Global Marine Insurance Market 2023-2030

Global Marine Insurance Market 2023-2030

Global marine insurance market is anticipated to grow at a considerable CAGR of 3.8% during the forecast period. The key factor supporting the marine market’s growth is the advantages it provides to marine traders, cargo owners, and other exporters and importers. For instance, a marine insurance policy covers financial losses and damages to cargo vessels, ships, and terminals during transit. It is frequently necessary throughout import and export trade processes to fulfill various nations' demanding regulatory compliance. Some insurance companies are now offering plans that cover the risk of theft, intentional damage, shortage, and non-delivery of products. These programs can be tailored to customers' individual business requirements. Besides that, they cover damages caused by fire, explosions, hijacking, accidents, crashes, and overturning. Such factors increase the demand for marine insurance among businesses that are working in or through the marine sector.

Segmental Outlook

The global marine insurance market is segmented by insurance type and end user. Based on insurance type, the market is sub-segmented into marine liability insurance, inland marine insurance, cargo insurance, hull insurance, freight insurance, and import and export insurance. Based on end users, the market is sub-segmented into cargo owners and traders. Among end users, the cargo owners segment is expected to hold a significant share in the market. Cargo owners generally get the highest number of marine insurance policies compared to traders. This is because cargo owners have a direct financial interest in the cargo being transported, and they want to protect themselves against the risk of loss or damage to their goods during transport.

The Cargo Insurance Sub-Segment Holds a Prominent Share in the Global Marine Insurance Market

Based on insurance type, the market is sub-segmented into marine liability insurance, inland marine insurance, cargo insurance, hull insurance, freight insurance, and import and export insurance. Among these, the cargo insurance segment is expected to hold the highest market share. Cargo insurance protects goods while they are in transit, providing coverage against losses due to damage, theft, or other perils. With the rise in global trade and the increasing movement of goods across borders, cargo insurance has become an essential component of trade finance. As international trade continues to grow, the demand for cargo insurance also increases. For instance, according to a report published by the International Union of Marine Insurance in 2022, premiums in the cargo market for 2021 grew to $18.9 billion, owing to higher global trade volumes. In addition, the claims impact in this industry was very mild in 2021, and loss ratios in most areas improved.

Regional Outlook

The global marine insurance market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the Asia-Pacific region is anticipated to generate the prominent market share, , owing to the large number of ship owners, ocean traders, and insurance policies. For instance, according to a UNCTAD report published in 2022, Asia remained the world’s leading maritime cargo handling center in 2021, accounting for 42% of goods loaded.

The European Region is Expected to Dominate the Global Marine Insurance Market

One of the main drivers of growth is the continued growth of international trade and shipping in the region. Europe is home to some of the world's busiest and most important ports, including Rotterdam, Hamburg, and Antwerp, and it has a long history of trade and commerce with other regions around the world. Besides, the European region has several marine insurance companies that support its market’s growth, such as MSIG Insurance Europe AG, Allianz, Nordic Marine Insurance, and others. The region also has the highest number of marine insurance premiums collected. For instance, according to the International Union of Marine Insurance (IUMI) report in 2021, IUMI collected $30 billion in global marine insurance premiums for the 2020 fiscal year, with Europe remaining the leading underwriting market with a 47.7% share. Another factor contributing to the growth of the European marine insurance market is the region's strong regulatory environment and established legal framework for marine insurance. The European Union (EU) has implemented various regulations and directives related to marine insurance, including the Solvency II Directive, which sets out prudential rules for insurers and reinsurers operating in the EU.

Market Players Outlook

The major companies serving the global marine insurance market include American International Group, Inc., Beazley Group, QBE Insurance Group Ltd., RSA, Allianz Group, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, and investments, to stay competitive in the market. For instance, in December 2022, Beat Capital Partners and Kevin Wolfe collaborated to develop Marcato Marine Insurance Services, a specialty marine underwriting firm. Marcato initially provide services such as project cargo, general cargo, hull, protection and indemnity (P&I), marine excess liability, and marine general liability. It also intends to expand its portfolio to include inland marine items in the latter half of 2023. With the partnership Marcato is able offer project cargo limits of up to $147.5 million (project cargo and DSU combined limit), as well as $20 million for hull/P&I, cargo/warehouse, and marine liabilities (primary and excess).

The Report Covers-

Market value data analysis for 2023 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global marine insurance market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market entry and market expansion strategies.

Competitive strategies by identifying ‘who stands where’ in the market.