Global Logistics Insurance Market Overview
Logistics Insurance Market Size was estimated at 11.35 (USD Billion) in 2022. The Logistics Insurance Market Industry is expected to grow from 11.84 (USD Billion) in 2023 to 17.3 (USD Billion) by 2032. The Logistics Insurance Market CAGR (growth rate) is expected to be around 4.31% during the forecast period (2024 - 2032).
Key Logistics Insurance Market Trends Highlighted
Key Market Drivers: A driving force behind the logistics insurance market is the ever-growing trend towards globalization of trade, with e-commerce impacting it and making supply chains more sophisticated. In particular, globalization has led to a rise in cross-border shipping that necessitates tailored coverage by insurers. Additionally, e-commerce has stimulated demand for insurance services in this field as online businesses want their shipments to be protected. Moreover, there is a need to insure against these risks due to the increasing complexities within supply chains.
Areas for exploration/capitalization:
These opportunities include developing new products that address the challenges faced by modern supply chains, partnering with logistic providers so as to provide an integrated package of insurance solutions, and entering high-growth potential markets in emerging economies.
Trends Recently Observed:
Among recent trends in logistics insurance are using technology to streamline underwriting and claims adjusting processes, customizing insurance coverage for certain industries, and increasing demand for environmental, social and governance (ESG)-compliant insurance. Technology also plays an important role in improving risk assessment and detection of fraud.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Logistics Insurance Market Drivers
Increasing Global Trade
The growth of global trade has led to an increase in the demand for logistics services, including logistics insurance. As businesses expand their operations across borders, they need to ensure that their goods are protected against risks such as damage, loss, or theft. Logistics insurance provides businesses with the peace of mind that their goods will be financially protected in the event of an unforeseen event. The increasing globalization of trade is expected to continue to drive the demand for logistics insurance in the coming years.
Rising Complexity of Supply Chains
The increased complexity of supply chains has also contributed to the growing demand in the logistics insurance market. With goods being sourced from a larger number of places and the distances they are transported increasing, the risk of disruption is higher. Logistics insurance can be the mechanism to manage these risks, as it provides coverage in cases of delay due to covered causes, as well as damage or loss of the acquired products during transportation.
Growing Awareness of Risk Management
Logistics insurance will become more prominent as an element of a comprehensive risk management strategy. Businesses are slowly realizing the significance of managing risk, and insurance can be a starting point for protecting their financial interests in case of unforeseen events. Thus, the awareness of risk management is to fuel the demand for logistics insurance in the forthcoming years.
Logistics Insurance Market Segment Insights:
Logistics Insurance Market Coverage Type Insights
The Logistics Insurance Market is segmented by Coverage Type into Cargo Insurance, Freight Insurance, Liability Insurance, Marine Insurance, Property Insurance, and Workers’ Compensation Insurance. Of these, standing at more than 35%, cargo insurance held the leading market share in the Logistics Insurance Market in 2023, with a volume of international trade overheads increasing the demand to safeguard transit. Over 25% of the market revenue was held by the freight insurance segment. The demand for specialized insurance specific to transportation grew the market, aiding the market share. About 20% of the share is expected to be held by liability insurance, and logistics companies are on the rise in pursuing to protect themselves from potential liabilities in the form of legal claims. Marine Insurance, Property Insurance, and Workers’ Compensation Insurance are other segments that hold an important market share. The market for Logistics Insurance is expected to experience meaningful growth, reflecting the increasing interest of logistics companies in pursuing insurance-based products. The expansion of the Logistics Insurance Market can be attributed to the growth of the e-commerce industry and the expanding complexities in the logistics industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Logistics Insurance Market Policy Type Insights
The Logistics Insurance Market is segmented by Policy Type into Annual Policies, Single-Trip Policies, Open-Cargo Policies, and Warehouse Legal Liability Policies. In 2023, Annual Policies demonstrated the most significant market share of the Logistics Insurance Market revenue, which is estimated at about 45%. This type of policy is expected to maintain its dominant position over the forecast period. Annual Policies are becoming more popular among businesses that seek to ensure the constant protection of their logistics operations throughout the year. Single-Trip Policies are projected to demonstrate a comparatively high growth rate during the forecast period due to the constant demand for short-term options. Single-Trip Policies are often applied for particular shipments or events. Open-Cargo Policies provide coverage for more than one shipment and are relevant for businesses with multiple and ever-changing shipping requirements. Finally, Warehouse Legal Liability Policies have become increasingly popular due to businesses’ attempts to protect themselves from potential liabilities related to various accidents and damages. The Logistics Insurance Market is driven by the processes of globalization that affect trade and supply chain structures.
