Logistics Insurance Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Coverage Type (Cargo Insurance, Marine Services Liability), By Industry (Transportation, Marine), By Shipment Mode (Road Transportation, Air Transportation, Ocean Transportation, Rail Transportation, Multimodal Transportation), By Region & Competition, 2020-2030F

Market Overview

Global Logistics Insurance Market was valued at USD 60.89 billion in 2024 and is expected to reach USD 80.10 billion by 2030 with a CAGR of 4.52% during the forecast period. The logistics insurance market encompasses the range of insurance policies designed to protect businesses involved in the transportation, storage, and distribution of goods from financial losses due to various risks and uncertainties. This includes coverage for cargo damage, theft, natural disasters, delays, and liability during the movement of goods across domestic and international supply chains. Logistics insurance is critical for freight forwarders, logistics service providers, manufacturers, exporters, importers, and retailers who rely on efficient and secure delivery of goods to maintain business continuity and customer satisfaction. The market is influenced by the complexity of global trade, which often involves multimodal transportation systems, including road, rail, sea, and air freight. Policies are tailored to meet specific industry needs, covering diverse areas such as marine insurance, inland transit insurance, and warehousing insurance. The rise of e-commerce, globalization of trade, and just-in-time delivery systems have heightened the demand for comprehensive logistics insurance solutions that can address the evolving risks in supply chain operations. Additionally, advancements in technologies like IoT, GPS tracking, and blockchain have enabled real-time monitoring and risk assessment, enhancing the efficiency and reliability of logistics insurance products. Regulatory frameworks and compliance requirements in different regions also play a pivotal role in shaping the offerings and adoption of logistics insurance policies. As businesses prioritize risk mitigation strategies to safeguard against financial setbacks, the logistics insurance market continues to evolve, providing innovative products and services to meet the dynamic needs of a globalized economy.

Key Market Drivers

Increasing Complexity of Global Supply Chains

The expanding complexity of global supply chains is a significant driver for the logistics insurance market. Businesses are increasingly sourcing raw materials and finished goods from geographically diverse regions, involving a web of transportation modes, routes, and intermediaries. This interconnectedness heightens the vulnerability to risks such as cargo theft, damage, delays, and geopolitical disruptions, emphasizing the necessity of logistics insurance. Furthermore, the rise of just-in-time (JIT) inventory practices, aimed at reducing warehousing costs, increases reliance on seamless supply chain operations. Any disruption in this intricate system can lead to substantial financial losses, pushing companies to seek robust insurance policies. Regulatory frameworks across regions also play a critical role, with mandatory insurance requirements for certain industries or cross-border trades acting as a catalyst for market growth. Additionally, the advent of digital platforms for supply chain management has improved risk identification and reporting, enabling insurers to offer more tailored products. For instance, predictive analytics tools powered by AI allow businesses to anticipate potential delays or disruptions, providing a framework for customized insurance policies that meet specific needs. The e-commerce boom further amplifies these dynamics, with a surge in demand for fast and reliable shipping creating additional pressure on logistics networks. Consequently, insurers are innovating to offer dynamic products such as parametric insurance, which provides quick payouts based on predefined triggers. This evolving ecosystem underscores the critical role of logistics insurance as a safeguard against mounting complexities in the global supply chain. Average lead times for global supply chains can range from 30 to 120 days, depending on the product and shipping routes. The pandemic caused a significant increase in delays, with some shipments facing lead times of 6 months or longer.

Rising Incidences of Cargo Theft and Damage

The logistics insurance market is being propelled by the growing frequency of cargo theft and damage incidents, which are becoming significant pain points for global trade. According to industry reports, billions of dollars are lost annually due to these risks, with high-value goods such as electronics, pharmaceuticals, and luxury items being prime targets. The rise in such incidents is attributed to factors such as insufficient security measures during transit, inadequate monitoring technologies, and increased sophistication of criminal networks. This trend is further exacerbated by the growth of high-speed logistics, where stringent time constraints sometimes compromise safety protocols. The prevalence of extreme weather conditions due to climate change has also introduced new risks, such as floods, hurricanes, and other natural disasters, increasing the likelihood of cargo damage. As a result, businesses are turning to logistics insurance to mitigate financial exposure and ensure continuity. Additionally, the emergence of cold chain logistics for temperature-sensitive goods like vaccines and perishables requires specialized insurance solutions to cover potential damages due to temperature excursions. Insurers are responding to this demand with policies tailored to specific risks, including coverage for physical loss, contamination, and temperature variations. The development of advanced tracking and IoT-enabled sensors is further enhancing the industry's capability to assess and manage risks in real time, fostering greater confidence among stakeholders. The increasing vulnerability to theft and damage, coupled with the rising sophistication of mitigation tools, positions logistics insurance as an indispensable component of modern supply chain strategies. In the United States, the frequency of cargo theft incidents has been on the rise. The Transported Asset Protection Association (TAPA) reported that in 2022, there were 1,000+ cargo theft incidents recorded in North America alone, a significant increase from previous years.

