Cargo Insurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The cargo insurance market, measured in terms of gross written premiums, was valued at USD 23.30 billion in 2025, is estimated at USD 23.80 billion in 2026, and is projected to reach USD 30.5 billion by 2031, registering a CAGR of 5.10% from 2026 to 2031. This report is segmented by Mode of Transport (Sea, Road, and More), Cargo Profile (Containerized, and More), Trade Scope (Cross-Border, and More), Distribution (Direct Insurers, and More), Policyholder Type (Cargo Owner, Seller, Buyer or Trader, and More), End-User Industry (Food, Beverage, and Agri-Commodities, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Global Cargo Insurance Market Trends and Insights

Expansion of Cross-Border Trade and E-Commerce Shipments

Cross-border trade remains a major source of premium growth for the cargo insurance market. Global merchandise trade volume rose 4.6% in 2025, and worldwide merchandise exports reached USD 26.3 trillion. Trade-volume growth is estimated at 1.9% in 2026 as tariff friction and Middle East energy disruption weigh on shipments. Higher shipment activity increases the number of cargo movements that require cover across origin, transit, destination, and storage points. Tariff-led front-loading in early 2026 also changed shipment timing, raising insured values and concentrating exposures at gateway ports. Cross-border e-commerce also creates frequent low-value parcel movements, where cover may be bought based on cost rather than replacement value. This pattern can leave large aggregate exposures in the shipper’s interest portfolios when losses affect many parcels at once.

Supply-Chain Complexity and Resilience Spending

Supply-chain resilience spending is changing the way corporations purchase cargo cover. A May 2026 survey by KPMG found that most companies allocated 11-15% of revenue to supply-chain operations, compared with 5-10% in 2024. The same survey found that 73% planned a comprehensive operating-model transformation within 36 months, while 51% identified risk management as the main objective. This spending supports demand for multinational programs that combine ocean cargo, inland transit, war-risk buyback, and digital shipment visibility. Zurich notes that multinational cargo programs can help businesses coordinate protection across complex supply chains. These programs allow risk managers to align policy terms across countries rather than arrange isolated cover for each route. Nearshoring and route diversification extend a shipper’s exposure beyond a single ocean leg into several transport stages.

Regulatory Fragmentation and Documentation Complexity

Cargo cover operates across carrier liability conventions that can apply different limits and dispute processes. Multimodal shipments can involve road, sea, and air conventions during a single journey, which can leave uncertainty at handover points. The Joint War Committee expanded its Listed Areas in March 2026 to include the Persian Gulf, Strait of Hormuz, and Gulf of Oman. This added notification and premium adjustment requirements for underwriters with cargo exposure in the region. Sanctions screening under the Office of Foreign Assets Control, the European Union, and the United Kingdom Office of Financial Sanctions Implementation rules also requires continuing checks across the trade chain. These rules apply to counterparties, shipment routes, and the goods being moved. They can delay the placement process when trade documentation is incomplete or requires further review. These duties can create a heavier administrative burden for smaller exporters and can sustain underinsurance in emerging markets.

Other drivers and restraints analyzed in the detailed report include:

• Growth of High-Value, Time-Sensitive, and Temperature-Controlled Cargo
• Digital Underwriting, Real-Time Visibility, and Automated Claims
• Cyber Fraud, Cargo Theft, and Data-Quality Risk

Segment Analysis

Sea transport held 54.7% of the overall cargo insurance market in 2025. Ocean shipping carries 80% of global merchandise trade volume, which supports a large base of open-cover business for marine underwriters. Large ocean accounts can be managed through established accumulation limits and policy schedules. Road, rail, and inland waterway transport support domestic movement and regional freight corridors. These modes are gaining relevance where manufacturing moves closer to final markets and where cross-border trucking replaces longer ocean routes. The result is a broader set of transit points that need to be reflected in policy declarations and exposure management.

Air transport is projected to grow at 7.8% CAGR through 2031, the fastest rate among transport modes. Semiconductors, biologics, and precision industrial equipment increase the insured value attached to air shipments. Such cargo can carry insurance values that are 3-5 times higher per kilogram than standard containerized goods. The 2026 Strait of Hormuz disruption redirected some cargo from sea routes to air and overland alternatives. This movement increased war-risk charges and raised air-mode premium exposure within a short period. The cargo insurance market, therefore, requires flexible capacity across transport modes when major routes become disrupted. Air coverage also requires attention to handling, packaging, temperature, and declared-value controls.

Containerized cargo held 47.6% of the segment in 2025. Standardized container shipping enables insurers to use container-level accumulation limits and consistent reporting practices. Dry bulk and liquid bulk business covers energy, agriculture, and petrochemical flows. These classes are often managed through survey requirements and cargo-specific policy conditions. Their underwriting approach differs from the all-risk protection commonly sought for higher-value manufactured goods. Containerized business remains central because it combines large shipment volumes with established reporting and declaration processes.

