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, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 62.92 Billion
CAGR (2026-2031)	4.63%
Fastest Growing Segment	Marine Services Liability
Largest Market	North America
Market Size (2031)	USD 82.55 Billion

Market Overview

The Global Logistics Insurance Market will grow from USD 62.92 Billion in 2025 to USD 82.55 Billion by 2031 at a 4.63% CAGR. Logistics insurance mitigates financial risks for service providers and cargo owners by covering goods in transit, storage, and associated liabilities across marine, air, and land transportation. The market's growth is fundamentally supported by the expansion of international trade volumes and the burgeoning global e-commerce sector, which necessitate robust protection for high-value supply chains. Additionally, stricter regulatory mandates regarding liability and a growing recognition of operational vulnerabilities drive the adoption of comprehensive coverage, ensuring that logistics companies can maintain resilience against unforeseen transit losses or legal claims.

However, the sector encounters substantial impediments arising from geopolitical instability and increasing supply chain disruptions, which complicate risk modeling and inflate claim costs. These unpredictable elements create volatility that can deter affordable coverage in high-risk regions. Highlighting the sector's continued financial significance, according to the International Union of Marine Insurance, in 2025, the global marine insurance premium base for 2024 totaled USD 39.92 billion, marking a 1.5% increase from the prior year. This statistic evidences the market's steady expansion even as insurers navigate a complex landscape of emerging global threats.

Key Market Drivers

The rising frequency of cargo theft and security breaches serves as a critical driver, necessitating specialized insurance mechanisms to protect against escalating financial losses. Modern supply chains face sophisticated threats, including strategic cargo pilferage and fictitious pickups, which standard liability terms often fail to address adequately. Consequently, freight forwarders and carriers are compelled to purchase broader risk transfer solutions to safeguard against high-value asset loss and maintain client trust. Highlighting this trend, according to CargoNet, January 2024, in the '2023 Annual Cargo Theft Report', recorded theft incidents in the United States and Canada increased by 59% in 2023 compared to the previous year. This surge in criminal activity directly correlates with increased premiums and a higher uptake of policies designed to mitigate the impact of stolen goods on operational margins.

Simultaneously, the expansion of international trade and global commerce fundamentally underpins market growth by amplifying the volume and value of goods requiring transit coverage. As cross-border transactions multiply, logistics providers encounter heightened exposure to multimodal risks, ranging from physical damage during handling to catastrophic losses at sea. This accumulation of risk drives the necessity for marine and transit insurance to ensure business continuity and facilitate financing. According to the World Trade Organization, April 2024, in the 'Global Trade Outlook and Statistics', the volume of world merchandise trade is expected to grow by 2.6% in 2024, signaling a rebound in cargo movement. Further emphasizing the necessity of this coverage amidst growing trade activity, according to Allianz Commercial, in 2024, 26 large vessels were reported as total losses globally during the preceding year, demonstrating the critical need for financial protection against major transit casualties.

Download Free Sample Report

Key Market Challenges

Geopolitical instability and increasing supply chain disruptions significantly impede the Global Logistics Insurance Market by introducing unpredictable volatility that complicates accurate risk assessment. When trade routes are compromised by regional conflicts or political tension, insurers struggle to model potential losses effectively, often leading to a retraction of underwriting capacity in high-risk zones. This uncertainty forces providers to impose prohibitive premiums or completely exclude coverage for volatile corridors, thereby limiting the market's addressable client base and stifling potential revenue growth in key international logistics channels.

These disruptions also manifest as tangible operational threats, such as cargo theft and transit interruptions, which directly inflate claim ratios and erode underwriting profitability. Illustrating the financial magnitude of these vulnerabilities, according to the Transported Asset Protection Association, in 2025, the organization reported that recorded cargo crimes in the EMEA region alone resulted in product losses exceeding €2.7 billion over the recent three-year analysis period. Such elevated loss figures compel insurers to tighten policy terms and increase deductibles, ultimately reducing the affordability and attractiveness of logistics insurance products for cost-sensitive shippers.

Key Market Trends

The Adoption of Parametric Insurance for Supply Chain Disruption is transforming risk management by providing rapid payouts based on predefined triggers like weather metrics or port delays. Unlike traditional indemnity policies that require lengthy loss adjustments, this model utilizes objective data to offer logistics providers immediate liquidity during non-damage business interruptions. This mechanism is increasingly critical for maintaining operational continuity against climate-induced volatility. Illustrating the robust market uptake, according to The Insurer, February 2025, in the article 'Parametric specialist Descartes exceeded $200 million GWP in 2024', Descartes Underwriting grew its gross written premiums to more than USD 200 million in 2024. This substantial growth evidences the increasing reliance on data-driven solutions to ensure financial resilience against unpredictable transit hazards.