Regulatory Requirements and Trade Agreements

Regulatory mandates and international trade agreements significantly drive the logistics insurance market, as businesses operating in global markets must comply with stringent insurance requirements. Many countries have implemented laws mandating insurance coverage for cargo in transit to protect stakeholders against unforeseen losses. For instance, marine insurance is often a prerequisite for cross-border trade, ensuring financial protection against risks such as piracy, accidents, and natural calamities. Similarly, regional trade agreements like the European Union’s customs regulations necessitate compliance with specific insurance standards, fostering the adoption of logistics insurance. The implementation of free trade agreements (FTAs) and trade facilitation measures in emerging economies has further expanded global trade volumes, necessitating adequate risk mitigation strategies. Additionally, the rising focus on sustainability and environmental compliance in logistics has led to regulations addressing the impact of supply chain activities, indirectly influencing the demand for insurance solutions that cover environmental liabilities. Digital trade agreements are also shaping the logistics landscape, integrating insurance policies as part of smart contract executions and blockchain-enabled transactions. These evolving frameworks encourage businesses to adopt comprehensive insurance coverage to ensure compliance and mitigate financial risks associated with non-adherence. Moreover, the harmonization of insurance regulations across regions simplifies international transactions and fosters market growth by providing businesses with a standardized approach to risk management. As global trade and regulatory frameworks evolve, the logistics insurance market is poised for sustained growth, driven by the need for compliance and financial security.

Download Free Sample Report

Key Market Challenges

High Complexity in Risk Assessment and Underwriting Processes

The logistics insurance market faces significant challenges due to the inherent complexity involved in risk assessment and underwriting. Logistics operations are characterized by a high degree of variability, with factors such as the type of goods being transported, modes of transportation, routes, geopolitical risks, and environmental conditions all contributing to the risk profile. Insurers often struggle to gather accurate and comprehensive data to evaluate these multifaceted risks effectively. For instance, perishable goods like food and pharmaceuticals are susceptible to temperature fluctuations, while high-value cargo such as electronics or luxury items is more prone to theft. Furthermore, geopolitical tensions, including trade restrictions, political instability, or war zones, exacerbate risk unpredictability. As a result, insurers must rely on sophisticated models and technologies to assess these risks, which can be both time-consuming and costly. This complexity often leads to higher premiums, which may deter logistics operators from purchasing insurance. Additionally, the increasing adoption of multimodal transportation amplifies the challenge, as each mode—whether air, sea, or road—introduces unique risks and liabilities. Insurers must navigate jurisdictional differences in laws and regulations, further complicating underwriting practices. The difficulty in accurately pricing policies without significant overestimation or underestimation creates a barrier to profitability for insurers while eroding customer confidence in the market. To mitigate this challenge, insurers must invest heavily in advanced analytics, artificial intelligence, and blockchain technologies to enhance transparency and precision in underwriting, a transition that requires substantial financial and operational resources.

Rising Fraudulent Claims and Lack of Industry Standardization

The logistics insurance market is increasingly plagued by fraudulent claims and the lack of standardized practices, which significantly hampers market efficiency and trust. Fraudulent activities, including falsified documentation, exaggerated loss claims, and staged incidents, are becoming more sophisticated, making detection and prevention an uphill battle for insurers. This issue is particularly prevalent in cross-border logistics, where the involvement of multiple intermediaries such as freight forwarders, customs brokers, and transport companies complicates the tracking and verification process. Fraud not only inflates operational costs for insurers but also leads to higher premiums for genuine customers, creating a ripple effect that diminishes the market's attractiveness. Compounding this issue is the lack of global standardization in terms of policies, coverage definitions, and claims processing procedures. Different regions operate under varying legal frameworks, which leads to inconsistencies in how claims are evaluated and settled. For example, some countries might mandate liability caps for certain types of cargo, while others leave it to contractual discretion, creating a patchwork of rules that insurers must navigate. This fragmented landscape discourages smaller logistics players from engaging with insurance providers, as they may find the process overly burdensome and opaque. Moreover, digital transformation across the logistics sector, while beneficial, has introduced vulnerabilities to cyber risks, including data breaches and ransomware attacks targeting shipment tracking systems. These emerging risks further complicate fraud management and require insurers to develop innovative cyber insurance products alongside traditional offerings. Addressing these challenges necessitates a concerted effort to establish global industry standards and leverage digital tools like blockchain for transparent and immutable record-keeping, ensuring a more trustworthy and efficient logistics insurance ecosystem.

