Logistics Insurance Market 2023: Reaching $70.46B at 2.8% CAGR
The global logistics insurance market size is expected to reach USD 70.46 billion by 2030, growing at a CAGR of 2.8% between 2023 and 2030.
Mentioned companies
American International Group, Inc.
Allianz
DB Schenker
People’s insurance company
United Parcel Service of America, Inc.
AXA SA
Thomas Miller Group
Concord
AsstrA-Associated Traffic AG
Arch Group
With the increase in e-commerce activity, logistics companies are handling a larger volume of shipments, increasing the risk of loss or damage. This makes logistics insurance an essential part of risk management, providing coverage against potential financial losses arising from various incidents that may occur during the transportation of goods.
The use of digital technologies has had a positive impact on the logistics insurance market. Logistics companies have embraced digitization to facilitate the collection and analysis of shipment data, providing valuable insights into potential risks and trends.
This information has enabled logistics insurance companies to develop insurance products and pricing models that are more tailored to the real risks that logistics companies face, leading to accurate and efficient risk management.
Logistics insurers are adopting the latest technologies to improve their service offerings, increase operational efficiency and enhance the customer experience. One of the key technologies that logistics insurance providers are adopting is automation, which involves using software to perform repetitive tasks and streamline processes. This includes automated underwriting and claims processing, which reduces the time and resources needed 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 insurance companies, making risk assessment and management difficult. This uncertainty has led to insurers being more cautious in underwriting new insurance policies, limiting market growth.
The most important news about the logistics insurance market
- The cargo insurance segment dominated the market in 2022. Adoption of cargo insurance is growing due to various risks associated with the transportation of goods and cargo including theft, damage and loss, which can cause significant financial losses to logistics companies. According to Verisk Analytics’ CargoNet study, supply chain risk events will increase by 15% in 2022, reaching 1,778 in the US and Canada, and cargo theft will increase by 20%. The total value of the loss for 2022 in the US and Canada was $223 million.
- The maritime segment dominated the market in 2022. Maritime transport plays a key role in global trade by transporting valuable commodities such as oil, gas and raw materials. Marine cargo insurance is therefore essential to protect 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 to prevent these losses and has led to the growth of this segment.
- The enterprise segment dominated the market in 2022. The dominant position in the segment can be attributed to the significant volume of shipments and valuable cargo of enterprises, which exposes them to a higher risk 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. In addition, Europe has a high concentration of multinational corporations that have extensive supply chains and require comprehensive insurance coverage, creating significant demand for logistics insurance.
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