Marine freight insurance is a type of insurance policy that protects marine freight from loss or damage happened during transportation. Marine cargo insurance is a type of property insurance that protects goods in transit from loss or damage caused by perils associated with sea or air navigation as well as land and inland waterways. It covers sea hazards (sinking, stranding, and collisions), fire, war hazards, pirates, thieves, capture, jettison, washing overboard as well as any other perils.Furthermore, third-party liabilities arising from any loss or damage caused by the insured cargo to the ship, port, or other modes of transportation are also covered by marine insurance. Moreover, tankers and other heavy freight shipments benefit the most from this type of insurance. In simple words, it can be said that the ship will be protected by a marine freight insurance policy during the transit. Therefore, the surge in demand for marine freight insurance is expected to boost the growth of the market in the coming period.
The Marine Freight Insurance market is segmented on the basis of Type , Coverage, End User ,and Region. Based on type, the market is divided into Open Marine Insurance Policy, Time Plan, Voyage Plan, Mixed Plan, Port Risk Plan, Valued Plan, Floating Plan and Wager Plan. In terms of Coverage, the market is categorized into Damage from Loading/Unloading, Bad Weather, Piracy and Other Risk. On the basis of End User, the market is divided into Ship Owners, Traders and Others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
COVID-19 Impact Analysis
Due to increased uncertainty and protectionism in global trade, shifting supply chain demands, and business closures across several industry verticals, the COVID-19 pandemic had a negative impact on the marine freight insurance market, which is expected to lower the demand for marine freight insurance.
Furthermore, to stop the virus from spreading, several regions have imposed a lockdown, resulting in geopolitical tensions and a rapid shift in trade patterns, which harmed businesses. As a result, the demand for marine freight insurance has plummeted during COVID-19.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
Rise in awareness for marine insurance and increased adoption of IoT in marine insurance are driving the growth of the market. In addition, increase in implementation of analytics &telematics that provides an ability to assess current & future risks in the marine industry is further propelling the growth of the market. However, imposition of lockdown across several countries has limited the growth of the market. On the contrary, developing economies adopting marine insurance to expand their operations can be perceived as an opportunity for the marine freight insurance market in the forecast period.
The marine freight insurance market trends are as follows:
Rise in awareness for marine insurance
The demand for marine freight insurance is increasing as it provides coverage against a wide range of risk measures and aids in the smooth operation of trade activities. Furthermore, shipowners, cargo owners, and charterers face significant losses due to massive marine business operations such as damage to ships, cargo vessels, and terminals.So, managing these risks and losses in the marine industry becomes extremely complicated, and maritime insurance plays a critical role in mitigating such losses. As a result, massive losses and higher cargo concentrations in warehouses, ports, and in transit are driving the global demand for marine freight insurance during the forecast period.
Increased adoption of IoT in marine insurance
Internet of things (IoT) systems are still being incorporated into existing marine insurance product lines by major players in the market. In addition, the internet of things aids in loss prediction & prevention, risk monitoring& claims processing.Insurers are also heavily investing in IoT to manage engine performance, CO2 emissions, navigation, and cargo supply chains, resulting in more streamlined marine insurance offerings. Furthermore, the incorporation of IoT benefits the marine freight insurance market by increasing demand.Therefore, increased adoption of IoT in marine freight insurance is driving the growth of the market during the forecast period.
Marine Freight Insurance Market Report Highlights
By End User
Key Market Players
Integro Group, Liberty Mutual Insurance, TIBA, Zurich, Samsung Fire and Marine Insurance Co Ltd, Atrium, Munich Re, Allianz, Chubb, Marsh