Key Market Trends

Rising Demand for Customized and Comprehensive Insurance Solutions

The logistics insurance market is experiencing growing demand for tailored and comprehensive policies as businesses seek greater flexibility and coverage to address complex global supply chain risks. Logistics companies increasingly require insurance solutions that adapt to their specific operations, whether they involve multimodal transport, high-value goods, or sensitive shipments. This trend is fueled by the diverse risks that modern supply chains face, including geopolitical tensions, cyberattacks, climate change, and regulatory changes. Comprehensive policies that combine traditional coverage, such as cargo damage or theft, with emerging risks like cyber liability and environmental hazards, are becoming essential. Insurers are responding to this demand by collaborating closely with logistics providers to design bespoke policies that cover end-to-end supply chain operations. This approach often involves dynamic pricing models that adjust premiums based on real-time risk assessments and data inputs, offering greater value to insured parties. The shift toward customization also aligns with the growing emphasis on sustainability in the logistics industry. Many insurers are now incorporating environmental risk factors into their policies and offering coverage for green logistics initiatives, such as electric vehicle fleets or carbon offset programs. This trend not only addresses the unique challenges faced by logistics companies but also supports their broader strategic goals, ensuring that insurance becomes a strategic partner in managing risks rather than a mere financial safeguard. The global market for supply chain insurance is projected to grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2028, driven by the increasing need for businesses to safeguard against supply chain risks, including disruptions, theft, and damage.

Growing Importance of Emerging Markets

Emerging markets are becoming a significant driver of growth for the logistics insurance industry as globalization continues to expand trade routes and supply chains into developing regions. Countries in Asia, Africa, and Latin America are witnessing robust economic growth, leading to increased cross-border trade and infrastructure development. As businesses expand into these regions, the demand for logistics insurance grows, driven by heightened exposure to risks such as theft, infrastructure inadequacies, and regulatory complexities. Insurers are capitalizing on this trend by establishing local operations, forming partnerships with regional players, and offering products tailored to the unique challenges of these markets. For instance, policies designed for emerging markets often address risks associated with less-developed transport networks or fluctuating regulatory environments. The rise of e-commerce in these regions also plays a pivotal role, with logistics companies requiring insurance to safeguard their operations in rapidly growing but volatile markets. Additionally, global initiatives such as China's Belt and Road Initiative (BRI) are spurring infrastructure investment and trade, further amplifying the need for robust logistics insurance solutions. Insurers are also leveraging digital technologies to penetrate these markets more effectively, offering mobile-first platforms that cater to the high smartphone penetration rates in developing economies. As emerging markets continue to integrate into global trade networks, their importance in shaping the future of the logistics insurance market cannot be overstated.

Segmental Insights

Coverage Type Insights

The Cargo Insurance segment held the largest Market share in 2024. The growth of the logistics insurance market, particularly in the cargo insurance segment, is being driven by several key factors. The increasing globalization of trade has resulted in heightened cross-border movement of goods, necessitating robust insurance solutions to mitigate financial risks associated with the transportation of cargo. Businesses are striving to protect themselves against losses due to theft, damage, or unforeseen events during transit, creating a strong demand for cargo insurance. Additionally, the rise of e-commerce and just-in-time supply chain models has amplified the need for expedited and secure cargo transportation, further elevating the importance of comprehensive insurance coverage. The adoption of multimodal transport systems, including sea, air, and road logistics, presents complex risks, encouraging shippers and logistics providers to seek tailored insurance policies.

