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The marine insurance market size is forecast to increase by USD 5.41 billion at a CAGR of 3.32% between 2023 and 2028. The market is experiencing growth due to several key factors. The use of multiple distribution channels has broadened product accessibility and reach, enhancing market penetration. Additionally, there is a significant increase in premium contributions from emerging markets, driven by rising consumer incomes and evolving preferences. Improvements in industry regulations have also played a crucial role, ensuring higher standards of quality and safety, thereby boosting consumer confidence. These combined elements are fostering a favorable environment for market expansion, as companies leverage diverse distribution strategies, capitalize on emerging market opportunities, and adhere to stringent regulatory frameworks to drive sustained growth.
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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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The cargo segment was the largest segment and was valued at USD 15.14 billion in 2018. 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.
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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.
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.
Moreover, 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.
Increasing demand for business travel is a key driver shaping the growth. 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. Such factors will increase the market growth during the forecast period.
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 demand and low product differentiation, has created an intense market that has continued since 2019.
Moreover, the 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.
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 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
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
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 SE - The company offers a wide portfolio of marine insurance products. They offer 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:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Property and Casualty Insurance Market: Property and Casualty Insurance Market by Distribution Channel, Product Type, and Geography - Forecast and Analysis
Specialty Insurance Market: Specialty Insurance Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Japan, Germany, France - Size and Forecast
The market is integral to ensuring efficiency and safety in marine shipping and commercial transportation. Advanced relay systems are critical in mitigating risks associated with ship accidents, including loss or damage, collisions, overturning, and explosions. Hull and machinery insurance and marine liability insurance provide financial protection against such incidents. Insurtech innovations like predictive modeling and machine learning enhance risk management services, ensuring regulatory compliance and reducing cybersecurity concerns for unmanned vessels and autonomous vessels.
Moreover, green shipping initiatives are gaining traction to address climate change, with relays optimizing engine performance and supporting climate risk mitigation. Marine shipping faces threats from piracy, theft, malicious damage, and hijackings, which are addressed through specialty insurance plans and maritime security concerns. The market also supports economic dynamics and trade dynamics through cross border transportation and export activities. End consumers and e-commerce companies benefit from improved claim processing and transit security. As natural disasters and regulatory requirements evolve, the demand for robust relay solutions and marine shipping insurance will continue to grow, driving emerging opportunities in the industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.32% |
Market growth 2024-2028 |
USD 5.41 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
3.07 |
Regional analysis |
Europe, APAC, South America, Middle East and Africa, and North America |
Performing market contribution |
Europe at 51% |
Key countries |
UK, Germany, China, France, and Singapore |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allianz SE, American International Group Inc., Aon plc, Arthur J. Gallagher and Co., Atrium Underwriters Ltd., AXA Group, Beazley Plc, Chubb Ltd., Hannover Re, Munich Reinsurance Co., Samsung Fire and 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, inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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