Marine Insurance Market Analysis Europe,APAC,South America,Middle East and Africa,North America - China,Singapore,UK,Germany,France - Size and Forecast 2023-2027

Marine Insurance Market Forecast 2023-2027

The marine insurance market size is estimated to grow at a CAGR of 3.16% and the size of the market is forecast to increase by USD 4.99 billion between 2022 and 2027. These policies protect against any damage/losses caused to any cargo vessel, ships, and terminals, in which the goods are transported from one end to another in business. The growth of the market depends on several factors, including the use of multiple distribution channels, an increase in premium contribution from emerging markets, and improvements in industry regulations. The economic slowdown due to the outbreak of COVID-19, especially in key markets in China, Brazil, Argentina, and parts of Europe, has affected the cargo volumes and, consequently, marine cargo insurers, as less cargo will also lead to less insurance. China is one of the largest markets for cargo insurers, which has been largely affected by the slowdown of the economy. However, trade volumes rebounded post-2020 due to vaccination drives.

What will be the size of the Marine Insurance Market During the Forecast Period?

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In 2017, in terms of market size, Europe dominated the market with a share of USD 11.87 billion. Additionally, UK was the largest contributor of market share USD 3.12 billion. The market segment cargo recorded the largest contribution in market share of USD 14.74 billion and continued to grow.

Market Segmentation

This report extensively covers market segmentation by product (cargo, hull, offshore energy, and marine liability), end-user (cargo owners, traders, and government), and geography (Europe, APAC, South America, Middle East and Africa, and North America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Product

The market share growth by the cargo segment will be significant during the forecast period. In this segment, the movement of commodities by sea is referred to as marine freight. On a per-ton-kilometre basis, shipping is frequently seen as an efficient mode of delivering products. For sea transportation, several vessels are utilized. Dry-cargo ships, for example, transport substantial dry items such as steel and metal ores.

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In this segment, the vessels carry cargo such as raw materials and finished goods from one port to another. The length of these vessels ranges from 80 m to 160 m. Cargo vessels can handle both containerized and bulk products. Depending on the type of trade, general cargo vessels can vary from slender project cargo vessels that travel at a moderate speed to extremely large block vessels that travel at a slow speed and carry large load capacities. These factors will facilitate market growth during the forecast period.

By Region

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Europe is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. 

The fact that the European Central Bank (ECB) introduced measures to boost credit growth (such as lowering interest rates) has increased the pressure on insurance companies to reconcile investment guarantees with low yields. Market competition is further accentuated by the continued rise of aggregator websites that allow customers to compare houses, travel, auto, and policies. Moreover, the lower margins and increased regulatory pressures (such as the ban on pricing deals between insurers and price comparison websites by the Competition and Markets Authority) have prompted insurers to shift to asset-backed securities on the investment front and risk-based products on the liabilities side. However, the emergence of new business models, such as telematics, may create new insurance products in the market.

Market Dynamics and Customer Landscape

The market is driven by various factors that shape its trajectory and growth. Restrictions on national and international travel, such as those imposed during pandemics or geopolitical tensions, underscore the importance of marine insurance in mitigating risks associated with cargo transportation. Additionally, the globalization of businesses necessitates robust insurance coverage for business travel-related risks, including cargo transportation, thereby fueling the demand for marine insurance services. Moreover, the expansion of global trade activities and the emergence of domestic and localized market players further contribute to the growth of the marine insurance sector, as insurers adapt to address unique risks associated with different regions and market dynamics.

Technological advancements and regulatory changes in the maritime industry play a significant role in driving innovation and shaping the marine insurance landscape. Climate tech innovations and the increasing frequency of extreme weather events highlight the need for specialized products to cover potential losses and damages. Furthermore, disruptions in air travel, such as flight cancellations, drive the diversion of cargo transportation to maritime routes, thereby increasing the demand for marine insurance coverage. As insurers focus on risk monitoring and strategic market growth analysis, they continuously evolve their offerings to meet the dynamic needs of maritime stakeholders and navigate the ever-changing landscape of the market.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The market is propelled by various market drivers that shape its growth trajectory. Restrictions on national and international travel, whether due to pandemics or geopolitical tensions, underscore the importance of comprehensive coverage for cargo and vessels. Furthermore, the demand for business travel insurance has surged, emphasizing the need for tailored policies to safeguard cargo owners and ship owners during their travels. Evolving market regulations also play a significant role, prompting insurers to innovate and offer compliant coverage solutions, thereby driving market expansion. Economic factors such as consumer spending and global trade growth further contribute to the demand, as increased economic activity necessitates robust coverage to mitigate transportation risks. Additionally, recent developments in technology, such as digitization and analytics, are enhancing operational efficiency and customer experience, further fueling the market's growth.

Moreover, the dynamics of marine insurance are influenced by factors such as flight cancellations, which can lead to a shift in transportation modes and an increased reliance on marine transportation. As global trade continues to expand, domestic and localized market players are venturing into international markets, creating opportunities for insurers to provide comprehensive coverage solutions. These developments underscore the importance of risk monitoring and strategic market growth analysis to capitalize on emerging revenue pockets. Additionally, recent advancements in technology, such as artificial intelligence and automation, are revolutionizing the sector, optimizing claims processing and enhancing operational efficiency. Overall, the Market is poised for significant growth driven by a combination of regulatory changes, technological innovations, and evolving consumer trends.

