrating modelling tools into both submission and underwriting workflows—which we already do—can enhance efficiency and decision-making.
Risk & Insurance:
So, in a nutshell, you’re not a cynic about AI.
JT:
I think there’s real potential for improved efficiency. It could become a valuable resource when making underwriting decisions.
Risk & Insurance:
A lot of people are retiring in the next five to ten years. Are you optimistic the industry can fill those roles?
JT:
I’m very optimistic.
It may be influenced by being at Sompo, but across the industry there’s a strong focus on engaging and retaining new talent.
When I started over twenty years ago, there were only a few interns at the company I worked for. Now, the industry has embraced robust internship and trainee programmes.
Each year, I’m impressed by the calibre of interns and trainees entering the profession. The industry is doing a much better job of promoting itself.
In the past, people often fell into insurance. Today, many candidates actively choose it—studying risk management and insurance at university. The industry has made real progress in attracting and developing talent.
Risk & Insurance:
Is there anything else about marine cargo underwriting or Sompo you’d like to share?
JT:
From a talent perspective, Sompo—particularly in ocean marine—excels at sourcing candidates from diverse backgrounds.
We actively recruit individuals interested in both insurance and maritime careers. For example, we engage with graduates in risk management as well as those from Merchant Marine academies.
This approach allows us to bring in talent with genuine interest in either discipline and tailor our training accordingly.
Our team includes professionals from Merchant Marine academies and those with risk management degrees from institutions such as St. John’s University and the University of Georgia.
This dual strategy ensures we attract a broad range of expertise, strengthening our capabilities across both the marine and insurance sectors.
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