Logistics Insurance Market Size & Share [2033]

Logistics Insurance Market Overview

The Logistics Insurance Market size was valued at USD 71857.77 million in 2024 and is expected to reach USD 96252.97 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The logistics insurance market plays a critical role in global supply chains, safeguarding goods in transit from physical damage, theft, or loss. With over 90 billion metric tons of cargo moved globally in 2023 alone, the demand for comprehensive logistics insurance has surged. Approximately 20% of global freight faces some form of risk during transportation, including delays, accidents, or adverse weather conditions, making coverage essential. Insurance penetration in the logistics sector increased by 14.6% between 2022 and 2024 due to rising awareness among shippers and freight forwarders. In 2024, marine cargo insurance accounted for nearly 38% of the total logistics insurance policies globally, driven by expanding seaborne trade. Meanwhile, aviation cargo insurance grew by 11.2% year-over-year, reflecting increasing air freight volumes, which surpassed 66 million metric tons globally. Regulatory compliance, such as Incoterms 2020 and rising global trade documentation requirements, also contributed to the insurance market’s growth. Technological adoption in logistics, including IoT tracking and blockchain logistics solutions, has increased demand for tailored insurance products. In 2023, around 46% of logistics providers integrated digital tools for cargo monitoring, resulting in higher premiums and more customized risk management solutions in logistics insurance.

Key Findings

Driver: The rapid globalization of e-commerce logistics is the primary driver, with over 2.64 billion people shopping online in 2023, fueling cross-border shipments and increasing demand for logistics insurance coverage.

Top Country/Region: The United States leads the logistics insurance market, accounting for over 28% of the global insured cargo volume as of 2024, supported by advanced infrastructure and regulatory enforcement.

Top Segment: The transportation insurance segment dominates, with more than 56% share in total logistics insurance policies issued globally by mid-2024, due to increased inland freight movement and multimodal transport operations.

Logistics Insurance Market Trends

The logistics insurance market is evolving rapidly, influenced by global trade expansion, technological advancements, and heightened supply chain risks. In 2023, over 80% of global freight movement was insured under some form of logistics coverage, reflecting an increase from 73% in 2021. A rising trend among freight forwarders and third-party logistics providers is the bundling of insurance services with transportation contracts, which increased by 22.8% between 2022 and 2024. A notable trend is the growing integration of parametric insurance models, especially for weather-related delays. In 2024, over 9.4% of logistics insurers offered parametric policies tied to specific events such as port closures or extreme weather thresholds. This is particularly relevant for seaborne cargo, as over 57% of marine claims in 2023 were weather-related. Digitization has significantly reshaped logistics insurance. More than 65% of policy underwriting processes were handled digitally in 2024, up from 41% in 2021. Technologies such as AI risk assessment, blockchain contract management, and real-time IoT-based cargo tracking have enhanced policy accuracy and claims processing speed by 34%, reducing the average claim resolution time from 21 days in 2022 to 14 days in 2024.

Cybersecurity has become a major component in logistics insurance coverage. With a reported 14.6% increase in cyber-attacks on supply chain systems in 2023, insurers have begun offering cyber-inclusive logistics coverage. As of early 2024, around 18% of logistics insurance policies include protection against data breaches, ransomware, and IT system downtime affecting cargo movement. Climate change and geopolitical instability have also influenced insurance premiums and policy offerings. The Red Sea disruptions in late 2023 led to a 17% surge in war risk surcharges for marine insurance policies. Similarly, strikes in major European rail corridors resulted in an 11.3% rise in cargo delay claims during Q1 2024. Another emerging trend is micro-insurance tailored for small and medium-sized enterprises (SMEs). With SMEs accounting for nearly 43% of global exports by value in 2023, the demand for cost-effective, short-term logistics insurance policies has grown by 29% year-over-year. Digital brokers and insurtech startups have helped lower entry barriers, making insurance accessible to smaller players in the market.

Logistics Insurance Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

The global pharmaceutical sector is witnessing a surge in logistics insurance demand due to the sensitive nature of medical shipments. In 2023, over 42 million shipments of temperature-controlled pharmaceuticals were transported globally, requiring specialized insurance coverage. Around 68% of pharmaceutical cargo is now insured with clauses for cold chain breaches and contamination. The pandemic and ongoing vaccine distribution programs have heightened awareness of the value of insurance in protecting high-value, perishable goods. Logistics insurers are responding with tailored policies covering spoilage, temperature excursions, and delays. In 2024, temperature-sensitive cargo claims rose by 12.4%, further reinforcing the need for specialized coverage in pharma logistics.

