Shipping Insurance Market Size, Share, Growth, and Industry Growth, By Type (Loss, Damage, and Theft), By Application (Commercial and Residential), Regional Insights, and Forecast To 2031

Updated On: 15 April 2024

Shipping Insurance Market REPORT OVERVIEW

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The global shipping insurance market size was USD 24573 million in 2021 and market is projected to touch USD 71114 million by 2031, at a CAGR of 11.21% during the forecast period.

A shipping insurance policy presents financial protection against damages and losses incurred during transit to terminals, ships, and ships. Meeting sealed regulatory submissions of diverse countries is generally required throughout the export and import process. Numerous insurers are now offering policies that protect against theft, shortages, malicious damage, and non-delivery of goods. Customers' individual business needs are considered when creating these understandings. The insurers also cover failures brought on by collisions, explosions, hijackings, fire, accidents, and overturning.

These arrangements may take into account the particular business needs of the customers. Additionally, they protect against losses caused by fire, explosions, hijackings, mishaps, crashes, and flipping. This service reimburses senders whose parcels are stolen, misplaced, damaged, or lost in transit. In many countries, courier companies or postal services offer this insurance. The insurance companies do not insure all the goods. The postal services do not insure certain economy or premium class parcels, whereas the third-party insurance companies often will.

COVID-19 Impact: Restrictions on Marines Hampered Market Growth

Due to growing protectionism and uncertainty in global commerce, shifting supply chain demands, and firm closures across numerous sector verticals, the COVID-19 pandemic has had a negative influence on the maritime insurance market. It is expected to reduce demand for marine insurance. Additionally, lockdowns have been implemented in numerous areas to stop the virus' spread, which has increased geopolitical unrest and has negatively impacted businesses' bottom lines. Therefore, the global health crisis drastically decreased the demand for marine insurance products. The delivery of parcels was on hold owing to various government restrictions, which retarded market growth. 

LATEST TRENDS

"Growing Awareness and Demand for Marine Insurance to Drive Major Growth"

The demand for marine insurance is rising since it offers protection against various risk factors and aids in the efficient operation of commercial activities. A significant knowledge-sharing organization called Uniglobal estimates that tons of cargo ships are currently in operation, and all international trade is transported by sea, significantly boosting the world economy. These factors are expected to surge the shipping insurance market growth. International shipping of goods through ships or planes are estimated to impose companies to offer shipping insurance service to their customers. 

Shipping Insurance Market Segmentation

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• By Type Analysis

By type, the market is segmented into loss, damage, and theft.

• By Application Analysis

Based on application, the market is classified into commercial and residential.

The commercial segment is estimated to dominate the market due to the growing marine activities and the number of employees involved in the marine industry. 

DRIVING FACTORS

"Rapid Growth in IoT Incorporation of Marine Insurance to Boost Service Demand"

Internet of things (IoT) systems are still included by major industry players in their current marine insurance product lines. IoT also facilitates risk monitoring, claims processing simplification, and loss prediction and prevention. Additionally, insurers are making significant investments in IoT to control CO2 emissions, navigation, engine performance, and cargo supply chains, which promotes the development of simplified maritime insurance services. Additionally, these advantages are given if IoT integration increases market demand for maritime insurance. As a result, the market for marine insurance will increase in the years to come, thanks to the inclusion of IoT by various businesses.

"Rising Demand for Safety to Aid Market Growth"

One of the main factors driving the growth of the shipping insurance market is the rising demand for and knowledge of shipping insurance among ship owners, cargo owners, and charterers who may suffer significant losses due to damage to ships, cargo vessels, and terminals. In the upcoming years, it is anticipated that a rapid increase in IoT integration, which aids in risk monitoring, accelerates loss prediction and prevention, and makes claims processing simpler, will spur market expansion for shipping insurance.

RESTRAINING FACTORS

"High Price of Insurance to Limit Market Growth"

One of the things that prevent the industry from growing is the variable and unexpected increases in marine insurance premiums and the implementation of lockdowns in various nations. These factors are expected to challenge the shipping insurance market's growth.

Shipping Insurance Market REGIONAL INSIGHTS

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"North America to Dominate the Market Due to the Emerging Transportation Market"

North America is expected to be the dominant market due to the developing transportation market. Accelerating marine transportation and import-export activities to surge growth in the region.

Asia Pacific is likely to show significant growth in the market owing to the growing ship transportation in the region. Countries such as India, China, and Japan are developing economies to offer critical open doors for backup plans to serve their contribution to regional growth.

KEY INDUSTRY PLAYERS

"Key Players Focusing On Innovative Technology Development to Grow in Market"

Businesses are working on developing new technology to offer more easy ways to increase product portfolio. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. The marketplace is competitive as a result of the existence of numerous huge firms. An extensive worldwide consumer base and the execution of operations through specialized distribution networks are other characteristics. The key companies strive to gain a higher market share by launching new products. 

List of Market Players Profiled

• U-PIC (U.S.)
• Arpin International Group (U.A.E.)
• InsureShip (U.S.)
• Chubb (U.S.)
• UPS (U.S.)
• Allianz (Germany)
• USPS (U.S.)
• Fedex (U.S.)
• Shipsurance USA (Canada)
• Parcel Insurance Plan PIP USA (U.S.)
• Travelers (U.S.)
• CargoCover (Canada)
• AIG US (U.S.)
• Unishippers (U.S.)

REPORT COVERAGE

The market research study offers thorough information on numerous market aspects. The growth drivers, restraints, geographical analysis, competitive environment, and challenges are a few of them. Additionally, it provides an analytical analysis of market trends and projections for various factors to show potential investment areas. From 2021 through 2031, the market is objectively assessed to determine its financial viability. The report's data was compiled using various primary and secondary sources.