Global Cargo Insurance Services Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

The cargo insurance market is also undergoing significant changes and challenges due to factors such as digitalization, regulation, competition, and sustainability

The Global Cargo Insurance Services Market is estimated to be USD 73.18 Bn in 2023 and is expected to reach USD 91.68 Bn by 2028 growing at a CAGR of 4.61%.

Cargo insurance is a form of insurance policy that protects against cargo loss or damage while the items are in transit. The owner and the cargo are insured against any loss or damage caused by a voyage delay, a ship accident, or unloading. Furthermore, marine insurance covers third-party obligations arising from the covered cargo's loss or damage to the ship, port, or other modes of transportation. Moreover, this insurance benefits tankers and other big cargo shipments the most. As a result, the increased demand for marine cargo insurance will likely drive market expansion in the future.

The indices for sea transportation have dramatically improved. The lowest transit cost is the most appealing component of maritime transportation. Furthermore, cargo travels indefinitely, regardless of weather or season. However, because this means of transportation is associated with significant hazards, marine cargo insurance has become mandatory. Furthermore, the main cargo risk is associated with container damage during loading, various ship malfunctions, fires, rollovers, accidents, stranding, drowning, harmful air conditions, wet cargo, swept off the deck, or forcedly thrown overboard. Furthermore, piracy or hijacking of the ship is a possibility. As a result, the market is likely to be driven by an increase in the number of cargo-related risks.

The market, however, is constrained by the high cost of insurance coverage, which can be costly, making it inaccessible to small and medium-sized businesses. For certain firms, the cost of premiums and deductibles can be a considerable barrier to entry, making them unwilling or unable to obtain insurance.

Marine cargo insurance is in high demand since it protects against various dangers and helps trade activities run smoothly. Furthermore, enormous maritime business operations result in significant losses for shipowners, cargo owners, and charterers, such as ship, cargo vessel, and terminal damage. As a result, controlling these risks and losses in the maritime business becomes highly challenging, and maritime insurance is crucial in limiting such losses. As a result of enormous losses and rising cargo concentrations in warehouses, ports, and transit, global demand for maritime cargo insurance is likely to increase during the projection period.

• The assumption that logistics insurance is an unnecessary investment greatly contributes to the lack of awareness. Many firms or individuals believe that the risk of loss or harm is negligible and that any potential losses can be absorbed. Furthermore, the logistics industry is prone to a high claim frequency because of the nature of the risks involved. As a result, insurers may face increased pressure to manage claims effectively while retaining profitability. These factors act as a challenging factor for the market.

Market Segmentations

• The Global Cargo Insurance Services Market is segmented based on Type, Coverage, Application, End-User, and Geography.
• By Type, the market is classified into Land Cargo Insurance, Air Cargo Insurance, Marine Cargo Insurance, and Parcel Transportation Insurance.
• Over the forecast period, the Marine Cargo Insurance segment is expected to account for the largest revenue share, owing to increased international transportation, marine projects and international shipping exposure to a wide range of risks and severe financial consequences, and advancements in the offshore and marine insurance industry. Marine cargo insurance covers all losses or damages to ships or other modes of transportation or cargo used to convey products. This insurance reimburses policyholders for expenses incurred because of property damage or loss.
• By Coverage, the market is classified into Damage from Loading / Unloading, Bad Weather, Piracy, and Other Risks.
• The segment with the largest market share is Damage from Loading/Unloading. This is because damage during loading/unloading is a typical risk in cargo transportation, and insurance policies cover damages that may occur during this procedure. This includes coverage for cargo damage caused by improper handling, mistreatment, or theft. Damage during loading/unloading is especially critical for companies specializing in transportation or logistics, as it poses a considerable risk to these enterprises.
• By Application, the market is classified into Marine, Land, and Aviation.
• The Marine segment is expected to register a significantly faster revenue CAGR over the forecast period. This segment's revenue growth can be due to increased international exports of goods and products, increased investment in marine cargo insurance, and the growing demand to transfer goods safely and effectively across borders. Marine transportation contributes to about 80-90% of global trade, transporting over 10 billion tonnes of containers solid and liquid bulk cargo annually around the world. Every year, the sea transportation sector loses billions of dollars to cargo theft and cargo loss, creating the need for extensive marine insurance coverage that includes transit risks such as storage and processing, consignment property, and commodities in storage.
• By End-User, the market is classified into Individuals and Enterprises.
• The Enterprises segment has the largest share of the market. This is due to their massive cargo volumes and greater risk profiles in transit. Logistics insurance is required for businesses to successfully protect their assets and operations from potential damages and losses that may occur during the transit of goods. Businesses are legally obligated to ensure the safety of their goods while in transit. Logistics insurance covers legal responsibilities that may arise from third-party damages or injuries sustained during transportation.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• The Americas are expected to account for the largest revenue share in the global market during the forecast period, owing to the region's rapidly growing import and export industry, increasing cross-border trading, and growing need for insurance due to the region's rising incidence of cargo theft and ship damage. Other factors predicted to fuel revenue development in the American market include rapid advancements in tracking technology, the integration of AI and automation in the shipping industry, favorable cargo insurance policies, and significant insurance companies in the region.

Recent Development

• By acquiring Corvus Insurance's Smart Cargo Insurance business, HW Kaufman Group’s RB Jones increased its ocean cargo capabilities. The cargo would contain temperature-sensitive goods, including food and pharmaceuticals. - September 2022
• Redkik, a software company based in Finland, decided to focus on simplifying the marine cargo insurance industry and raised a USD 3.3 Mn seed funding round. The company engages in cutting-edge research and development to strengthen its business. - February 2022

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Geodis Overseas, Integro, Liberty Mutual Insurance, Lloyd's, Lockton, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of the Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)

Competitive Quadrant

The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Cargo Insurance Services Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development, and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Cargo Insurance Services Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Cargo Insurance Services Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
• The report offers customized research - tailored uniquely to our customers with a quick turnaround time. We offer a 15% customization option at no extra charge to all our clients for any of our syndicated reports.

Report Highlights

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market