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Asia-Pacific Leads Global Marine Insurance Market with 28% Share

by Celia

The global marine insurance market is poised for steady growth, projected to achieve a compound annual growth rate (CAGR) of 4% from 2024 to 2032, according to a recent report from Global Market Insights.

Valued at $30.2 billion in 2023, the sector’s expansion is driven by the surge in international trade and the growing reliance on sea transportation. As global trade volume increases, so does the need for financial protection against risks such as physical damage, cargo losses, and shipping delays.

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A significant factor fueling the demand for marine insurance is the rising frequency and intensity of natural disasters, including hurricanes and floods, which have increased the risk exposure for marine vessels and cargo. Insurers are increasingly facing claims related to ship damage, cargo losses, and disruptions in shipping schedules, which further contribute to market growth.

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In 2023, transport and cargo insurance accounted for more than 55% of the market, spurred by the expansion of global trade and the need to mitigate risks like theft, fire, and natural disasters.

Additionally, the Indian government has taken steps to bolster marine cargo insurance by introducing a subsidy program in April 2024. The initiative aims to make insurance more affordable for exporters, particularly small and medium enterprises, by lowering insurance costs and reducing export risks.

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Direct sales channels for marine insurance are expected to reach $18.5 billion by 2032. This growth is largely attributed to digital transformation, with customers increasingly opting for direct interactions with insurers through online platforms and apps, which enhance accessibility and reduce intermediary costs.

The Asia-Pacific region, which accounted for 28% of the marine insurance market share in 2023, continues to lead the industry. The region’s strong economic growth, particularly in China, India, and Southeast Asia, coupled with an expanding manufacturing sector and rising maritime trade, is driving demand for marine insurance. According to the Asian Development Bank, maritime trade in the region is projected to grow by 7% in 2024, further boosting the sector’s expansion.

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