Cargo Insurance Market Analysis
Spend growth of this market has the potential to touch a value of over USD 5 billion with spend momentum accelerate at a CAGR of over 2% between 2019-2024. The immense boost in e-commerce retail sales owing to the improvement in infrastructure related to the internet and logistics will boost opportunities for cargo insurance suppliers and will supplement to spend growth in this market. The transportation industry is being privatized across most of the emerging nations to bring efficiency and competitiveness. While this will result in the growth of the industry, this will cater to spend growth in the cargo insurance market.
Top Spending Regions in the Cargo insurance Market
Widening international trade relations and growth of supply chain logistics are among the chief spend accelerators in the cargo insurance market across regions.
APAC
APAC houses the fastest-growing cargo insurance market and its spend growth is expected to increase at a substantial rate during the forecast period. The marine insurance sector in Singapore is receiving a substantial boost from the government through the Maritime and Port Authority. The adoption of new technologies such as AI, deep learning, and blockchain will simplify supply chain logistics and cargo trade in the maritime sector and will increase spend opportunities in the cargo insurance market in the region. The completion of China's One Belt, One Road initiative will connect this country to more than 60 nations along the route. This will pave the way for better foreign trade relations, which, in turn, will drive demand growth in the cargo insurance market during the forecast period.
Europe
The cargo insurance market in North America is primarily driven by the growing trade activities between the US and Europe and Asian countries. The rise in trade activities has increased the demand for cargo insurance suppliers. The growth of the e-commerce sector in North America is expected to boost the demand for cargo insurance services to mitigate risk associated with e-commerce transportation in the region during the forecast period.
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What are the Key Price Trends in this Market?
- The increase in the number of cargo-related incidents such as cargo theft claims, machinery damage, and natural calamities is triggering a substantial rise insurance claims amounts. This will impact supplier's profit margin and will consequently propel the cargo insurance market price.
- The predicted increase in the global freight rates has forced cargo owners to undertake cost-cutting initiatives such as the reduction in crew training and maintenance activities. The lack of funds for operating expenses will impact arrival of cargo or the non-completion of the voyage by carriers. According to the cargo insurance price trends, these factors are expected to increase cargo insurance claims, thereby increasing insurance premiums during the forecast period.
- Dynamism in the regulatory frameworks related to capital requirements, compliance, claim handling guidelines, and intrusive scrutiny of conduct across nations compel cargo insurance suppliers to employ legal experts across different regions. They ensure adherence to all the pertinent regulations. However, this adds to supplier's operating costs which are eventually passed on to buyers. According to the cargo insurance price trends, this will increase the cost of cargo insurance premiums during the forecast period.
Download the free sample of this report to know what the key cargo insurance procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Cargo Insurance Market Report
- Global and regional spend potential for the cargo insurance market for the period of 2019-2024
- Supplier relationship management practices in the cargo insurance market
- Supplier margins and selection criteria in the cargo insurance market
- Top cargo insurance suppliers and their cost structures
- Top cargo insurance suppliers in the US and their cost structures
- Cargo insurance market spend analysis in the US
- Cargo insurance price trends, and forecasts
- Cost drivers influencing the cargo insurance prices
Insights into Cargo Insurance Supply Market
- The cargo insurance suppliers market is witnessing a surge in M&A activities. Last year, more than 100 M&A activities were reported in the global cargo insurance market. Many of these acquisitions were focused on increasing suppliers' geographical reach and to increase their scale/product portfolio, such as inland transit and warehouse coverage.
- Cargo insurance suppliers are observed to adopt drones for claim processing. The adoption of drones has helped them to record and document risks found and survey details on a larger scale with high-resolution optical cameras. This reduces suppliers' dependence on experts or claim adjusters. Drones also help claim adjusters in making decisions regarding the pay compensation by surveying the loss quickly and effectively.
- Global cargo insurance suppliers have diversified insurance portfolios, which help them to expand their customer base. These suppliers offer a wide range of insurance products that cover a wide range of risks, including automotive, property damage, lawsuits, theft, and cyberattack. Buyers should engage with such suppliers to get a one-stop solution at a discounted price.
Insights into Some of the Leading Cargo Insurance Suppliers
The supply market dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the cargo insurance market. This cargo insurance market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top cargo insurance suppliers. The top cargo insurance suppliers highlighted in this report include:
- American International Group Inc.
- AXA Group
- Allianz SE
- Marsh & McLennan Companies Inc.
- Aon Plc
- Chubb Ltd.
Criteria to select suppliers in this dynamic cargo insurance market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