RESTRAINT

Complexity in multi-jurisdictional claims processing.

One of the major restraints in the logistics insurance market is the administrative burden and legal complexity associated with filing claims across multiple countries. In 2023, over 37% of cross-border logistics claims experienced delays due to jurisdictional overlaps, regulatory incompatibilities, or documentation issues. For example, shipments passing through multiple customs zones often require multi-country policy coordination, which is time-consuming. Insurers have to navigate differing regulations such as GDPR in Europe, CCPA in California, or marine insurance norms in Asia-Pacific, which increases processing times and overhead costs. This complexity discourages smaller firms from fully adopting global logistics insurance coverage.

OPPORTUNITY

Expansion of digital freight marketplaces.

The rise of digital freight platforms has opened new channels for logistics insurance. In 2024, over 21% of global freight was booked via online platforms like load boards or logistics apps. These platforms increasingly offer embedded insurance options, making it easier for shippers and carriers to access on-demand coverage. The number of digital freight marketplaces that integrated insurance features grew by 33% from 2022 to 2024. This shift not only increases the insurance market’s reach but also promotes flexible pricing models and real-time policy issuance, which benefits small freight operators and growing e-commerce businesses globally.

CHALLENGE

Rising costs and expenditures.

Logistics insurance providers face increasing costs due to higher claim volumes, risk assessments, and inflation in asset values. In 2023, the average value of insured shipments rose by 16.3%, driven by the movement of high-tech electronics, pharmaceuticals, and luxury goods. Simultaneously, global claims frequency increased by 9.7%, leading to pressure on underwriting margins. Rising operational costs—especially in legal, digital infrastructure, and actuarial analysis—have pushed premiums up by an average of 14.2% across global markets in 2024. This inflationary environment challenges the affordability of logistics insurance, particularly for SMEs operating with slim profit margins.

Logistics Insurance Market Segmentation

The logistics insurance market is segmented based on type and application to cater to specific transportation modes and end-user requirements. By type, the market is categorized into transportation, marine, and aviation insurance, each addressing distinct risk profiles and logistics operations. By application, logistics insurance is widely used across manufacturing, services, and commerce sectors. In 2024, over 61% of policies were customized based on application-specific needs, while 39% followed standardized templates, highlighting the market’s evolving demand for tailored insurance solutions.

By Type

Transportation Insurance: accounted for the largest share of logistics insurance policies in 2024, covering over 56% of all insured cargo movements. This includes road, rail, and inland waterways. With over 22 billion tons of goods moved by road globally in 2023, and rail shipments increasing by 8.3%, demand for inland transportation coverage surged. This type of insurance typically includes coverage for collisions, theft, fire, and cargo loss. In 2024, transportation claim frequency stood at 18.7%, mainly due to road accidents and delays.
Marine Insurance: remains crucial, covering seaborne shipments that make up over 80% of international trade by volume. In 2023, more than 11 billion metric tons of cargo were transported by sea. Marine cargo policies protect against perils such as container loss, port delays, and piracy. War risk premiums increased by 17% in early 2024 due to geopolitical tensions in the Red Sea and South China Sea regions.
Aviation Insurance: Though smaller in volume, aviation cargo insurance is critical for high-value, urgent shipments. Global air freight totaled 66.5 million metric tons in 2023, and aviation insurance accounted for 12% of logistics insurance policies. This type includes protection against aircraft damage, cargo spoilage due to pressure or temperature changes, and loading mishandling.

By Application

Manufacturing: represented over 42% of logistics insurance demand in 2024. Manufacturers shipping heavy machinery, industrial equipment, and automotive parts required comprehensive insurance due to high cargo value and risk exposure during transit. In 2023, over 3.1 million claims were filed by manufacturing firms globally.
Services: segment—especially in consulting, IT, and telecommunications—utilizes logistics insurance primarily for the transport of sensitive electronic equipment and hardware. In 2024, this segment accounted for 19% of logistics insurance policies. The rise in global tech infrastructure rollouts led to a 14% growth in insured electronics shipments year-over-year.
Commerce: particularly e-commerce, is a booming application area for logistics insurance. With over 180 billion parcels shipped globally in 2023, coverage for lost, damaged, or delayed packages is essential. This segment saw a 28.6% increase in logistics insurance adoption between 2022 and 2024. Small parcel insurance claims made up 21% of total claims filed in 2023, reflecting the segment’s scale.

Logistics Insurance Market Regional Outlook

The logistics insurance market exhibits varying growth dynamics across regions due to differences in trade volumes, regulatory environments, and infrastructure development. In 2024, North America, Europe, and Asia-Pacific collectively accounted for over 78% of total logistics insurance policies issued globally. Each region plays a distinct role in shaping the global market, with specific trends and challenges contributing to demand patterns and claim ratios.

