The global cargo insurance market is anticipated to reach $105.97 billion by 2032, growing from $71.41 billion in 2022 at a CAGR of 4.1% from 2023 to 2032. Cargo insurance protects the insured against physical loss or damage to cargo while it is being transported. In addition, there are different types of cargo insurances available, including those for aviation, marine, and land transportation. Comprehensive protection is offered by cargo insurance against loss or damage brought on by various factors such as natural calamities, theft, and other factors. The cargo insurance coverage include various policies that offers insurance coverage against cargo renunciation, vehicle accidents, natural calamities such as piracy, war, and others. Cargo insurance is prerequisite for businesses that ship cargo frequently.
The rising popularity of marine cargo insurance owing to an increase in the volume of international shipments through sea routes is anticipated to drive the cargo insurance market share in the upcoming years. The cargo insurance for the goods transported via sea routes offers coverage on the damages caused due to bad weather conditions, piracies, loading & unloading of cargo, and others. For instance, in single coverage policies of marine cargo insurance, the coverage is offered on single shipment basis that can be beneficial for the small business owners. Also, for the companies that ship the cargos through shipping lines of airlines can opt for open coverage policy if they have more than one shipment. In addition, the cargo insurance providers can collaborate with insurance companies that can bring innovative technologies such as machine learning, artificial intelligence, and others to streamline the insurance claim submission process. Collaborating with insurtech companies can help the cargo insurance providers in enhancing their service offerings with unique value propositions, exploring alternative distribution channels, and diversifying their product portfolio. All these factors are anticipated to drive the cargo insurance industry growth in the upcoming years.
Some limitations associated with cargo insurance such as claims will not be paid in case of personal interference and high cost of marine insurance are estimated to restrain the market growth. In addition, damage caused to the goods due to poor packaging or flawed products is not covered under cargo insurance. Also, some cargo insurance companies do not cover insurance of any hazardous cargo or expensive and delicate things such as electronic devices which is anticipated to hamper the market growth during the forecast period.
Intense competition among insurance providers encourages innovation and the development of new cargo insurance products. Insurers strive to differentiate themselves by offering tailored coverage, value-added services, and efficient claims processing, which positively impact the cargo insurance market. IoT technology is continuously being incorporated by significant market players into their current marine insurance product lines to improve their offerings. This system facilitates the processing of claims, assists in loss forecasting, and monitors preclusion losses. This immediately expedites streamlined support for maritime insurance. Therefore, it is anticipated that the adoption of IoT in marine insurance by a large number of industry players will boost market growth during the forecast period.
The market for cargo insurance has seen a marginally negative effect as a result of the COVID-19 pandemic. The demand for cargo insurance decreased due to the pandemic-related slowdown in global trade and supply chain disruptions. Due to a significant decrease in the amount of goods being transported, shipment delays, and cancellations, the pandemic disrupted the global supply chains. The need for cargo insurance was decreased during the pandemic as fewer goods were transported. The pandemic also forced many businesses to scale back operations or even temporarily cease operations, which decreased the demand for cargo insurance. The COVID-19 pandemic significantly reduced commercial and maritime activities.
The key players profiled in this report include Allianz, AXA, Aon PLC, American International Group Inc, Arthur J. Gallagher & Co., Chubb, Lloyd's, Marsh LLC, Zurich Insurance Group Ltd, and Lockton Companies. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
The rising popularity of marine cargo insurance owing to an increase in the volume of international shipments through sea routes is anticipated to drive the cargo insurance market share in the upcoming years. The cargo insurance for the goods transported via sea routes offers coverage on the damages caused due to bad weather conditions, piracies, loading & unloading of cargo, and others. For instance, in single coverage policies of marine cargo insurance, the coverage is offered on single shipment basis that can be beneficial for the small business owners. Also, for the companies that ship the cargos through shipping lines of airlines can opt for open coverage policy if they have more than one shipment. In addition, the cargo insurance providers can collaborate with insurance companies that can bring innovative technologies such as machine learning, artificial intelligence, and others to streamline the insurance claim submission process. Collaborating with insurtech companies can help the cargo insurance providers in enhancing their service offerings with unique value propositions, exploring alternative distribution channels, and diversifying their product portfolio. All these factors are anticipated to drive the cargo insurance industry growth in the upcoming years.
