Shipping Insurance Market Size & Share [2033]

Shipping Insurance Market Overview

The Shipping Insurance Market size was valued at USD 11198.22 million in 2024 and is expected to reach USD 15189.67 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The shipping insurance market has gained momentum globally due to rising e-commerce transactions, increased international trade, and heightened cargo risk awareness. In 2023, more than 65 billion parcels were shipped globally, with over 12% insured under specific shipping insurance policies. Of the total shipping volume, about 28% was related to cross-border e-commerce, which experienced frequent damage, loss, or delay, making insurance indispensable. In the United States alone, approximately 11 billion parcels were shipped in 2023, and 2.3 billion were insured. Insured shipments in Europe rose to 8.5 billion packages, accounting for 31.6% of all parcel traffic. The number of active shipping insurance providers exceeded 2,000 globally, with over 120 specialized in marine and cargo lines. Demand surged in high-risk goods categories such as electronics and pharmaceuticals, where over 43% of items were insured. In addition, 19% of small to medium-sized businesses adopted first-time shipping insurance plans in 2023 to mitigate supply chain disruption risks. With the rising digitalization of freight and logistics, over 900 insurance platforms now offer integrated digital claim tracking and automatic policy activation at the point of shipment.

Key Findings

Driver: Expansion of global e-commerce shipments with high-value goods.

Country/Region: China led the market with over 13.5 billion insured parcels in 2023.

Segment: International shipping insurance dominated with over 60% market share.

Shipping Insurance Market Trends

The shipping insurance market is undergoing digital transformation, particularly in the e-commerce and logistics sectors. In 2023, more than 900 digital platforms provided real-time insurance services integrated with shipment tracking. Automation in claims processing surged by 34%, significantly reducing settlement times. Over 65% of users reported claim settlement within seven working days, a notable improvement from previous years. Blockchain adoption in shipping insurance contracts increased, with 38 insurers integrating smart contract functionality to eliminate fraud and automate policy execution. Insurtech partnerships also witnessed rapid growth. In 2023, 47 major shipping insurers collaborated with logistics companies to provide embedded insurance services, resulting in 3.2 billion covered shipments. Value-added offerings, such as same-day claims initiation and photo-based damage assessment, gained traction, with usage increasing by 29% among parcel insurers.

Environmental sustainability trends impacted the sector, as carbon-neutral shipping insurance products emerged in markets like Germany, the Netherlands, and Canada. These eco-focused insurance options represented 4.3% of total global insured shipments in 2023. There is a noticeable trend toward customizable insurance options. Businesses can now insure partial cargo loads or specific legs of transport, an offering that covered over 1.1 billion shipments in 2023. Also, risk profiling tools integrated into shipping management platforms were used by 36% of commercial shippers to calculate and adjust insurance coverage dynamically.

Shipping Insurance Market Dynamics

DRIVER

Expansion of global e-commerce shipments with high-value goods.

The rapid increase in global e-commerce has directly influenced the demand for shipping insurance. In 2023, online sales accounted for over 23% of all retail transactions worldwide, pushing parcel volumes to 65 billion annually. High-value goods such as smartphones, luxury items, and medical equipment accounted for 19.7% of total e-commerce shipments. This group experienced a damage/loss rate of 5.4%, prompting insurers to expand their shipping coverage options. Across 74 countries, shipping insurance was bundled into logistics platforms covering 2.5 billion packages automatically. With over 230 million packages reported lost or damaged in 2023, shipping insurance adoption among SMEs rose by 17.6% globally.

RESTRAINT

Inconsistent claim settlement and regional regulatory complexity.

Despite improvements in automation, many regions still face delayed claim settlements and policy enforcement challenges. In 2023, over 16% of claimants in Latin America experienced delays exceeding 30 days. Regulatory frameworks in over 48 developing countries are fragmented, often requiring local brokerage or added customs documentation, which complicates policy issuance. Around 19% of shipping insurers operating globally identified regional policy inconsistency as a key hurdle in scaling services. For example, cross-border claim resolution between the EU and certain Asian nations led to a 14% rejection rate for high-value claims. Customers in these regions reported dissatisfaction levels of up to 22%, affecting overall market penetration.

OPPORTUNITY

Increasing integration of AI and IoT in risk mitigation.

Advancements in AI and IoT technology are transforming shipping insurance into a proactive risk management tool. In 2023, more than 28 million parcels were tracked using real-time sensors linked to insurance policies. AI-powered predictive models reduced claim risk by 23.5% through route optimization and weather-based risk flagging. Approximately 140 insurers introduced intelligent claim handling powered by image recognition and geo-tagging, covering over 950 million parcels. Integration of smart locks and tamper-proof seals tied to dynamic policy triggers protected 3.1 million high-risk shipments. This shift positions shipping insurance as a tech-driven safeguard, particularly beneficial in sectors like electronics and pharmaceuticals.

CHALLENGE

Rising costs of shipping premiums and fraud detection limitations.

The rising cost of premiums has become a concern, especially for small and medium-sized enterprises. Average shipping insurance premium costs increased by 11.4% globally in 2023. In North America, premiums for electronics and fragile goods rose by up to 19%. Simultaneously, shipping fraud—such as false loss claims or staged theft—affected over 4.8 million shipments, costing insurers significant losses. AI-based fraud detection tools were only implemented by 42% of providers, leaving large portions of claims vulnerable. SMEs reported that premium increases deterred them from insuring all shipments, with 27% opting to insure only high-risk items. The gap between coverage availability and affordability continues to strain market expansion.

Shipping Insurance Market Segmentation

The shipping insurance market is segmented by type and application, helping identify usage trends. In 2023, international shipping insurance covered more than 38 billion shipments globally, while domestic insurance covered around 27 billion shipments. E-commerce accounted for the majority of demand.