Significant Market Trends

The increase in M&A and collaborations for industry growth is a primary trend in the global market. The increase in the number of providers and some other factors such as moderate industry growth and low product differentiation has created an intense market that has continued since 2019.

Major players are focusing on acquiring smaller vendors in the market to increase their sales in the market globally. Such agreements strengthen the capacity and global reach of these providers. Thus, the increase in the number of M&A and partnerships is expected to support the growth of the global market during the forecast period.

Major Market Challenge

Low profitability for the suppliers is a major challenge to the growth of the market. Strong demand opportunities in emerging markets have attracted a number of domestic and international suppliers, increasing competition in the market. While regions such as APAC have high total fee income, supplier profitability in the region is low. This may be due to the decrease in insurance premiums, which supports the increasing competition in the market. Such anti-competitive practices are likely to eventually affect the growth of the industry.

Furthermore, due to weak demand for existing policies and new policies, mainly from Europe, corporate overheads are increasing faster than  GWP, ultimately reducing profit margins. This will hinder the growth of the market during the forecast period

Key Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Marine Insurance Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the marine cargo insurance marine cargo insurance market.

Allianz - The company offers a wide portfolio of marine insurance products The company offers a broad portfolio of highly customizable products and innovative marine solutions such as cargo insurance, inland marine, marine hull and liability, project cargo and marine liability 

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• American International Group Inc.
• Aon Plc
• Arthur J. Gallagher & Co.
• Atrium Underwriters Ltd.
• AXA Group
• Beazley Plc
• Chubb Ltd.
• Hannover Re
• Munich Reinsurance Co.
• Samsung Fire & Marine Insurance Co. Ltd.
• Sompo Holdings Inc.
• Swiss Re Ltd.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Cargo
  • Hull
  • Offshore energy
  • Marine liability

• End-user Outlook
  • Cargo owners
  • Traders
  • Government

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market, influenced by global trade and climate tech, witnesses significant changes due to automation and AI integration. Fluctuations in consumer spending and lifestyle shifts impact claims processing and insurtech advancements. Regulatory changes and bans on travel affect global marine insurance premiums and claims processing, especially with incidents like flight cancellations. Strategic market growth analysis focuses on emerging revenue pockets and niche applications. With investments surging in cybersecurity and fintech, the market adapts to advancements like IoT in risk monitoring. Proximate cause and insurable interest remain fundamental principles, ensuring value chain optimization and utmost good faith among policyholders and insurers.

Moreover, the market undergoes dynamic shifts driven by global trade and mobility trends. With the rise of the e-commerce sector and changes in market regulations, insurers adapt to cater to evolving needs. Impactful factors such as IoT integration and corporate venture capital investments enhance risk management and innovation. From the surge in investments to the ban on travel, recent developments shape insurance claims and regulations. Subrogation and product approvals ensure faith and compliance within the value chain. As mobility and urbanization continue, marine insurance remains pivotal in safeguarding businesses against incidences of losses and ensuring cargo protection across global transport routes.

Additionally, the market navigates challenges and opportunities amidst changes in regulations and the surge in investments. With a focus on ship owners and cargo vessels, insurers adapt to cater to loss or damage of cargo. The impact of IoT and artificial intelligence enhances risk monitoring and claims processing. Corporate venture capital fuels innovation, while restrictions on travel drive demand for business travel insurance. Analysis of production and consumption patterns aids in strategic growth, ensuring value chain optimization and resilience in maritime insurance operations.

The global marine insurance market, despite facing restraints due to a surge in investments in terminals and trade regulations, continues to thrive due to several advantages and application niches. However, recent changes in lifestyle and the ban on national and international travel have impacted this sector, prompting a need for adaptation and innovation.

Corporate Venture Capital (CVC) funds are increasingly being directed toward the marine insurance market, recognizing its potential and significance. With healthcare becoming a focal point globally, the industry must adapt to address emerging risks and opportunities, leveraging technologies such as the Internet of Things (IoT) for enhanced efficiency and effectiveness. The impact of domestic and localized market players cannot be understated, as they contribute to the vibrancy and competitiveness of the marine insurance landscape. Import-export analysis reveals shifting trends and demands, influencing production and consumption patterns.

The pestle analysis provides insights into the macro-environmental factors affecting the market, guiding strategic decision-making. Points of origin and final destinations play crucial roles in assessing risks and determining premiums in marine insurance. Production analysis and production-consumption analysis aid in understanding supply chain dynamics and optimizing operational efficiency. Despite the challenges posed by restraints and regulatory changes, the global marine insurance market remains resilient, poised for adaptation and growth in the face of evolving market dynamics.

Marine Insurance Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.16%
Market growth 2023-2027	USD 4.99 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	2.97
Regional analysis	Europe, APAC, South America, Middle East and Africa, and North America
Performing market contribution	Europe at 51%
Key countries	China, Singapore, UK, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Allianz SE, American International Group Inc., Aon Plc, Arthur J. Gallagher & Co., Atrium Underwriters Ltd., AXA Group, Beazley Plc, Chubb Ltd., Hannover Re, Munich Reinsurance Co., Samsung Fire & Marine Insurance Co. Ltd., Sompo Holdings Inc., Swiss Re Ltd., Thomas Miller and Co. Ltd., Tokio Marine Holdings Inc., United India Insurance Co. Ltd., and Zurich Insurance Co. Ltd.
Market dynamics	Parent market analysis, Market forecasting,  Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Marine Insurance Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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