Some limitations associated with cargo insurance such as claims will not be paid in case of personal interference and high cost of marine insurance are estimated to restrain the market growth. In addition, damage caused to the goods due to poor packaging or flawed products is not covered under cargo insurance. Also, some cargo insurance companies do not cover insurance of any hazardous cargo or expensive and delicate things such as electronic devices which is anticipated to hamper the market growth during the forecast period.
Intense competition among insurance providers encourages innovation and the development of new cargo insurance products. Insurers strive to differentiate themselves by offering tailored coverage, value-added services, and efficient claims processing, which positively impact the cargo insurance market. IoT technology is continuously being incorporated by significant market players into their current marine insurance product lines to improve their offerings. This system facilitates the processing of claims, assists in loss forecasting, and monitors preclusion losses. This immediately expedites streamlined support for maritime insurance. Therefore, it is anticipated that the adoption of IoT in marine insurance by a large number of industry players will boost market growth during the forecast period.
The market for cargo insurance has seen a marginally negative effect as a result of the COVID-19 pandemic. The demand for cargo insurance decreased due to the pandemic-related slowdown in global trade and supply chain disruptions. Due to a significant decrease in the amount of goods being transported, shipment delays, and cancellations, the pandemic disrupted the global supply chains. The need for cargo insurance was decreased during the pandemic as fewer goods were transported. The pandemic also forced many businesses to scale back operations or even temporarily cease operations, which decreased the demand for cargo insurance. The COVID-19 pandemic significantly reduced commercial and maritime activities.
The key players profiled in this report include Allianz, AXA, Aon PLC, American International Group Inc, Arthur J. Gallagher & Co., Chubb, Lloyd's, Marsh LLC, Zurich Insurance Group Ltd, and Lockton Companies. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cargo insurance market analysis from 2022 to 2032 to identify the prevailing cargo insurance market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the cargo insurance market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global cargo insurance market trends, key players, market segments, application areas, and market growth strategies.
Additional benefits you will get with this purchase are:
- Quarterly update (only available with the purchase of an enterprise license)
- 5 additional company profiles of your choice, pre- or post-purchase, as a free update.
- Free updated version (once released) with the purchase of a 1-5 or enterprise user license.
- 16 analyst hours of support (post-purchase, if you find additional data requirements upon review of the report, you may receive support amounting to 16 analyst hours to solve questions, and post-sale queries)
- 15% free customization (in case the scope or segment of the report does not match your requirements, 20% is equivalent to 3 working days of free work, applicable once)
- Free data pack (Excel version) with the purchase of a 1-5 or enterprise user license.
- Free report update, if the report is 6-12 months old or older.
- 24-hour priority response
- Free industry updates and white papers.
Key Market Segments
By End User
- Traders
- Cargo Owners
- Ship Owners
- Others
By Insurance Type
- Air Cargo
- Land Cargo
- Marine Cargo
By Distribution Channel
- Direct Sales
- Indirect Sales
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Singapore
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- United Arab Emirates
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Allianz SE
- American International Group, Inc.
- Aon plc.
- Arthur J. Gallagher & Co.
- AXA
- Chubb
- Lloyd’s
- Lockton Companies, LLC
- MARSH LLC.
- Zurich Insurance Group Ltd
Please note:
- Online Access price format is valid for 60 days access. Printing is not enabled.
- PDF Single and Enterprise price formats enable printing.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CARGO INSURANCE MARKET, BY INSURANCE TYPE
CHAPTER 5: CARGO INSURANCE MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: CARGO INSURANCE MARKET, BY END USER
CHAPTER 7: CARGO INSURANCE MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the cargo insurance market was valued at $71.4 billion in 2022, and is estimated to reach $106 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032. Cargo insurance can be purchased for goods during shipment to help mitigate risks associated with shipping processes while also securing shipment of the goods. Cargo insurance protects businesses and carriers from financial losses caused by cargo damage or loss. Transporting goods safely and securely can be challenging, especially if they are fragile. In these situations, cargo insurance is crucial because it protects against financial losses by paying the actual value of the shipment in the unlikely event that it is damaged or lost.The cargo insurance market refers to the insurance coverage for goods or cargo being transported by various modes of transportation, such as ships, airplanes, trucks, or trains. Cargo insurance is designed to protect the goods against loss or damage that may occur during transit. The cargo insurance market includes insurance companies, brokers, and agents who specialize in providing coverage for cargo shipments. Major insurance companies offer cargo insurance as part of their marine insurance offerings. Businesses are implementing insurance policies to lower the risk of importing and exporting owing to the rapid expansion of marine transportation for international trade. This insurance also provides several other advantages to industries, businesses, and individuals. Various cargo transportation insurance policies covering domestic, regional, and international transport have been recently developed.