Logistics Insurance Market End-User Industry Insights
The End-User Industry segment plays a crucial role in shaping the market dynamics. Manufacturing: The manufacturing sector is a significant consumer of logistics insurance, accounting for around 28% of the market share in 2023. The rising demand for efficient and secure transportation of raw materials and finished goods has driven the growth in this segment. Retail and Wholesale Trade: The retail and wholesale trade segment holds a substantial market share of 22% and is projected to maintain its dominance in the coming years. The increasing volume of e-commerce transactions has necessitated robust logistics infrastructure and insurance coverage. Transportation and Logistics: The transportation and logistics industry itself utilizes logistics insurance to protect against risks associated with the movement of goods. This segment is expected to grow at a steady pace due to the expanding global supply chain network. Healthcare: The healthcare sector is witnessing a growing demand for specialized logistics insurance to ensure the safe and timely delivery of medical supplies and equipment. This segment is anticipated to account for 12% of the market share by 2032. Energy and Mining: The energy and mining sector relies heavily on logistics insurance to mitigate risks associated with the transportation and storage of hazardous materials. This segment is expected to grow at a moderate pace, driven by the increasing demand for energy resources. Construction: The construction industry requires logistics insurance to protect against risks related to the transportation and handling of heavy equipment and building materials. This segment is expected to contribute significantly to the overall market growth.
Logistics Insurance Market Shipment Mode Insights
The Logistics Insurance Market is segmented by Shipment Mode into Road Transportation, Air Transportation, Ocean Transportation, Rail Transportation, and Multimodal Transportation. Among these segments, Road Transportation is expected to hold the largest market share in 2023, accounting for over 40% of the Logistics Insurance Market revenue. This is primarily due to the increasing demand for road transportation services for both domestic and international trade. Air Transportation is another significant segment, with a market share of over 25% in 2023. The growth of e-commerce and the increasing demand for faster delivery times are driving the growth of this segment. Ocean Transportation is also a major segment, with a market share of over 20% in 2023. The increasing volume of international trade and the growing demand for cost-effective transportation options are driving the growth of this segment. Rail Transportation and Multimodal Transportation are expected to grow at a steady pace in the coming years, driven by factors such as the increasing demand for environmentally friendly transportation options and the need for efficient and cost-effective transportation solutions.
Logistics Insurance Market Regional Insights
The Logistics Insurance Market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East Africa. North America held the largest share of the market in 2023 and is expected to continue its dominance throughout the forecast period. The growth of the region can be attributed to the increasing trade volumes, stringent regulations, and growing awareness about logistics insurance. Europe is the second-largest region in the market and is expected to maintain its position during the forecast period. The growth of the region can be attributed to the presence of major logistics hubs, such as Rotterdam and Antwerp, and the increasing adoption of logistics insurance by businesses. Asia-Pacific is the fastest-growing region in the market and is expected to continue its growth trajectory during the forecast period. The growth of the region can be attributed to the rapid growth of the logistics industry, which is driven by the increasing e-commerce and manufacturing activities. South America and Middle East Africa are expected to witness steady growth in the market during the forecast period. The growth of these regions can be attributed to the increasing investment in infrastructure and the growing awareness of logistics insurance.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Logistics Insurance Market Key Players And Competitive Insights:
Major players in the Logistics Insurance Market industry are consistently striving to gain a competitive edge by investing in research and development. They are also focusing on strategic partnerships and acquisitions to expand their global reach and enhance their product portfolios. Leading Logistics Insurance Market players are constantly innovating to develop customized solutions that cater to the specific needs of the logistics industry. The development of the logistics insurance market is driven by the increasing demand for specialized insurance products tailored to the unique risks associated with logistics operations. A leading player in the Logistics Insurance Market, AXA XL offers a comprehensive range of insurance solutions designed to protect businesses against potential losses and liabilities throughout the supply chain. The company has a strong global presence and provides customized coverage for various logistics sectors, including transportation, warehousing, and distribution. AXA XL's expertise in risk management and claims handling enables it to provide tailored solutions that meet the evolving needs of the logistics industry.
