Marine Insurance Global Market Report 2024

The marine insurance market size has grown strongly in recent years. It will grow from $30.35 billion in 2023 to $32.34 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth during the historical period can be attributed to the expansion of global trade, the increase in international shipping activities, concerns regarding piracy and maritime security, the implementation of stringent regulatory requirements, and the impact of natural disasters and climate risks.

The marine insurance market size is expected to see strong growth in the next few years. It will grow to $42.3 billion in 2028 at a compound annual growth rate (CAGR) of 6.9%. The expected growth in the forecast period is influenced by several factors: the emergence of unmanned vessels, growing concerns about cybersecurity, adaptations to address climate change, initiatives promoting green shipping, and the expanding reach of renewable energy. Key trends anticipated during this period encompass digitization and the intersection with insurance technology (insurtech), the utilization of data analytics and predictive modeling, the challenges and opportunities posed by autonomous vessels and associated technology risks, the dynamics of economic and trade changes, as well as the exploration of alternative risk transfer mechanisms.

The rise in global trade is expected to drive the growth of the marine insurance market. Global trade involves the exchange of goods and services across international borders, and the increasing use of ships for import and export activities is a key driver for the marine insurance sector. Shipping companies seek insurance to protect their vessels and cargo from unforeseen damages, making marine insurance an essential component of the maritime industry. For example, in February 2021, the United Nations Conference on Trade and Development reported that global trade reached a record level of $28.5 trillion in 2021, marking a 25% increase from the previous year. This substantial growth in global trade underscores the need for marine insurance to mitigate the risks associated with shipping goods across international waters. As global trade continues to expand, driven by factors such as globalization and increased economic activity, the demand for marine insurance is expected to grow in tandem, thereby propelling the growth of the marine insurance market.

The increasing frequency of natural disasters is expected to drive the growth of the marine insurance market in the future. Natural disasters are sudden and catastrophic events in nature that often result in significant damage and loss of life. Marine insurance plays a critical role in mitigating the financial impact of natural disasters on the maritime industry. It serves as a safety net for shipping companies, cargo owners, and other stakeholders involved in marine transportation, offering financial compensation for losses or damages caused by natural events such as hurricanes, typhoons, earthquakes, and tsunamis. For example, in January 2022, according to the NOAA National Centers for Environmental Information, the United States experienced 18 separate weather and climate disasters, each costing at least 1 billion dollars. Therefore, the increasing occurrence of natural disasters is a key driver behind the growth of the marine insurance market.

Technological advancements are a significant trend gaining traction in the marine insurance market, with major companies in the sector focusing on the introduction of new technologies to drive market growth. For example, in January 2021, B3i, a Zurich-based insurance blockchain firm, partnered with Eurapco to launch Eurapco Unity. This blockchain-based technology enables a network of insurance companies to transfer one-time maritime insurance risks among themselves. Additionally, it allows businesses to share development expenditures and utilize a shared infrastructure. Eurapco is a European alliance primarily composed of mutual insurance companies.

Major players in the marine insurance market are emphasizing strategic collaborations to enhance their service offerings for customers. Strategic collaboration involves two or more independent entities forming a mutually beneficial partnership to achieve shared goals aligned with their individual strategic objectives. For example, in December 2021, Allianz Global Corporate & Specialty SE, a Germany-based financial services provider, partnered with Visicover, a UK-based insurtech company, to introduce an online marine insurance service for UK leisure vessel owners. This collaboration is in line with Allianz's Digital by Default strategy and leverages Visicover's expertise in delivering user-friendly online insurance solutions.

In November 2022, Ambac Financial Group, Inc., a US-based insurance company, acquired All Trans Risk Solutions and Capacity Marine Corporation for an undisclosed sum. This acquisition is expected to bolster Capacity Marine's capabilities to address challenges in the insurance and reinsurance sectors. All Trans Risk Solutions, based in the US, operates in the transportation insurance industry, while Capacity Marine Corporation, also based in the US, specializes in wholesale/retail brokerage and reinsurance intermediary services, focusing on marine and international risk.

Major companies operating in the marine insurance market report are Berkshire Hathaway Specialty Insurance, Axa S.A., American International Group Inc., Tokio Marine Holdings Inc., Swiss Reinsurance Company Ltd., Chubb Limited, Zurich Insurance Group, Sompo International Holdings Ltd., The Travelers Indemnity Company, Fairfax Financial Holdings Limited, The Hartford Financial Services Group Inc., Intact Financial Corporation, Everest Reinsurance Group Ltd., Aon PLC, Arch Capital Group Ltd., HDI Global SE, Markel Corporation, Arthur J. Gallagher & Co., American Financial Group Inc., The Hanover Insurance Group Inc., AXIS Capital Holdings Limited, RenaissanceRe Holdings Ltd., Aspen Insurance Holdings Limited, Enstar Group Limited, Essent Group Ltd., ProSight Global Inc., Employers Holdings Inc., Allianz SE, Bermudan Insurance Holding Company Ltd., Validus Holdings Inc., Argo Group International Holdings Ltd.

Europe was the largest region in the marine insurance market in 2023. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the marine insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the marine insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

In marine insurance, the main types are cargo insurance, hull and machinery insurance, marine liability insurance, and offshore/energy insurance. Cargo insurance protects shipments from physical damage or theft while in transit, covering loss, damage, or theft. Policy types include time, voyage, floating, valued, and others, with distribution through wholesalers, retail brokers, and others. End users include ship owners, traders, and others.

The marine insurance market research report is one of a series of new reports that provides marine insurance market statistics, including marine insurance industry global market size, regional shares, competitors with a marine insurance market share, detailed marine insurance market segments, market trends and opportunities, and any further data you may need to thrive in the marine insurance industry. This marine insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The marine insurance market includes revenues earned by entities by protection & indemnity (P&I) insurance, freight, demurrage and defense (FD&D) insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.