By Ryan Smith
The global logistics insurance market is predicted to hit US$70.46 billion by 2030, expanding at a compound annual growth rate of 2.8% between 2023 and 2030, according to a report by Grand View Research.
As e-commerce activities surge, logistics companies are handling a larger volume of shipments, the report found. This, in turn, increases the risk of loss or damage.
That increased risk makes logistics insurance a vital part of risk management, providing coverage for financial losses resulting from incidents that could occur during the transportation of goods, Grand View Research said.
Key findings from the report include:
The cargo insurance segment dominated the market last year.
“The adoption of cargo insurance is increasing owing to the various risks involved in the transportation of goods and cargo including theft, damage and loss, which can result in significant financial losses for logistics companies,” Grand View Research said.
According to a study by Verisk Analytics’ CargoNet, last year saw a 15% increase in the number of supply chain risk events. There were 1,778 such events in the US and Canada, and cargo theft rose by 20%. The total loss value for 2022 was US$223 million for the US and Canada alone.
The marine segment was also increasingly important, the study said.
“Marine transportation plays a crucial role in global trade by moving valuable commodities like oil, gas and raw materials,” Grand View Research said. “Therefore, marine cargo insurance is essential to safeguard the economic interests of stakeholders, including shippers, insurers, and other participants in the supply chain. This highlights the importance of insurance for the marine industry for preventing these losses and has led to the growth of the segment.”
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