Cargo Insurance Market Research Report By Type (Ocean Cargo Insurance, Air Cargo Insurance, Land Cargo Insurance), By Coverage (Single-Trip Insurance, Annual Contract Insurance, Open Cover Insurance), By Industry (Manufacturing, Retail, Transportation, Logistics), By Commodity (High-Value Goods, Bulk Cargo, Perishable Goods, Hazardous Cargo), By Scale (Small and Medium Enterprises (SMEs), Large Enterprises) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Cargo Insurance Market Overview:

Cargo Insurance Market Size was estimated at 71.4 (USD Billion) in 2022. The Cargo Insurance Market Industry is expected to grow from 73.6(USD Billion) in 2023 to 101.5 (USD Billion) by 2032. The Cargo Insurance Market CAGR (growth rate) is expected to be around 4.1%% during the forecast period (2024 - 2032).

Key Cargo Insurance Market Trends Highlighted

The Cargo Insurance Market is influenced by some key drivers, which include an increasing volume of global trade, growing awareness of risk management among shippers, and stringent governmental regulations. International trade has experienced significant growth owing to globalization as well as e-commerce, hence necessitating reliable and comprehensive cargo insurance solutions.

Growth opportunities for insurers lie in developing products customized for particular industries and expanding into emerging markets. Other developments encompass exploring blockchain and IoT technologies aimed at improving risk evaluation processes while enhancing claims settlement.

Some recent trends within the cargo insurance industry have included the adoption of digital platforms to ease policy issuance and claims management as well as Value-Added Services (VAS) such as risk consulting assistance in supply chain management, among others that enable the sector players to differentiate themselves from rivals and adapt towards changes occurring among their clients.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cargo Insurance Market Drivers

Economic Growth and Globalization

The growth of the global economy and the increasing interconnectedness of countries have led to a rise in international trade, which in turn has driven demand for cargo insurance. As businesses expand their operations across borders, they need to protect their goods against potential risks during transportation. Moreover, the globalization of supply chains and the increasing complexity of logistics networks have made it more challenging to manage risk, further fueling the demand for cargo insurance. The World Trade Organization (WTO) estimates that global merchandise trade reached a record high of $28.5 trillion in 2022, and it is projected to continue to grow in the coming years. This growth is particularly evident in emerging markets, where rapid economic expansion is driving demand for imported goods and services. As a result, the Cargo Insurance Market Industry is expected to benefit from the increasing volume of international trade as businesses seek to protect their goods against potential risks and uncertainties during transportation.

Advancements in Technology and Innovation

Advancements in technology and innovation are transforming the Cargo Insurance Market Industry. The adoption of digital platforms and data analytics has enabled insurers to improve risk assessment, underwriting, and claims handling processes. For instance, the use of telematics devices and sensors allows insurers to track the location and condition of cargo in real time, providing valuable insights into potential risks and enabling more accurate pricing.

Increasing Awareness of Risk Management

Nowadays, an increasing number of companies see the significance of risk management and the types of cargo insurance that help to protect their financial interests. Due to the growing number and the severity of natural disasters, political risks, and transportation problems, businesses are forced to ensure they have the necessary insurance that can protect their interests.

Cargo Insurance Market Segment Insights:

Cargo Insurance Market Type Insights

The Cargo Insurance Market is classified by Type, with Cargo Type being one of the crucial segments, which is further subdivided into Ocean Cargo Insurance, Air Cargo Insurance, and Land Cargo Insurance. Ocean Cargo Insurance is the leading segment, generating over 60% of revenue of the overall market. The volume of goods that are transferred through ocean freight is very high. Additionally, the development of e-commerce, as well as the growth of demand for imported goods, fosters growth in this segment. The second segment, Air Cargo Insurance, is responsible for about 25% of the Cargo Insurance Market revenue. The increasing demand for air freight service determines its growth. The demand for these services is especially high in the sphere of transporting valuable and time-sensitive goods.

