Marine Insurance Market Report 2025

The marine insurance market size has grown strongly in recent years. It will grow from $32.2 billion in 2024 to $34.34 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to global trade expansion, rise in international shipping, piracy and maritime security concerns, stringent regulatory requirements, natural disasters and climate risks.

The marine insurance market size is expected to see strong growth in the next few years. It will grow to $45.73 billion in 2029 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to emergence of unmanned vessels, cybersecurity concerns, adaptation to climate change, green shipping initiatives, renewable energy expansion. Major trends in the forecast period include digitization and insurtech, data analytics and predictive modeling, autonomous vessels and technology risks, economic and trade dynamics, alternative risk transfer mechanisms.

The growth of global trade is anticipated to significantly boost the marine insurance market in the coming years. Global trade encompasses the import and export of goods and services across international borders, and the increasing reliance on maritime transport for these activities underscores the importance of marine insurance. Shipping companies are increasingly seeking insurance coverage to safeguard against potential damages to vessels and cargo. For instance, in October 2024, data from GOV.UK, a UK-based government services provider, revealed that the total value of goods imported in August 2024 reached £51.2 billion ($66.27 billion), marking a £2.7 billion ($3.49 billion) increase (6%) compared to August 2023. This rise in trade activity highlights the growing need for marine insurance as companies look to protect their interests in an expanding global market.

The increasing frequency of natural disasters is expected to drive the growth of the marine insurance market in the future. Natural disasters are sudden and catastrophic events in nature that often result in significant damage and loss of life. Marine insurance plays a critical role in mitigating the financial impact of natural disasters on the maritime industry. It serves as a safety net for shipping companies, cargo owners, and other stakeholders involved in marine transportation, offering financial compensation for losses or damages caused by natural events such as hurricanes, typhoons, earthquakes, and tsunamis. For example, in January 2022, according to the NOAA National Centers for Environmental Information, the United States experienced 18 separate weather and climate disasters, each costing at least 1 billion dollars. Therefore, the increasing occurrence of natural disasters is a key driver behind the growth of the marine insurance market.

Major companies in the marine insurance market are increasingly introducing cargo war risk insurance facilities to provide extensive coverage for goods in transit, safeguarding against potential losses due to piracy and conflict-related incidents. Cargo war risk insurance is a specialized type of coverage that protects cargo owners and shipping companies from damages or losses to goods transported by sea that may arise from war-related activities. For example, in April 2024, Howden Insurance Brokers LLC, a UK-based firm, launched its Red Sea cargo war insurance. This facility offers coverage up to $50 million per insured vessel, with the largest limit quoted reaching $150 million. Such flexibility allows clients to select varying levels of protection tailored to their specific needs. Notably, this is the first dedicated insurance product designed specifically for cargo vessels operating in active conflict zones, including critical maritime routes like the Bab al Mandab Strait, the Red Sea, and portions of the Indian Ocean. This innovative offering highlights the growing demand for specialized insurance solutions in response to evolving global trade dynamics and security challenges.

Major companies in the marine insurance market are forming strategic partnerships to enhance their service offerings and improve risk management capabilities. Port disruption insurance is a specialized insurance product aimed at protecting businesses from financial losses that arise due to disruptions at ports, which can affect the shipping and receiving of goods. For instance, in October 2024, Marsh LLC, a US-based insurance provider, partnered with Tokio Marine Kiln Group Ltd, a UK-based insurance company, to launch a port disruption insurance product. This insurance safeguards against various risks that may cause port disruptions, such as natural disasters, strikes, and other unforeseen events impacting cargo handling and shipping operations. The policy is designed to cover losses incurred from business interruptions caused by port closures or delays, including coverage for lost revenue during periods when vessels are unable to load or unload cargo as scheduled.

In November 2022, Ambac Financial Group, Inc., a US-based insurance company, acquired All Trans Risk Solutions and Capacity Marine Corporation for an undisclosed sum. This acquisition is expected to bolster Capacity Marine's capabilities to address challenges in the insurance and reinsurance sectors. All Trans Risk Solutions, based in the US, operates in the transportation insurance industry, while Capacity Marine Corporation, also based in the US, specializes in wholesale/retail brokerage and reinsurance intermediary services, focusing on marine and international risk.

Major companies operating in the marine insurance market include Berkshire Hathaway Specialty Insurance, Axa S.A., American International Group Inc., Tokio Marine Holdings Inc., Swiss Reinsurance Company Ltd., Chubb Limited, Zurich Insurance Group, Sompo International Holdings Ltd, The Travelers Indemnity Company, Fairfax Financial Holdings Limited, The Hartford Financial Services Group Inc., Intact Financial Corporation, Everest Reinsurance Group Ltd., Aon plc, Arch Capital Group Ltd., HDI Global SE, Markel Corporation, Arthur J. Gallagher & Co, American Financial Group Inc., The Hanover Insurance Group Inc., AXIS Capital Holdings Limited, RenaissanceRe Holdings Ltd., Aspen Insurance Holdings Limited, ProSight Global Inc., Allianz SE, Bermudan Insurance Holding Company Ltd., Validus Holdings Inc., Argo Group International Holdings Ltd.

Europe was the largest region in the marine insurance market in 2024. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the marine insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the marine insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Marine insurance is a type of insurance policy that provides coverage to cargo owners and cargo for any loss or damage resulting from ship accidents or voyage delays. This insurance covers the loss or damage of cargo or goods during transportation.

In marine insurance, the main types are cargo insurance, hull and machinery insurance, marine liability insurance, and offshore/energy insurance. Cargo insurance protects shipments from physical damage or theft while in transit, covering loss, damage, or theft. Policy types include time, voyage, floating, valued, and others, with distribution through wholesalers, retail brokers, and others. End users include ship owners, traders, and others.

The marine insurance market research report is one of a series of new reports that provides marine insurance market statistics, including marine insurance industry global market size, regional shares, competitors with a marine insurance market share, detailed marine insurance market segments, market trends and opportunities, and any further data you may need to thrive in the marine insurance industry. This marine insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The marine insurance market includes revenues earned by entities by protection & indemnity (P&I) insurance, freight, demurrage and defense (FD&D) insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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