Marine Insurance Market Size

Marine Insurance Market Size

Marine Insurance Market was valued at USD 30.2 billion in 2023 and is estimated to register a CAGR of over 4% between 2024 and 2032. The growth in international trade and the adoption of sea transportation as a major carrier for goods drives the demand for marine insurance. It mitigates risks by providing financial protection against events such as physical damage, losses, and delays.

Furthermore, the rise in frequency and severity of natural disasters, such as hurricanes and floods, has increased the risk exposure of marine vessels and cargo, driving demand for more robust insurance solutions. More frequent and intense natural disasters lead to a higher number of claims being filed with marine insurance companies. These claims can cover damage to ships, cargo loss due to sinking or harsh weather, and disruptions in shipping schedules. As insurers pay out on these claims, it fuels the growth of the market.
 

Fraudulent claims such as cargo misrepresentation, staged losses, fake documentation and the difficulties in assessing and verifying legitimate claims pose significant challenges to insurers. In addition, investigating marine insurance claims can be complex and time-consuming, especially for internationally traded goods. It often requires cooperation between law enforcement agencies in different countries. Fluctuations in the shipping and freight markets due to geopolitical tensions, economic downturns, or trade disruptions can affect the volume of goods transported and, consequently, the demand for marine insurance.
 

Further, in case of the entire shipping market experiencing a downturn, there is a higher chance of a larger number of claims being filed simultaneously. This can strain the financial resources of insurance companies, especially if they have not adequately diversified their risk pool, thus hampering the market growth.