Marine Insurance Market Outlook - 2028
The global marine insurance market was valued at $26.83 billion in 2020, and is projected to reach $33.90 billion by 2028, growing at a CAGR of 3.1% from 2021 to 2028.
Marine insurance coverage helps in managing risks in the event of unfortunate incidents such as damage to the property & environment, accidents, and loss of life. It is designed to minimize the financial loss incurred by a policyholder in the event of an accident, natural hazard, or other catastrophe. Generally, marine insurance policy is availed by ship owners, cargo owners, and charterers.
Surge in implementation of analytics & telematics, which provides an ability to more accurately assess both current and future risk occurring in the marine business is becoming major growth factor for the market.
In addition, increased demand & awareness toward marine insurance among ship owners, cargo owners, and charterers facing huge losses such as damage caused to ships, cargo vessels, and terminals, is another major factor that propels the marine insurance market growth.
However, fluctuating & sudden increments in marine insurance premiums and imposition of lockdown across several countries are some of the factors that limit the market growth. Furthermore, developing economies offer significant opportunities for marine insurers to expand & develop their offerings, especially among emerging economies such as Australia, China, India, Singapore, and South Korea. In addition, rapid growth in incorporation of IoT, which helps in risk monitoring, simplifies claims processing, and facilitates loss prediction & prevention is expected to provide lucrative opportunities to the marine insurance market in the coming years.
The report focuses on growth prospects, restraints, and trends of the marine insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the marine insurance market outlook
Segment Review
The marine insurance market is segmented on the basis of type, distribution channel, end user, and region. By type, it is segregated into cargo insurance, hull & machinery insurance, marine liability insurance, and offshore/energy insurance. By distribution channel, it is segregated into wholesalers, retail brokers, and others. Based on end user, the market is segmented into ship owners, traders, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Type
Marine Liability Insurance segment will grow at a highest CAGR of 4.7% during 2020 - 2028
Competitive Analysis
The report analyses the profiles of key players operating in the marine insurance market such as Allianz, American International Group, Inc., Aon plc, Arthur J. Gallagher & Co., AXA, Chubb, Lloyd's, Lockton Companies, Marsh LLC, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the marine insurance industry.
COVID-19 Impact Analysis
The COVID-19 pandemic has a negative impact on the marine insurance market, owing to increased uncertainty & protectionism in global trade, shifting supply chain demands, and business closures across several industry verticals, which is set to decline the demand for marine insurance. Moreover, to curb the spread of virus, several regions have imposed lockdown, which has resulted into geopolitical tensions & accelerating massive change in trade patterns, which has financially affected businesses. Therefore, demand for marine insurance products have declined tremendously during the global health crisis.
Top Impacting Factors
Increased Awareness & Demand Towards Marine Insurance Globally
There is an increase in the demand for marine insurance as it provides coverage against a wide range of risk measures and helps in the smooth functioning of trade activities. According to Uniglobal, a leading knowledge sharing institution, nearly 85% of the global trade is carried by sea & tons of cargo ships are into operations, largely contributing toward the global economy.
Moreover, ship owners, cargo owners and charterers face huge losses such as damage caused to ships, cargo vessels, and terminals due to massive marine business operations. Therefore, management of these risks & losses in the marine business becomes very complex, and thus maritime insurance plays a vital role to overcome such losses. As a result, huge losses and higher concentrations of cargo in warehouses, ports & in transit are propel the demand for marine insurance globally.
By Distribution Channel
Wholesalers Segment holds a dominant position throughout the forecast period.
Imposition of Lockdown across Several Countries
Business uncertainties in terms of politically & economically, geopolitical tensions, changing trade patterns, cyber-attacks, the climate crisis, new environmental regulations, decarbonization of the shipping industry, among others have severely affected the marine insurance market owing to unprecedented COVID-19 pandemic situation.
Moreover, with these several factors, demand for marine insurance tends to decline as ship owners & cargo owners across several countries have temporarily discontinued the business operations. Therefore, imposition of lockdown across several countries has limited the growth of the marine insurance market.