However, some policies have intricate exclusion clauses that frequently imply incomplete coverage. Furthermore, improper understanding of cargo insurance can prevent its adoption and somewhat impede the market revenue growth. The implementation of these policies may be hampered by the inability to resolve claims due to a lack of understanding or protracted disputes. In addition, losses brought on by cargo delays are not covered by cargo insurance, and not all insurance policies provide coverage for unforeseeable events like war, strikes, or riots, among others. These are some important factors that are projected to limit market expansion in the upcoming years.
Investments are protected by cargo insurance, which also covers goods for loss, damage, or delays. The cost of the insurance is based on how much risk there is in transporting the goods. Major insurance providers have teamed up with risk managers and brokers to create specialized and affordable cargo insurance coverage in response to rising instances of cargo theft and vessel damage as a result of unfavorable climatic conditions. The rising popularity of insurtech solutions that leverages the use of advanced technologies such as blockchain, data analytics, Internet of Things (IoT) is streamlining the process of claims, risk assessment, and offers real-time tracking of cargo which is gaining huge popularity. Without financial protection, the businesses need to bear the entire financial burden for the damage caused to the goods during transit. Cargo insurance helps in mitigating the risks by ensuring smooth flow of goods and offering protection to the high-value cargos. It is anticipated that improvements in in-transit cargo modelling and advances in shipping technology will open up new opportunities for insurers to invest in extending the coverage of their policies, which will have a significant impact on the market revenue growth. With increasing digitalization and reliance on technology in the cargo industry, cybersecurity and data protection have become critical concerns.
The cargo insurance market share is segmented on the basis of insurance type, distribution channel, end user, and region. By insurance type, it is classified into air cargo, land cargo, and marine cargo. By distribution channel, it is classified into direct sales and indirect sales. By end user, it is classified into traders, cargo owners, ship owners, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the cargo insurance market report include Allianz, AXA, Aon PLC, American International Group Inc, Arthur J. Gallagher & Co., Chubb, Lloyd's, Marsh LLC, Zurich Insurance Group Ltd, and Lockton Companies.
The report offers a comprehensive analysis of the global cargo insurance market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.
Impact of COVID-19 on the Global Cargo Insurance Industry
The COVID-19 pandemic resulted in shifts in cargo types and shipping patterns. Some industries, such as automotive and aerospace, experienced a decline in demand, while others, like e-commerce and healthcare, witnessed an increase. These shifts and changes in cargo volumes and transportation modes created uncertainties and challenges for cargo insurance providers in assessing and pricing risks accurately.The pandemic led to a significant decline in global trade and economic activity as businesses scaled back operations and consumer demand weakened. Reduced trade volumes directly impacted the need for cargo insurance, as fewer goods were being shipped across borders.
The COVID-19 pandemic resulted in a higher number of insurance claims and increased loss ratios in the cargo insurance sector. Cargo shipments faced delays, damage, or loss due to lockdowns, reduced staffing, and operational challenges. The increased claims activity and potentially higher claim payouts posed pressure on the profitability of cargo insurance providers.
Key Findings of the Study
Based on insurance type, the land cargo sub-segment emerged as the global leader in 2022 and the marine cargo sub-segment is anticipated to be the fastest growing during the forecast period.Based on distribution channel, the direct sales sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
Based on end user, the cargo owners sub-segment emerged as the global leader in 2022 and the traders sub-segment is predicted to show the fastest growth in the upcoming years.
Based on region, Europe registered the highest market share in 2022 and is projected to maintain its position during the forecast period.
Companies Mentioned
- Allianz SE
- American International Group, Inc.
- Aon plc.
- Arthur J. Gallagher & Co.
- AXA
- Chubb
- Lloyd’s
- Lockton Companies, LLC
- MARSH LLC.
- Zurich Insurance Group Ltd
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
LOADING...
