The global marine insurance market size is estimated to grow by $5.41 billion between 2024 and 2028, according to Technavio market research report.
The market is estimated to grow at a compound annual growth rate (CAGR) of about 3.32% during the forecast period.
According to the report, the use of multiple distribution channels is driving market growth, with a trend towards an increase in mergers and acquisitions (M&A) and collaborations.
The report, however, noted that low profitability poses a challenge, adding that key market players include Allianz SE, American International Group Inc., Aon plc, Arthur J. Gallagher and Co., Atrium Underwriters Ltd., AXA Group, Beazley Plc, among others.
The report noted that the marine insurance market is experiencing intensified competition due to the influx of new providers and moderate industry growth.
It added that to expand their sales and enhance global reach, major players are acquiring smaller vendors through mergers and partnerships.
According to the report, these deals contribute significantly to the market’s growth during the forecast period.
“The marine insurance market experiences continuous growth with various components playing significant roles.
Exports and imports require reliable shipping, leading to a high demand for coverage. Carriers and owners need protection against potential losses, such as damage to vessels or cargo.
Commerce and commerce require efficient logistics, driving the need for specialized marine insurance policies,” it said.
The report highlighted that shipping companies and ports handle large volumes, necessitating comprehensive coverage.
It noted that collision, overturn, and fire risks are common concerns, making insurance vital for risk management.
It added that claims can be costly, so having a solid insurance policy is essential for businesses in the maritime industry.
“Marine insurance covers various aspects, including hull and machinery, cargo, liability, and protection and indemnity.
The market is dynamic, with new risks emerging, such as cyber threats and environmental concerns,” it noted.
The report noted that the industry responds with innovative solutions, like digital platforms and advanced risk assessment tools, to cater to evolving needs adding that marine insurance remains a crucial aspect of global trade, ensuring businesses can operate with confidence.
According to the report, in the Marine Insurance Market, emerging regions like APAC exhibit robust demand, drawing numerous domestic and international suppliers.
However, profitability for suppliers remains low due to decreasing premiums, intensifying competition. Existing policies and weak European demand lead to increased overheads, outpacing GWP growth, and compressing profit margins. These factors may hinder market expansion during the forecast period.
The report noted that the marine insurance market faces several challenges in today’s dynamic business environment adding that shipping operations and trade require significant investment and involve various risks.
“Risks such as damage to vessels, cargo loss, piracy, and cybersecurity threats are common in this industry. Climate change and increasing regulations also add to the complexity.
Climate-related risks, like extreme weather events and rising sea levels, can cause significant damage to ships and ports.
Regulations, like the International Maritime Organization’s (IMO) 2020 sulfur cap, require substantial investments in new technologies,” it said.
The report noted that marine insurers must adapt to these challenges by offering innovative solutions and effective risk management strategies adding that they must also stay updated on the latest regulations and trends to provide comprehensive coverage to their clients.