Rapid Growth in Incorporation of IoT in Marine Insurance
Key players in the market continue to incorporate Internet of things (IoT) system in their existing marine insurance product lines. In addition, IoT helps in facilitating loss prediction & prevention, risk monitoring, and simplifies claims processing. Furthermore, insurers are investing heavily in IoT to manage engine performance, CO2 emissions, and navigation & cargo supply chains, which therefore accelerates streamlined offerings of marine insurance.
Moreover, these benefits provided an incorporation of IoT promotes the demand for maritime insurance in the market. Therefore, incorporation of IoT in marine insurance by various players boosts the growth of marine insurance market in the upcoming years.
By Region
Asia-Pacific would exhibit the highest CAGR of 4.1% during 2021-2028
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global marine insurance market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global marine insurance market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the market.
- An extensive analysis of the key segments of the industry helps to understand the global marine insurance market trends.
- The quantitative analysis of the global marine insurance market forecast from 2021 to 2028 is provided to determine the market potential.
Key Market Segments
By Type
- Cargo Insurance
- Hull & Machinery Insurance
- Marine Liability Insurance
- Offshore/Energy Insurance
By Distribution Channel
- Wholesalers
- Retail Brokers
- Others
By End User
- Ship Owners
- Traders
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordic Countries
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- Singapore
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Allianz
- American International Group, Inc.
- Aon plc
- Arthur J. Gallagher & Co.
- AXA
- Chubb
- Lloyd's
- Lockton Companies
- Marsh LLC
- Zurich
Marine Insurance Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Distribution Channel |
|
 By End User |
|
 By Region |
|
 Key Market Players | Arthur J. Gallagher & Co., Allianz, American International Group, Inc., Lloyd's, Zurich, Chubb, Aon plc, AXA, Lockton Companies, Marsh LLC |
Analyst Review
Stringent government regulations & mandatory marine insurance coverage among ship owners & cargo owners are promoting the growth of the marine insurance industry. Further, the marine insurance market is one of the severely affected industries, as the pandemic has affected global supply chains, disrupting manufacturing output, and causing delays to cargo in transit. In addition, marine insurers are also affected by changing business infrastructure, government regulations, consumer demand, and disruption in supply chain globally.
However, a considerable number of companies perceive that they have minimum marine insurance exposure. This scenario is changing, and 2020 has witnessed an increase in sale of marine insurance, owing to rapid growth in incorporation of IoT in marine insurance and surge in implementation of analytics & telematics, which has led to increased adoption of marine insurance among ship owners & cargo owners.
The marine insurance market is consolidated with the presence of top providers such as Marsh LLC, American International Group, Inc., Aon plc, and Arthur J. Gallagher & Co. Europe dominated the marine insurance market, in terms of revenue in 2020, and is expected to retain their dominance during the forecast period. However, Asia-Pacific is anticipated to experience significant growth in the future, owing to emerging economies and increasing government support toward trading globally. This is projected to accelerate the demand for marine insurance in the region.
Furthermore, the marine insurance market is particularly brisk in countries, such as India, Australia, China, Japan, Indonesia, Korea, Hong Kong, Taiwan, with high GDP growth and rise in per capita income. Some of the key players profiled in the report include Allianz, AXA, Chubb, Lloyd's, Lockton Companies, Marsh LLC, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The Marine Insurance Market is estimated to grow at a CAGR of 3.1% from 2021 to 2028.
The Marine Insurance Market is projected to reach $33.90 billion by 2028.
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Factors such as increased demand & awareness toward marine insurance among ship owners, cargo owners, and charterers facing huge losses such as damage caused to ships, cargo vessels, and terminals drives the growth of the Marine Insurance market
The key players profiled in the report include Allianz, American International Group, Inc., Aon plc, Arthur J. Gallagher & Co., AXA, Chubb, Lloyd's, Lockton Companies, Marsh LLC, and Zurich, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Marine Insurance Market is segmented on the basis of type, distribution channel, end user, and region.
The key growth strategies of Marine Insurance market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Wholesalers Segment holds a dominant position throughout the forecast period.
Marine Liability Insurance segment will grow at a highest CAGR of 4.7% during 2021 - 2028
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