Another major player in the Logistics Insurance Market, Zurich Insurance Group, provides a wide spectrum of insurance products and services for the logistics industry. The company's focus on innovation has led to the development of specialized insurance solutions that address the complex risks associated with logistics operations. Zurich Insurance Group's global network and strong financial stability allow it to offer customized coverage to businesses of all sizes, helping them navigate the challenges of the evolving logistics landscape.
Key Companies in the Logistics Insurance Market Include:
- Marsh McLennan
- Zurich Insurance Group
- Lockton Companies
- Allianz Global Corporate Specialty SE
- NFP
- Arthur J. Gallagher Co.
- HDI Global
- AIG
- BMS Group
- Hub International
- Liberty Mutual Insurance
- Willis Towers Watson
- AXA XL
- Chubb
- Aon
Logistics Insurance Industry Developments
The recent news developments and current affairs in the Logistics Insurance Market include the increasing demand for logistics insurance due to the rising volume of global trade, growing concerns over cargo theft and damage, and the complex regulatory landscape governing international logistics. Additionally, the rapid adoption of e-commerce and the expansion of global supply chains are driving the demand for specialized logistics insurance solutions. Furthermore, technological advancements such as telematics and blockchain are transforming the logistics industry and creating new opportunities for insurers to offer innovative risk management solutions.
Logistics Insurance Market Segmentation Insights
Logistics Insurance Market Coverage Type Outlook
- Cargo Insurance
- Freight Insurance
- Liability Insurance
- Marine Insurance
- Property Insurance
- Workers' Compensation Insurance
Logistics Insurance Market Policy Type Outlook
- Annual Policies
- Single-Trip Policies
- Open-Cargo Policies
- Warehouse Legal Liability Policies
Logistics Insurance Market End-User Industry Outlook
- Manufacturing
- Retail and Wholesale Trade
- Transportation and Logistics
- Healthcare
- Energy and Mining
- Construction
Logistics Insurance Market Shipment Mode Outlook
- Road Transportation
- Air Transportation
- Ocean Transportation
- Rail Transportation
- Multimodal Transportation
Logistics Insurance Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
11.35 (USD Billion) |
| Market Size 2023 |
11.84 (USD Billion) |
| Market Size 2032 |
17.3 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.31% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Marsh McLennan, Zurich Insurance Group, Lockton Companies, Allianz Global Corporate Specialty SE, NFP, Arthur J. Gallagher Co., HDI Global, AIG, BMS Group, Hub International, Liberty Mutual Insurance, Willis Towers Watson, AXA XL, Chubb, Aon |
| Segments Covered |
Coverage Type, Policy Type, End-User Industry, Shipment Mode, Regional |
| Key Market Opportunities |
Digitalization.Ecommerce.Supply chain disruptions.Climate change.Emerging markets. |
| Key Market Dynamics |
Rising trade volumes.Growing ecommerce.Increasing regulatory requirements.Complex supply chains.Technological advancements. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Logistics Insurance Market is expected to reach a market size of USD 17.3 billion by 2032, exhibiting a CAGR of 4.31% during the forecast period 2024-2032.
Asia Pacific is expected to dominate the Logistics Insurance Market. The region is experiencing rapid growth in the logistics industry, driven by factors such as increasing trade volumes, expanding manufacturing activities, and growing e-commerce.
The key growth factors driving the Logistics Insurance Market include increasing globalization of trade, growing demand for supply chain efficiency, and rising awareness of logistics risks.
The major applications of Logistics Insurance include protection against loss or damage to goods during transportation, coverage for liability in the event of accidents, and protection against financial losses due to delays or disruptions in the supply chain.
The key competitors in the Logistics Insurance Market include Allianz SE, AXA SA, Chubb Limited, Zurich Insurance Group, and AIG.
The COVID-19 pandemic had a significant impact on the Logistics Insurance Market, leading to disruptions in global supply chains and increased demand for logistics insurance coverage. The recovery from the pandemic is expected to drive further growth in the market.
The Logistics Insurance Market faces challenges such as increasing competition, regulatory changes, and the need for innovation to meet the evolving needs of the logistics industry.
Future trends expected to shape the Logistics Insurance Market include the adoption of digital technologies, increasing focus on sustainability, and the growing importance of risk management in the logistics industry.
The Logistics Insurance Market is expected to grow at a CAGR of 4.31% during the forecast period 2024-2032.
Key opportunities for growth in the Logistics Insurance Market include expanding into emerging markets, developing innovative products and services, and leveraging technological advancements.
