Cargo Insurance Market: Introduction
- Cargo insurance, also known as freight insurance, is an absolute necessity when it comes to protection of shipment while in transit. Cargos can be exposed to several risks including natural perils, road accidents, damages, theft, and improper stowage by the carrier. Cargo insurance is an option to protect shipments from physical damage; insuring cargo ensures that the value of goods are protected against potential losses which may occur during air, sea, or land transportation. The movement of goods around the world entails some risks. These risks are mitigated through insurance coverage since there is no guarantee that damage or loss will not occur.
Key Drivers of the Global Cargo Insurance Market
- Increasing demand and awareness about cargo insurance among ship owners, cargo owners, and charterers who can face huge losses such as damage caused to ships, cargo vessels, and terminals, is a major factor that propels the growth of the cargo insurance market.
- Rapid growth in incorporation of IoT, which helps in risk monitoring, facilitates loss prediction & prevention, and simplifies claims processing is projected to boost growth of the cargo insurance market in the coming years.
- Rising demand for marine insurance is because it offers coverage against a wide range of risk measures and helps in the smooth functioning of trade activities. As per Uniglobal, a leading knowledge sharing institution, nearly 85% of global trade is carried by sea and tons of cargo ships are active in operations, largely contributing to the global economy.
- Additionally, cargo owners, ship owners, and charterers face huge losses such as damage to ships, cargo vessels, and terminals due to the massive marine business operations. Thus, cargo insurance plays a vital role in overcoming such losses as managing these risks & losses in the marine business becomes very complex. This is expected to propel the demand for cargo insurance globally.
Factor Restraining the Global Cargo Insurance Market
- Fluctuations and sudden rise in insurance premiums is a factor that can limit the growth of the cargo insurance market.
Market in Asia Pacific to Expand Rapidly
- In terms of region, the global cargo insurance market can be divided into North America (NA), Europe (EU), Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SA)
- North America country-level analysis features the U.S., Canada, and Rest of North America. Analysis and forecast of the cargo insurance market in Europe includes markets across the U.K., Germany, France, and Rest of Europe. Similarly, Asia Pacific includes India, China, Japan, and Rest of Asia Pacific. Middle East & Africa includes the cargo insurance market analysis and forecast of GCC countries, South Africa, and Rest of Middle East & Africa. The South America cargo insurance market is segmented into Brazil, and Rest of South America.
- North America accounted for largest share of the global cargo insurance market owing to a growing shipping industry in the region. Growing import and export industry and rising sea transportation are prime factors driving the growth of the cargo insurance market in North America.
- The cargo insurance market in Asia Pacific is projected to expand rapidly during the forecast period due to the rising cargo transportation in the region. Emerging economies offer significant opportunities for marine insurers to expand & develop their offerings, especially in countries such as China, India, Australia, Singapore, and South Korea, which is expected to fuel the growth of the cargo insurance market in the region.
Key Players Operating in the Global Market
Providers in the cargo insurance market are focusing on becoming more proficient and working toward offering extra coverage and minimum premium which will enhance their competitive advantage and their market share globally. Furthermore, insurance companies are investing heavily in IoT to manage engine performance, CO2 emissions, and navigation & cargo supply chains, which accelerates streamlined offerings of cargo insurance.
A few of the key players operating in the global cargo insurance market are:
- American International Group, Inc.
- Aon plc
- Arthur J. Gallagher & Co.
- Lockton Companies
- Marsh LLC
- Zurich Insurance Group Ltd.
Global Cargo Insurance Market: Research Scope
Global Cargo Insurance Market, by End-use
- Ship Owners
- Cargo Owners
- Others (Charterers, etc.)
Global Cargo Insurance Market, by Sales Channel
- Direct Sales
- Indirect Sales
Global Cargo Insurance Market, by Region
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
The report on the global cargo insurance market is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macroeconomic indicators, and governing factors, along with market attractiveness as per segments. The report also maps the qualitative impact of various factors on market segments and regions.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.