Asia-Pacific leads in marine insurance market share with 28%

Thanks to expanding manufacturing sector and increasing maritime trade.

The global marine insurance market is seen to reach a compound annual growth rate (CAGR) of 4% from 2024 to 2032, according to Global Market Insights.

The sector was valued at $30.2b in 2023. This growth is driven by the expansion of international trade and the increased use of sea transportation for goods, which necessitates financial protection against risks such as physical damage, losses, and delays.

The rising frequency and severity of natural disasters, including hurricanes and floods, have heightened the risk exposure of marine vessels and cargo, leading to more robust insurance demand. Insurers face a growing number of claims related to ship damage, cargo loss, and shipping schedule disruptions, which contribute to market growth.

In 2023, transport/cargo insurance accounted for over 55% of the market, driven by global trade volume growth and the need to manage risks such as theft, fire, and natural disasters. 

The Indian government introduced a subsidy program in April 2024 to encourage marine cargo insurance amongst exporters, particularly small and medium enterprises, by reducing insurance costs and mitigating export risks.

Direct sales channels for marine insurance are expected to reach $18.5b by 2032, fueled by digital transformation and the increasing preference for direct insurer-customer interactions. 

Online platforms and apps are improving accessibility and affordability for customers whilst reducing intermediary costs.

The Asia-Pacific region held a 28% share of the marine insurance market in 2023, led by the growing economies of China, India, and Southeast Asia. 

The region's expanding manufacturing sector and increasing maritime trade, as reported by the Asian Development Bank with a 7% growth in maritime trade in 2024, continue to boost demand for marine insurance.