North America

remains a dominant region in the logistics insurance market, with the United States accounting for over 28% of total insured logistics cargo globally in 2024. The region saw a 13.9% increase in policy issuances year-over-year, driven by the rise of domestic e-commerce shipments, which exceeded 21 billion parcels in 2023. Additionally, Canada and Mexico contributed to growth in cross-border transportation insurance, with NAFTA-related logistics coverage seeing an 8.1% increase in demand. Key sectors like pharmaceuticals and technology accounted for over 47% of high-value cargo insurance in the region.

Europe

is characterized by strong regulatory compliance and a high level of insurance awareness. In 2023, 92% of shipments passing through EU ports were insured, supported by regulatory frameworks such as Solvency II and the Marine Insurance Act. Germany, France, and the Netherlands led regional growth, with Germany alone handling 3.7 billion metric tons of freight that required insurance in 2023. The Russia-Ukraine conflict continued to impact marine and rail insurance premiums, with war risk claims in Eastern Europe increasing by 15.4% from 2022 to 2024.

Asia-Pacific

is the fastest-developing region in logistics insurance, driven by growing manufacturing hubs and port expansions. In 2024, the region handled over 44% of global seaborne cargo, with China, India, and Southeast Asia being major contributors. China recorded 11.1 billion metric tons in domestic freight volume in 2023, prompting increased demand for both marine and inland transportation insurance. The adoption of digital logistics platforms in the region grew by 38%, boosting demand for real-time insurance solutions. Japan and South Korea also demonstrated high uptake of aviation cargo insurance, especially for electronics and semiconductor exports.

Middle East & Africa

region is emerging in logistics insurance, particularly due to large-scale infrastructure projects like ports in the UAE and industrial corridors in Africa. In 2023, the UAE processed 19 million TEUs (Twenty-foot Equivalent Units), prompting a 12.7% increase in logistics insurance policies. Africa’s insured cargo movement grew by 9.4%, driven by increased mining exports and manufacturing investments. However, policy penetration remains low, with only 31% of total shipments covered in parts of Sub-Saharan Africa. Efforts to improve insurance literacy and digital access are ongoing.

List of Top Logistics Insurance Companies

American International
Allianz
DB Schenker
Dawson
G4S International Logistics
Integrity Transportation Insurance
Liberty Mutual Insurance
Peoples Insurance Agency
UPS Capital
Wells Fargo

Allianz: held the largest market share in the global logistics insurance market as of 2024, accounting for approximately 12.6% of all active logistics insurance policies worldwide. The company underwrote over 1.3 million logistics and cargo-related policies in 2023 alone, offering coverage across marine, air, and land freight segments. With global partnerships across 70+ countries and a presence in all major shipping routes, Allianz remains a key industry leader.

American International (AIG): follows closely behind with about 10.9% of the global logistics insurance market in 2024. The company reported over 1.1 million policies underwritten in transportation and marine logistics across North America, Asia-Pacific, and Europe. AIG’s claim settlement efficiency improved by 17.3% between 2022 and 2024, supporting its reputation among shippers, freight forwarders, and 3PLs.

Investment Analysis and Opportunities

The logistics insurance market is witnessing a strategic influx of investments aimed at strengthening digital infrastructure, enhancing customer experience, and expanding risk coverage portfolios. In 2023, global investment in logistics insurtech firms crossed USD 2.7 billion, marking a 21.4% increase from the previous year. These funds are being channeled into AI-powered risk assessment tools, blockchain-backed policy management, and API-integrated insurance offerings within logistics platforms. Private equity and venture capital firms have shown strong interest in embedded insurance solutions. Over 60 startup ventures focused on digital logistics insurance solutions were funded in 2023, with average investment rounds ranging from USD 15–50 million. One notable investment was the USD 48 million Series C funding raised by a European digital logistics insurance firm specializing in automated policy binding and claims processing through machine learning.

Corporations involved in third-party logistics (3PL), such as warehousing and freight forwarding, are increasingly launching captive insurance units. In 2024, over 11% of large logistics providers maintained captive insurance companies to internalize risk, minimize premium leakage, and accelerate claims disbursement. This number grew from 8.7% in 2022, indicating a shifting trend toward risk self-management. Multinational insurers are allocating significant capital into emerging economies to capture untapped market segments. In Asia-Pacific, for example, leading firms expanded their regional presence by opening over 40 new logistics insurance offices in 2023 across India, Vietnam, and Indonesia. These countries saw a 17.2% increase in commercial shipping volume, correlating with an increased demand for regionalized insurance services.

