The U.S. Marine Transportation System (MTS) is the backbone of global trade, moving trillions in goods annually. But as it becomes more digital, it also faces greater exposure. In response to rising cyber threats targeting this critical infrastructure, the U.S. Coast Guard has finalized new maritime cybersecurity regulations for U.S.-flagged vessels, waterfront facilities, and offshore platforms, marking a major shift in how the maritime industry must approach risk.
Here’s what retail agents should know, and why your clients may soon need new conversations about marine insurance coverage.
A New Security Mandate for Marine Transportation Systems
Effective July 16, 2025, Coast Guard regulations will require owners and operators of U.S.-flagged vessels and MTSA-regulated facilities to:
- Develop and implement Cybersecurity Plans covering account security, device security, and data protection.
- Maintain Cyber Incident Response Plans with detailed procedures, roles, and reporting protocols.
- Appoint a Cybersecurity Officer (CySO) responsible for plan oversight, audits, and training.
- Operators must submit Cybersecurity Plans by July 2027, though key actions and training will be required much sooner.
While public comments are being gathered on a possible delayed timeline for vessels, one thing is clear: the industry is moving toward mandatory, auditable cyber risk management.
Why Now?
The maritime sector is a prime target for cyberattacks, and the risks extend beyond IT systems. Disrupting vessel navigation, port operations, or cargo flows could cripple supply chains and inflict massive financial losses. The new rules aim to safeguard critical functions by ensuring operators can detect, respond to, and recover from cyber incidents.
“In 2025, the logistics and shipping industries are facing an increasingly complex threat landscape,” says Ed Chadwick, Jencap VP and Professional Lines Broker. “Attacks against supply chains and their digital infrastructures have become more sophisticated, often employing AI-enhanced phishing methods, ransomware, and credential compromise at scale. These attacks have impacted everything from individual fleets to global trade routes.”
As the Coast Guard noted, growing reliance on autonomous systems, IoT, and remote operations has only widened the threat surface. Nation-state actors and organized crime groups are increasingly targeting maritime assets for ransom, disruption, or espionage.
Implications for Marine Insurance
These regulatory changes could significantly impact underwriting and coverage decisions:
- Higher scrutiny: Insurers may request details on a client’s Cybersecurity Plan and incident response readiness.
- Potential coverage gaps: Many marine policies exclude or sublimit cyber losses; dedicated cyber coverage may be needed to fill those gaps.
- Regulatory fines and penalties: Some cyber policies may need to be reviewed for coverage of fines arising from non-compliance or delayed reporting.
As highlighted in a recent IA Magazine piece on marine insurance trends, underwriters are already factoring cyber maturity into placement decisions, and the new rules will accelerate that focus.
A Conversation Opportunity
For agents, this combination of rising threats, increased regulations, and underwriting shifts presents both a challenge and an opportunity. Now is the time to help your clients understand the new maritime cybersecurity regulations and compliance deadlines, and to review their existing marine insurance and cyber coverages for potential gaps.
“As the threat landscape has become increasingly intricate, all businesses must take responsibility for their security posture,” adds Chadwick. “While the regulations imposed may appear burdensome, they represent a significant step toward a more resilient industry. Moreover, clients should be aware of cyber insurance products that can assist in maintaining business continuity in the event of an outage or attack.”
Jencap’s experts are here to guide you through the complexities of modern marine risks, from evolving cybersecurity requirements to technology-driven exposures and operational disruptions. Contact us today to ensure your clients are prepared to navigate this new era of marine risk.