The proportion of the final segment, Land Cargo Insurance, is about 15%. The demand for road goods traffic is increasing, and this percentage is likely to remain stable. The benefits and coverage of Cargo Insurances are different. Ocean Cargo Insurance covers goods that are transported by sea, securing the risk of loss, damage, or theft. Air Cargo Insurance obviously insures the goods that are transferred by air, covering exposure to loss, damage, or delay. Land Cargo Insurance covers the vehicles that transport goods by land, securing, respectively, loss, damage, or theft. The Cargo Insurance Market is expected to increase with a CAGR of about 4% in the next 5 years. The increasing demand for the cargo transportation services determines the market’s growth, especially in developing countries. E-commerce’s development and the overall rise in the process of imported goods will affect the growth of the Cargo Insurance Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cargo Insurance Market Coverage Insights

The Cargo Insurance Market segmentation by Coverage comprises Single-Trip Insurance, Annual Contract Insurance, and Open Cover Insurance. Single-Trip Insurance caters to specific shipments, offering coverage for a single journey. Annual Contract Insurance provides comprehensive protection for multiple shipments over a year, with premiums based on the value and frequency of shipments. Open Cover Insurance offers continuous coverage for all shipments within a specified limit, providing flexibility and convenience for businesses with varying shipping volumes.In 2024, the Single-Trip Insurance segment held a significant market share, generating revenue of 10.29 billion USD. Annual Contract Insurance is projected to grow at a CAGR of 4.2% over the forecast period, driven by the need for long-term protection in volatile shipping environments. Open Cover Insurance is expected to witness steady growth, with increasing adoption by businesses seeking streamlined insurance solutions.

Cargo Insurance Market Industry Insights

The Cargo Insurance Market is segmented into various industries, including manufacturing, retail, transportation, and logistics. Each industry has unique cargo insurance needs and requirements. Manufacturing: The manufacturing industry is a major consumer of cargo insurance, as manufacturers need to protect their valuable inventory and equipment during transportation. The Cargo Insurance Market for the manufacturing industry is expected to reach USD 5.2 billion by 2024, growing at a CAGR of 3.5%. This growth is driven by the increasing demand for manufactured goods and the growing complexity of global supply chains. Retail: The retail industry is another major consumer of cargo insurance, as retailers need to protect their inventory while it is in transit from suppliers to stores. The Cargo Insurance Market for the retail industry is expected to reach USD 4.5 billion by 2024, growing at a CAGR of 3.8%. This growth is driven by the growth of e-commerce and the increasing value of retail inventory. Transportation: The transportation industry is a major provider of cargo insurance, as transportation companies need to protect their customers' goods while they are in transit.

The Cargo Insurance Market for the transportation industry is expected to reach USD 3.8 billion by 2024, growing at a CAGR of 3.2%. This growth is driven by the increasing volume of goods being transported and the growing complexity of global supply chains. Logistics: The logistics industry is a major user of cargo insurance, as logistics companies need to protect their customers' goods while they are in storage and transit. The Cargo Insurance Market for the logistics industry is expected to reach USD 3.2 billion by 2024, growing at a CAGR of 3.0%. This growth is driven by the increasing demand for outsourced logistics services and the growing complexity of global supply chains.

Cargo Insurance Market Commodity Insights

The Cargo Insurance Market is segmented by commodity into High-Value Goods, Bulk Cargo, Perishable Goods, and Hazardous Cargo. High-Value Goods: High-value goods are those that are of high intrinsic value, such as jewelry, electronics, and artwork. The high value of these goods makes them attractive targets for theft and damage, so cargo insurance is essential to protect their value. The Cargo Insurance Market for high-value goods is expected to grow at a CAGR of 4.2% from 2024 to 2030, reaching a market size of USD 6.1 billion by 2030.Bulk Cargo: Bulk Cargo is transported in large quantities, such as grain, coal, and iron ore. The Cargo Insurance Market for bulk cargo is expected to grow at a CAGR of 3.8% from 2024 to 2030, reaching a market size of USD 4.8 billion by 2030. Perishable Goods: Perishable goods are those that have a limited shelf life, such as food and flowers. The Cargo Insurance Market for perishable goods is expected to grow at a CAGR of 4.1% from 2024 to 2030, reaching a market size of USD 3.9 billion by 2030. Hazardous Cargo: Hazardous cargo is any cargo that poses a risk to health, safety, or the environment, such as chemicals, explosives, and radioactive materials. The Cargo Insurance Market for hazardous cargo is expected to grow at a CAGR of 4.0% from 2024 to 2030, reaching a market size of USD 3.6 billion by 2030. The growth of the Cargo Insurance Market is being driven by a number of factors, including the increasing volume of global trade, the rising value of goods being shipped, and the increasing complexity of supply chains.

Cargo Insurance Market Scale Insights

The Cargo Insurance Market is segmented by Scale into Small and Medium Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment held the largest market share in 2023 and is expected to continue to dominate the market during the forecast period. This is due to the fact that large enterprises have a greater need for cargo insurance to protect their valuables. However, the SMEs segment is expected to grow at a faster rate during the forecast period as more and more SMEs are recognizing the importance of cargo insurance. The growth of the market is attributed to the increasing demand for cargo insurance from various industries, such as manufacturing, retail, and healthcare.

