Logistics Insurance Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Coverage Type, By Industry, By Shipment Mode, By Region & Competition, 2021-2031F

The Global Logistics Insurance Market is projected to expand from USD 62.92 Billion in 2025 to USD 82.55 Billion by 2031, reflecting a CAGR of 4.63%. This insurance sector is essential for mitigating financial risks faced by service providers and cargo owners, offering coverage for goods during transit and storage across marine, air, and land networks. The market's upward trajectory is primarily fueled by the growth of international trade volumes and the burgeoning global e-commerce industry, both of which require strong protection for high-value supply chains. Furthermore, the push for comprehensive coverage is intensified by stricter regulatory liability mandates and an increased awareness of operational vulnerabilities, ensuring logistics firms remain resilient against unexpected transit losses and legal claims.

However, the industry faces significant hurdles due to geopolitical instability and rising supply chain disruptions, which make risk modeling difficult and drive up claim costs. These unpredictable factors introduce volatility that can make coverage unaffordable in high-risk areas. Despite these challenges, the sector maintains its financial importance; the International Union of Marine Insurance noted in 2025 that the global marine insurance premium base for 2024 reached USD 39.92 billion, a 1.5% rise from the previous year. This figure highlights the market's continued growth even as insurers manage a complex environment of evolving global threats.

Market Driver

A primary market driver is the escalating frequency of cargo theft and security breaches, which necessitates specialized insurance mechanisms to shield against growing financial losses. Modern supply chains are increasingly vulnerable to sophisticated threats, such as strategic pilferage and fictitious pickups, which are often inadequately covered by standard liability terms. As a result, carriers and freight forwarders are forced to secure broader risk transfer solutions to protect high-value assets and preserve client confidence. Underscoring this issue, CargoNet's '2023 Annual Cargo Theft Report', released in January 2024, noted that theft incidents in the United States and Canada surged by 59% in 2023 compared to the prior year, a trend that directly drives higher premiums and increased policy adoption to offset the impact of stolen goods.

Concurrently, the growth of the market is fundamentally supported by the expansion of international trade and global commerce, which increases the volume and value of goods requiring transit coverage. As cross-border transactions rise, logistics providers face elevated exposure to multimodal risks, ranging from handling damage to catastrophic events at sea. This accumulation of risk compels businesses to acquire marine and transit insurance to facilitate financing and ensure business continuity. According to the World Trade Organization's 'Global Trade Outlook and Statistics' from April 2024, world merchandise trade volume is anticipated to grow by 2.6% in 2024, indicating a resurgence in cargo movement. Further highlighting the need for protection, Allianz Commercial reported in 2024 that 26 large vessels were declared total losses globally the previous year, demonstrating the critical need for financial safeguards against major transit casualties.

Market Challenge

The Global Logistics Insurance Market is significantly hindered by geopolitical instability and escalating supply chain disruptions, which introduce unpredictable volatility and complicate accurate risk assessment. When regional conflicts or political tensions compromise trade routes, insurers find it difficult to model potential losses effectively, often resulting in reduced underwriting capacity for high-risk zones. This uncertainty compels providers to either exclude coverage for volatile corridors entirely or impose prohibitive premiums, thereby restricting the market's addressable client base and suppressing potential revenue growth within key international logistics channels.

Furthermore, these disruptions materialize as tangible operational threats, including transit interruptions and cargo theft, which directly inflate claim ratios and diminish underwriting profitability. To illustrate the financial impact of these vulnerabilities, the Transported Asset Protection Association reported in 2025 that recorded cargo crimes in the EMEA region alone led to product losses surpassing €2.7 billion over the recent three-year analysis period. Such substantial loss figures force insurers to increase deductibles and tighten policy terms, ultimately reducing the affordability and appeal of logistics insurance products for shippers sensitive to costs.

Market Trends

The adoption of Parametric Insurance for Supply Chain Disruption is revolutionizing risk management by offering rapid payouts triggered by predefined metrics, such as port delays or weather conditions. Unlike traditional indemnity policies that involve prolonged loss adjustments, this model leverages objective data to provide logistics providers with immediate liquidity during business interruptions unrelated to physical damage. This mechanism is becoming essential for maintaining operational continuity in the face of climate-induced volatility. Highlighting the robust market uptake, The Insurer reported in February 2025 that parametric specialist Descartes Underwriting surpassed USD 200 million in gross written premiums in 2024, evidencing a growing 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 incorporating coverage options directly into booking APIs. This strategy enables shippers to instantly secure transactional cargo insurance at the point of sale, effectively bridging the protection gap for small and medium-sized enterprises that often bypass complex standalone policies. Embedding risk transfer seamlessly into logistics workflows significantly boosts user adoption rates. As proof of this model's rapid expansion, Reinsurance News reported in May 2024 that embedded insurtech firm Cover Genius achieved 107% year-on-year growth in 2023, signaling a structural shift where insurance becomes an automated, integral component of the modern digital supply chain.

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

• 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present 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).