Furthermore, regulatory requirements mandating minimum insurance coverage for goods in transit across various regions are bolstering the adoption of cargo insurance. Advancements in digital technology are also transforming the cargo insurance landscape. Insurers are leveraging real-time tracking, blockchain, and IoT-based monitoring systems to enhance transparency, risk assessment, and claims processing, making insurance solutions more appealing to stakeholders. Emerging markets in Asia-Pacific and Africa, experiencing rapid industrialization and trade expansion, are also contributing significantly to the segment’s growth as exporters and importers increasingly recognize the value of protecting goods against transit-related uncertainties. Additionally, climate change and the rising incidence of natural disasters have heightened the perceived risk of damage to goods, driving businesses to secure cargo insurance to mitigate potential losses. Insurers offering flexible policies, value-added services, and competitive premium structures are gaining traction, while innovations such as parametric insurance models are simplifying claims processes and improving customer satisfaction. Altogether, these factors underscore the pivotal role of cargo insurance in ensuring the smooth and secure flow of goods in an increasingly interconnected global economy.

Download Free Sample Report

Regional Insights

North America region held the largest market share in 2024. The logistics insurance market in North America is driven by the region's robust growth in trade activities, which necessitates comprehensive risk management solutions for the transportation and storage of goods. The rise in e-commerce, with its high demand for timely and secure delivery, has amplified the need for tailored insurance policies to cover cargo loss, theft, or damage. Additionally, North America’s extensive and complex supply chain network, characterized by multimodal transportation, increases exposure to risks, making insurance a critical component for businesses to mitigate financial losses. Government regulations mandating liability coverage for freight carriers also encourage the adoption of logistics insurance, ensuring compliance and risk management across the supply chain. Innovations in insurance technology, such as real-time risk monitoring and blockchain-based policy management, are transforming the logistics insurance landscape, offering streamlined processes and enhanced transparency.

Moreover, the increasing frequency of natural disasters, such as hurricanes and wildfires, poses significant threats to goods in transit or storage, driving the need for comprehensive insurance coverage. Growing awareness among small and medium-sized enterprises (SMEs) about the benefits of logistics insurance is also contributing to market growth, as these businesses seek to safeguard their operations against potential disruptions. Furthermore, the rise in cross-border trade, particularly with Canada and Mexico under agreements like the United States-Mexico-Canada Agreement (USMCA), has heightened the demand for international logistics insurance policies. The market is also fueled by the expansion of third-party logistics (3PL) providers, which rely on insurance solutions to enhance their service offerings and ensure customer trust. As companies increasingly prioritize sustainability, the insurance sector is innovating to cover green logistics initiatives, addressing risks associated with new technologies and eco-friendly practices. Overall, the interplay of technological advancements, regulatory requirements, and evolving risk factors underscores the growing importance of logistics insurance in North America, making it an indispensable aspect of the region’s supply chain ecosystem.

Recent Developments

• In October 2024, Tint, a prominent player in the embedded insurance sector, has reported significant growth across three key verticals—mobility, home-sharing, and transportation & logistics—by offering tailored embedded insurance solutions that meet evolving market needs. With over six years of experience, Tint has partnered with leading startups such as Deel, uShip, and Neighbor, providing insurance protection to hundreds of thousands of customers and generating substantial premium revenues. 
• In August 2024, Workforce Insurance Underwriters (WIU), a managing general agent (MGA) and wholesale insurance broker specializing in the unique needs of the trucking industry, introduced two new insurance products on the Joshu platform. This launch represents a major advancement in WIU’s digital distribution capabilities. 
• In September 2024, Sompo, a prominent global provider of commercial and consumer property and casualty (re)insurance, unveiled a new national marine insurance offering in the United Kingdom (UK). This marks the first time the insurer will be able to write Marine Cargo and Transport & Logistics policies across the UK, extending beyond London. Sompo’s Marine Cargo UK policy and its Transport & Logistics offerings are designed to deliver clear, straightforward coverage, targeting brokers and clients throughout the UK.

Key Market Players

• Specialty Program Group LLC
• American International Group, Inc.
• Allianz SE
• Schenker AG
• United Parcel Service, Inc.,
• Thomas Miller & Co Ltd.
• AsstrA-Associated Traffic AG
• HDI Global SE

Report Scope:

In this report, the Global Logistics Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Logistics Insurance Market, By Coverage Type:

o   Cargo Insurance

o   Marine Services Liability

• Logistics Insurance Market, By Industry:

o   Transportation

o   Marine  

• Logistics Insurance Market, By Shipment Mode:

o   Road Transportation

o   Air Transportation

o   Ocean Transportation

o   Rail Transportation

o   Multimodal Transportation  

• Logistics Insurance Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Logistics Insurance Market.

Available Customizations:

Global Logistics Insurance Market report with the given Market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional Market players (up to five).

Global Logistics Insurance Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]