New Product Development

Innovation in the logistics insurance market is accelerating, driven by the need for tailored, tech-enabled, and risk-sensitive policies. In 2023 and 2024, over 120 new insurance products were introduced globally, designed to address specific logistics challenges across marine, air, and land transportation. One significant development is the rise of usage-based logistics insurance. These flexible products allow shippers to pay premiums based on the actual distance traveled or time in transit. As of Q1 2024, more than 18.7% of logistics insurers had launched pay-as-you-go policies, primarily targeting SMEs and last-mile delivery operators. This innovation reduces premium costs by up to 27.4%, particularly for businesses with irregular or seasonal shipping patterns.

Another major breakthrough is real-time cargo insurance integration using API technology. In 2023, over 60 logistics technology platforms integrated APIs that automatically issue policies once a shipment is booked. This innovation reduces administrative time and eliminates manual policy underwriting. As of early 2024, over 7.2 million shipments were covered using API-integrated logistics insurance solutions, a significant jump from 3.1 million in 2022. AI and machine learning are being deployed to automate risk scoring and claims assessment. More than 14 insurance carriers globally introduced AI-powered logistics underwriting platforms in 2023. These platforms analyze historical data, cargo type, weather patterns, and route reliability to instantly calculate premiums. As a result, policy issuance time has dropped by 39%, and claims fraud detection efficiency has increased by 23.6% year-over-year.

Five Recent Developments

Allianz introduced blockchain-backed cargo insurance (2023): launched a blockchain-powered logistics insurance platform designed to automate claims settlement and enhance policy transparency. The platform processed over 180,000 shipments in its pilot phase, reducing claim processing times by 41% and increasing transaction security for international freight movements.
American International (AIG) rolled out AI-driven risk modeling (2024):
implemented AI-based risk assessment models for marine and land cargo insurance. The model, trained on 4.3 million shipping records, improved underwriting precision by 29.7% and helped reduce claims-related fraud by 19.2% in its first operational quarter.
DB Schenker partnered with a digital insurance startup (2023): partnered with a German insurtech startup to offer embedded logistics insurance directly via its freight booking platform. Within three months of the launch, over 320,000 shipments were covered through automated digital insurance, boosting customer uptake by 38%.
UPS Capital expanded coverage to small parcel exporters (2024): launched a micro-logistics insurance product tailored to small and medium-sized exporters shipping goods under USD 1,000 in value. The program, piloted across 12 countries, saw adoption from over 75,000 SMEs, increasing insured parcel volume by 24% in Q1 alone.
G4S International Logistics deployed GPS-synced insurance triggers (2023): launched a location-based insurance trigger system using GPS and geofencing. When shipments entered high-risk zones, the system activated supplementary coverage automatically. This innovation reduced high-risk claims by 16.4% and was deployed on over 9,000 high-value cargo routes globally by early 2024.

Report Coverage of Logistics Insurance Market

The logistics insurance market report offers comprehensive coverage of the global landscape, including in-depth assessments of market dynamics, segmentation, regional performance, emerging technologies, and key players. It examines the structural components that drive the market, such as transportation modes, insured commodities, operational risk profiles, and policy innovations. The report spans over 15 major countries and includes data from 2021 through 2024, capturing trends, fluctuations, and policy adoption rates across sectors. Coverage includes all three primary insurance types: transportation, marine, and aviation, with detailed analysis of their individual growth trajectories, claim frequencies, and regional demand. For example, transportation insurance accounted for 56% of global logistics insurance policies in 2024, while marine and aviation represented 32% and 12% respectively. These segments are further examined in terms of shipment volumes, insured value per shipment, and policy cost structures.

The report addresses application-level segmentation across manufacturing, services, and commerce industries. It highlights the rising insurance uptake in the e-commerce sector, which accounted for over 28.6% growth in policy count from 2022 to 2024. The coverage also includes analysis of specialized needs for temperature-sensitive cargo, high-value goods, and hazardous materials. Regional analysis includes North America, Europe, Asia-Pacific, and Middle East & Africa, each supported by data on freight volumes, claim patterns, and regulatory frameworks. For instance, North America led with 28% of total insured logistics value, while Asia-Pacific showed the highest growth in digital logistics insurance integration, rising 38% year-over-year. The report provides a detailed review of market drivers, such as rising demand for pharmaceuticals and IoT-based tracking integration, alongside restraints like legal complexities in international claims. It also examines opportunities, including underinsured SME logistics and digital freight platforms, and challenges such as inflation-driven cost surges and cyber threats in cargo tracking systems.