Project, heavy-lift, and out-of-gauge cargo is projected to grow at 7.4% CAGR through 2031. Wind turbine blades, transformer equipment, and large battery storage assets require tailored transport and insurance arrangements. The standard Institute Cargo Clauses do not address every exposure created by unusual dimensions, long transit periods, and specialized handling. IUMI noted in March 2026 that project sites can concentrate high-value out-of-gauge inventory at ports for long periods. This can increase the size of a single event loss in congested terminals. The cargo insurance industry needs detailed site, route, and handling assessments for these shipments. Coverage decisions also depend on whether specialized lifting equipment and storage conditions are available at each stage.

Complete Report Scope:

• By Mode of Transport
  • Sea (Deep-Sea and Short-Sea / Coastal)
  • Inland Waterway
  • Road
  • Rail
  • Air
• By Cargo Profile
  • Containerized Cargo
  • Dry Bulk Cargo
  • Liquid Bulk Cargo
  • Break-Bulk and General Cargo
  • Project, Heavy-Lift and Out-of-Gauge
  • Rolling Cargo / Ro-Ro
• By Trade Scope
  • Cross-Border (Import, Export, Entrepôt)
  • Domestic Inland Transit
• By Distribution Channel
  • Brokers and Agents
  • Direct Insurers
  • Online and Digital Platforms
• By Policyholder Type
  • Cargo Owner, Seller, Buyer or Trader
  • Freight Forwarder / 3PL-Arranged Shipper’s Interest
• By End-User Industry
  • Food, Beverage, and Agri-Commodities
  • Energy and Bulk Commodities
  • Chemicals and Pharmaceuticals
  • Automotive and Industrial Equipment
  • Electronics and High-Value Manufactured Goods
  • Retail, Consumer Goods, and E-Commerce
  • Construction and Infrastructure Project Owners
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Vietnam
    • Rest of Asia-Pacific
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Turkey
    • South Africa
    • Egypt
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific held 39.5% of the cargo insurance market size in 2025 and is projected to grow at 6.8% CAGR through 2031. Asia generated 60% of worldwide cargo premium growth in 2024. China contributed USD 3.99 billion in cargo premiums in 2024, while Japan contributed USD 1.33 billion and India contributed USD 422 million. China’s position is supported by e-commerce exports, return-shipping insurance programs, and intra-Asian manufacturing trade. India is expanding port capacity through the planned Vadhavan Port, which is expected to add 23.2 million twenty-foot equivalent units of container-handling capacity. This will increase the scale of domestic accumulation exposure. New manufacturing routes in the region also require insurers to assess the risk profile of ports, inland connections, and warehousing locations. Regional growth, therefore, reflects both trade expansion and the need for coverage suited to more varied logistics networks.

Vietnam, Indonesia, Thailand, Malaysia, and Singapore are gaining relevance as manufacturing diversification creates new trade routes. These routes require cargo insurance structures that reflect changing corridor exposures and local logistics practices. Europe remains a historic center for marine cargo underwriting capacity, including London, Hamburg, and Nordic markets. IUMI data showed European ultimate loss ratios improved from above 65% to below 45% between 2018 and 2024. This improvement supported technical profitability and attracted new managing general agents and insurtech capacity. KRAVAG reported 9.2% premium income growth in 2025 to nearly EUR 2 billion (USD 2.2 billion). European underwriters remain important where multinational programs require specialized capacity and established claims support. Their expertise remains relevant for complex international placements that involve several carriers and legal regimes.

North America faces a different set of pricing pressures. IUMI warned that United States tariffs could raise insured cargo values and accumulation risk by up to 50% at major gateway ports. Shippers may need to raise declared values to avoid underinsurance where commodity prices change. The Middle East and Africa have strategic importance beyond their present premium base. Allianz Commercial estimated that the 2026 Strait of Hormuz disruption stranded 1,150 cargo-carrying vessels, representing USD 125 billion in vessel and cargo value. The event showed that a single chokepoint can immobilize energy and general cargo within days. It also showed the limits of accumulation models that assume normal operating conditions. Emergency capacity arrangements demonstrate the importance of specialist war-risk cover when normal transit routes are unavailable. The cargo insurance market must account for how quickly a regional event can affect global cargo flows.

List of Companies Covered in this Report:

• Allianz SE
• American International Group, Inc.
• AXA XL
• Chubb Limited
• Zurich Insurance Group
• Lloyd’s of London
• QBE Insurance Group Limited
• Swiss Re Ltd
• Munich Re
• Tokio Marine Holdings, Inc.
• Liberty Mutual Insurance
• Berkshire Hathaway Specialty Insurance
• The Travelers Companies, Inc.
• CNA Financial Corporation
• Sompo Holdings, Inc.
• Markel Group Inc.
• Assicurazioni Generali S.p.A.
• Starr International Company, Inc.
• Tokio Marine HCC
• UPS Capital Corporation
• TT Club Mutual Insurance N.V.
• Marsh McLennan
• Aon plc
• Lockton Companies, LLC
• Arthur J. Gallagher & Co.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support