Cargo Insurance Market Regional Insights

The regional segmentation of the Cargo Insurance Market offers valuable insights into the market's geographical distribution and growth potential. North America holds a significant market share due to the region's robust trade activities and well-established insurance industry. In 2023, the Cargo Insurance Market revenue in North America was valued at 5.2 billion USD and is projected to reach 6.9 billion USD by 2032, exhibiting a CAGR of 3.2%. Europe is another prominent region in the market, driven by factors such as the presence of major ports and increased international trade. The market in Europe is expected to reach 4.5 billion USD by 2032, growing at a CAGR of 3.5%. The Asia-Pacific region is anticipated to witness substantial growth over the forecast period, primarily attributed to the region's expanding manufacturing and logistics sectors. The Cargo Insurance Market in APAC is projected to reach 8.1 billion USD by 2032, growing at a CAGR of 4.1%. South America and the Middle East Africa (MEA) regions are expected to contribute to the overall market growth, albeit at a slower pace compared to other regions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cargo Insurance Market Key Players And Competitive Insights:

All the major players in the cargo insurance market industry are continuously updating and changing their strategies. The key companies in the sphere of the Cargo Insurance Market are widening their geographic presence, showing new products and services, and creating partnership agreements. The competition in the sphere of Cargo Insurance Market development has a tendency to remain high and extremely competitive in the near future. The leading companies that offer cargo insurance services are working on creating the most optimal value propositions in terms of the frequency and severity of natural disasters, the growing number of goods transferred worldwide, and the complexity of supply chains. Aon plc is among the leading companies in risk management, insurance brokerage, and reinsurance. The company offers its customers a wide variety of cargos insurance products and services. Currently, Aon is one of the global leaders in this sphere, opening its businesses in more than 120 countries. Aon has a unique value proposition offered to its customers, which reflects strong financial results and wide connections with a network of insurers.

Zurich Insurance Group is one leading company offering its customers a wide variety of products related to insurance. Zurich Insurance Group is known as a world-famous international insurer that entered the cargo insurance market and offered its customers a great diversity of cargo insurance products. The company offers all types of cargo insurance, including marine cargo insurance, air cargo insurance, and inland cargo insurance. The company has a wide network of local offices and global claims handlers.

Key Companies in the Cargo Insurance Market Include:

• Allianz


• Zurich Insurance Group


• Generali


• Liberty Mutual


• Munich Re


• Travelers


• AIG


• Swiss Re


• Tokio Marine


• Lloyd's of London


• Chubb


• AXA


• Hannover Re

Cargo Insurance Industry Developments

The Cargo Insurance Market is projected to grow from USD 15.19 billion in 2023 to USD 21.2 billion by 2032, at a CAGR of 3.77% during the forecast period. The growth of the market is attributed to factors such as the increasing volume of global trade, the rising value of goods being transported, and the growing awareness of the importance of cargo insurance. Recent news developments and current affairs in the Cargo Insurance Market include: In 2023, the International Union of Marine Insurance (IUMI) reported a significant increase in cargo insurance claims due to factors such as supply chain disruptions, geopolitical tensions, and extreme weather events. In 2024, several major insurance companies announced plans to invest in digital technologies to improve the efficiency and accuracy of cargo insurance underwriting and claims processing. In 2025, the Cargo Insurance Market is expected to be impacted by the implementation of new regulations, such as the International Maritime Dangerous Goods (IMDG) Code, which aims to enhance the safety of transporting dangerous goods.

Cargo Insurance Market Segmentation Insights

Cargo Insurance Market Type Outlook

Cargo Insurance Market Coverage Outlook

• Single-Trip Insurance


• Annual Contract Insurance


• Open Cover Insurance

Cargo Insurance Market Industry Outlook

• Manufacturing


• Retail


• Transportation


• Logistics

Cargo Insurance Market Commodity Outlook

• High-Value Goods


• Bulk Cargo


• Perishable Goods


• Hazardous Cargo

Cargo Insurance Market Scale Outlook

• Small and Medium Enterprises (SMEs)


• Large Enterprises

Cargo Insurance Market Regional Outlook

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  North America
  
  


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  Europe
  
  


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  South America
  
  


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  Asia Pacific
  
  


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  Middle East and Africa