SAN FRANCISCO, March 28, 2023 /PRNewswire/ — The global logistic insurance market size is expected to reach USD 70.46 billion by 2030, expanding at a CAGR of 2.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. With the surge in e-commerce activities, logistics companies are handling a larger volume of shipments, and this increases the risk of loss or damage. This makes logistics insurance an essential component of risk management, providing coverage against potential financial losses resulting from various incidents that may occur during the transportation of goods.
Key Industry Insights & Findings from the report:
- The cargo insurance segment dominated the market in 2022. The adoption of cargo insurance is increasing owing to the various risk involved in the transportation of goods and cargo including theft, damage, and loss which can result in significant financial losses for logistics companies. According to a study by Verisk Analytics’ CargoNet, in 2022 there was a 15% increase in the number of supply chain risk events, which reached 1,778 across the U.S. and Canada and cargo theft rose by 20%. The total loss value for the year 2022 in U.S. and Canada was USD 223 million.
- The marine segment dominated the market in 2022. Marine transportation plays a crucial role in global trade by moving valuable commodities like oil, gas, and raw materials. Therefore, marine cargo insurance is essential to safeguard the economic interests of stakeholders, including shippers, insurers, and other participants in the supply chain. This highlights the importance of insurance for the marine industry for preventing these losses and has led to the growth of the segment.
- The enterprises segment dominated the market in 2022. The dominance of the segment can be attributed to enterprises’ significant volume of shipments and valuable cargo, which exposes them to higher risks of loss, damage, or theft.
- Europe dominated the market in 2022. Europe has a well-developed logistics infrastructure, including seaports, airports, and rail and road networks. Additionally, Europe has a high concentration of multinational corporations that have extensive supply chains and require comprehensive insurance coverage, creating significant demand for logistics insurance.
Read 110 page market research report, “Logistics Insurance Market Size, Share & Trends Analysis Report By Coverage Type (Cargo Insurance, Marine Services Liability), By Industry (Transportation, Marine), By End User, By Region, And Segment Forecasts, 2023 – 2030“, published by Grand View Research.
Logistics Insurance Market Growth & Trends
The use of digital technologies has favourably impacted the logistics insurance market. Logistics companies have adopted digitalization to facilitate gathering and analyzing data on shipments, which has provided valuable insights into potential risks and trends. This information has enabled logistics insurance companies to develop insurance products and pricing models that are more customized to the actual risks faced by logistics companies, resulting in accurate and effective risk management.
Logistics insurance companies are adopting the latest technologies to improve their service offerings, increase operational efficiency, and enhance customer experience. One of the key technologies that logistics insurance providers are adopting is automation, which involves the use of software to perform repetitive tasks and streamline processes. This includes automated underwriting and claims processing, which reduces the time and resources required to manage insurance policies and claims.
The COVID-19 pandemic had a slightly negative impact on the logistics insurance market. The pandemic has created significant uncertainty for logistics companies and insurers, making it difficult to assess and manage risk. This uncertainty resulted in insurers being more cautious in underwriting new policies, which limited the growth of the market.
Logistics Insurance Market Segmentation
Grand View Research has segmented the global logistics insurance market based on coverage type, industry, end user, and region:
Logistics Insurance Market – Coverage Type Outlook (Revenue, USD Billion, 2017 – 2030)
- Cargo Insurance
- Freight Forwarder Liability Insurance
- Marine Services Liability
- Others
Logistics Insurance Market – Industry Outlook (Revenue, USD Billion, 2017 – 2030)
- Transportation
- Marine
- Aviation
- Others
Logistics Insurance Market – End User Outlook (Revenue, USD Billion, 2017 – 2030)
- Individuals
- Enterprises
Logistics Insurance Market – Regional Outlook (Revenue, USD Billion, 2017 – 2030)
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Asia Pacific
- India
- China
- Japan
- Singapore
- South Korea
- Australia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- Kingdom of Saudi Arabia (KSA)
- UAE
- South Africa
List of Key Players in the Logistics Insurance Market
- American International Group, Inc.
- Allianz
- DB Schenker
- Peoples Insurance Agency
- United Parcel Service of America, Inc.
- AXA SA
- Thomas Miller Group
- Concord
- AsstrA-Associated Traffic AG
- Arch Group
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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