Simultaneously, the Integration of Embedded Insurance into Digital Freight Platforms is streamlining distribution by inserting coverage options directly into booking APIs. This approach allows shippers to secure transactional cargo insurance instantly at the point of sale, effectively closing the protection gap for small and medium-sized enterprises that often forego complex standalone policies. The seamless embedding of risk transfer into logistics workflows significantly enhances user adoption rates. Demonstrating the model's rapid expansion, according to Reinsurance News, May 2024, in the article 'Cover Genius secures $80m in Series E Funding', the embedded insurtech firm Cover Genius achieved 107% year-on-year growth in 2023. This trajectory signals a structural shift where insurance becomes an automated, essential feature of the modern digital supply chain.

Segmental Insights

Marine Services Liability currently represents the fastest growing segment within the Global Logistics Insurance Market due to heightened regulatory pressures and expanding international trade volumes. Port authorities and terminal operators increasingly require comprehensive coverage to mitigate rising operational and third-party risks. Specifically, stricter environmental and safety standards established by the International Maritime Organization compel logistics providers to secure robust liability protection against pollution and accident-related claims. Consequently, the rising necessity for compliance and risk management in maritime operations directly accelerates the demand for this specific insurance category.

Regional Insights

North America maintains a leading position in the Global Logistics Insurance Market due to the substantial volume of cargo movement across its borders and extensive inland transportation networks. This market dominance is primarily supported by a stringent regulatory framework that mandates comprehensive liability coverage for transport operators. Notably, the Federal Motor Carrier Safety Administration (FMCSA) in the United States enforces rigorous financial responsibility standards, compelling logistics service providers to secure adequate insurance. Consequently, high compliance requirements and established trade activities create a steady demand for marine, aviation, and transit insurance policies throughout the region.

Recent Developments

• In April 2025, Progressive Insurance launched "Cargo Plus," an enhanced endorsement for its motor truck cargo coverage aimed at for-hire truckers in the Global Logistics Insurance Market. This new product expanded protection to include perils such as rust, wetness, and corrosion, as well as damages attributed to driver error or temperature changes for refrigerated loads. The endorsement was made available to new and existing policyholders, with plans to roll out across most states by mid-year. This product launch was designed to provide broader financial security for transport professionals, ensuring they could meet the rigorous demands of brokers and shippers in a competitive logistics market.
• In September 2024, Marsh and Tokio Marine Kiln formed a strategic collaboration to launch a new port disruption insurance facility for the Global Logistics Insurance Market. This partnership introduced a product designed to cover business interruption losses resulting from trade disruptions, including blockades and geopolitical unrest affecting ports. The facility offered coverage limits up to $50 million per incident, available to ports and terminals globally without geographical restrictions. This initiative addressed the increasing demand for protection against non-physical damage risks that threaten global supply chains, providing a crucial financial safety net for maritime infrastructure operators facing volatile trade environments.
• In May 2024, Allianz Commercial released its annual Safety and Shipping Review, providing breakthrough research on global shipping losses and safety trends relevant to the Global Logistics Insurance Market. The report highlighted that while total vessel losses had reached record lows, the industry faced growing volatility from geopolitical conflicts and climate change. The study analyzed the impact of drought conditions in the Panama Canal and attacks on shipping in the Red Sea, noting these factors caused significant supply chain disruptions. The insurer emphasized that despite improvements in traditional safety metrics, the maritime sector required renewed focus on emerging risks to maintain resilience.
• In February 2024, Loadsure launched "Columbia," a new data-driven insurance product specifically tailored for small and medium-sized enterprises within the Global Logistics Insurance Market. This managing general agent designed the coverage to protect freight brokers, motor carriers, and freight forwarders against risks such as cargo damage. The policy included comprehensive protections for business personal property, debris removal, and contractual penalties. By utilizing automated underwriting and granular data analysis, the company aimed to empower insurance brokers to serve logistics clients more efficiently. This launch addressed the specific needs of smaller operators seeking comprehensive transit liability and cargo protection in a digital-first environment.

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

By Coverage Type	By Industry	By Shipment Mode	By Region
Cargo Insurance Marine Services Liability	Transportation Marine	Road Transportation Air Transportation Ocean Transportation Rail Transportation Multimodal Transportation	North America Europe Asia Pacific South America Middle East & Africa

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:

• Cargo Insurance
• Marine Services Liability

• Logistics Insurance Market, By Industry:

• Transportation
• Marine

• Logistics Insurance Market, By Shipment Mode:

• Road Transportation
• Air Transportation
• Ocean Transportation
• Rail Transportation
• Multimodal Transportation

• Logistics Insurance Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE