With the surge in e-commerce activities, logistics companies are handling a larger volume of shipments, and this increases the risk of loss or damage.
This makes logistics insurance an essential component of risk management, providing coverage against potential financial losses resulting from various incidents that may occur during the transportation of goods.
To that end, the global logistic insurance market size is expected to reach $70.46 billion by 2030, expanding at a CAGR of 2.8% from 2023 to 2030, according to a new report by Grand View Research, Inc.
Key Industry Insights & Findings from the report:
- The cargo insurance segment dominated the market in 2022. The adoption of cargo insurance is increasing owing to the various risk involved in the transportation of goods and cargo including theft, damage, and loss which can result in significant financial losses for logistics companies. According to a study by Verisk Analytics' CargoNet, in 2022 there was a 15% increase in the number of supply chain risk events, which reached 1,778 across the U.S. and Canada and cargo theft rose by 20%. The total loss value for the year 2022 in U.S. and Canada was USD 223 million.
- The marine segment dominated the market in 2022. Marine transportation plays a crucial role in global trade by moving valuable commodities like oil, gas, and raw materials. Therefore, marine cargo insurance is essential to safeguard 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 for preventing these losses and has led to the growth of the segment.
- The enterprises segment dominated the market in 2022. The dominance of the segment can be attributed to enterprises' significant volume of shipments and valuable cargo, which exposes them to higher risks 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. Additionally, Europe has a high concentration of multinational corporations that have extensive supply chains and require comprehensive insurance coverage, creating significant demand for logistics insurance.