By Type

International Shipping Insurance: In 2023, international insurance accounted for over 60% of market activity, insuring 38 billion shipments. High-risk items such as electronics and fashion represented 45% of claims. Cross-border shipping grew in volume across Asia, Europe, and the Americas, pushing more firms to seek end-to-end insurance. Automated policy activation through e-commerce platforms contributed to 12 billion insured cross-border parcels.
Domestic Shipping Insurance: Domestic insurance services covered 27 billion parcels globally in 2023. The largest volumes were seen in the U.S., India, and China. Approximately 66% of local retailers adopted blanket insurance plans for intrastate delivery services. Claims mostly stemmed from handling damage (51%) and theft (23%). Smart lockers and insured parcel drop boxes emerged in urban areas, particularly in the U.S. and South Korea, enhancing last-mile delivery assurance.

By Application

Commercial Trade: Commercial trade represents the largest segment in the shipping insurance market, encompassing a wide array of goods transported globally. This segment includes both bulk commodities and high-value items such as electronics, pharmaceuticals, and luxury goods. In 2023, commercial trade accounted for approximately 65% of the total shipping insurance policies issued worldwide. The increasing volume of international trade, driven by globalization and e-commerce growth, has heightened the demand for comprehensive insurance coverage to mitigate risks associated with cargo loss, damage, or theft during transit. Insurers in this segment focus on providing tailored solutions that address the specific needs of exporters and importers, including coverage for multimodal transportation and supply chain disruptions.
Traffic: The traffic segment pertains to the transportation of vehicles and automotive parts, including cars, motorcycles, trucks, and related components. This segment has witnessed significant growth due to the expansion of the global automotive industry and the increasing cross-border movement of vehicles. In 2023, traffic-related shipping insurance policies constituted about 15% of the market. The complexity of transporting vehicles, which often involves specialized carriers and handling procedures, necessitates insurance products that cover potential damages during loading, unloading, and transit. Additionally, the rise in online vehicle sales and auctions has contributed to the increased demand for shipping insurance in this segment.
Construction: The construction segment involves the shipment of building materials, heavy machinery, and equipment essential for infrastructure projects. In 2023, this segment represented approximately 12% of the shipping insurance market. The transportation of construction-related goods often entails unique challenges, such as oversized loads, fragile materials, and high-value equipment, which require specialized insurance coverage. The growth in global infrastructure development, particularly in emerging economies, has propelled the demand for shipping insurance solutions that cater to the construction industry's specific risks, including coverage for delays, equipment breakdowns, and accidental damages during transit.
Others:The 'Others' category encompasses a diverse range of shipments that do not fall under the primary segments, including personal effects, artworks, perishable goods, and specialized cargo. In 2023, this segment accounted for about 8% of the shipping insurance market. The varied nature of goods in this category necessitates highly customized insurance policies that address specific risks, such as temperature sensitivity for perishables or high-value coverage for artworks. The increasing globalization of niche markets and the rise in individual shipments have contributed to the growth of this segment, prompting insurers to develop flexible and comprehensive coverage options.

Shipping Insurance Market Regional Outlook

The global shipping insurance market shows diverse regional behavior influenced by regulatory environments, logistics infrastructure, and digitalization levels. Asia-Pacific led with over 30 billion insured parcels in 2023. Europe followed with 17 billion, while North America reached 12 million and MEA recorded 6 billion insured packages. Advanced economies reported faster claim processing and digital integration.

North America

In North America, 12 million insured shipments were recorded in 2023, with the U.S. accounting for 9.4 million and Canada 2.6 million. The market is mature, with digital claim management integrated into over 450 logistics platforms. Major cities like New York and Los Angeles handled 61% of insured shipments in the U.S. High-value categories such as jewelry, electronics, and pharmaceuticals dominated insured cargo. Approximately 48% of SMEs use shipping insurance. AI-assisted policy verification tools were utilized by 37% of North American insurers.

Europe

Europe reached 17 billion insured parcels in 2023. Germany led with 4.9 billion, followed by the UK with 3.8 billion and France with 2.1 billion. Digital transformation initiatives helped 67% of insurers introduce real-time policy tracking. Eco-friendly policies gained momentum, particularly in the Netherlands, where 1.2 billion parcels used carbon-offset shipping insurance. Claims involving cross-border shipments within the EU were settled within 10 days in 73% of cases. Automated documentation reduced claim processing costs by 14.3% across the region.

Asia-Pacific

Asia-Pacific dominated the shipping insurance market with over 30 billion insured shipments in 2023. China was the top contributor with 13.5 billion, followed by Japan at 5.2 billion and India at 4.3 billion. E-commerce volume drove demand, particularly on platforms offering automatic insurance at checkout. More than 62% of logistics providers partnered with insurers to offer bundled insurance services. South Korea’s AI-driven insurance policies covered 1.9 billion parcels. IoT-enabled claim verification was active on 28% of insured shipments in the region.

Middle East & Africa

The Middle East and Africa saw 6 billion insured parcels in 2023, up from 4.7 billion in 2022. Saudi Arabia and South Africa led the market with 1.6 billion and 1.2 billion shipments respectively. Government initiatives supporting logistics hubs boosted coverage. Insurers introduced digital-first platforms for SMEs in Dubai, driving 23% more new policies. Freight delays and regional instability led to increased adoption of theft and delay insurance, with demand rising 19% year-over-year. About 40% of MEA logistics firms now include embedded insurance with shipping contracts.

List Of Shipping Insurance Companies

Allianz
AIG
PICC
Ping An Insurance
China Pacific Insurance
UPS Capital
USPS
FedEx
YAS
DHL
ShipCalb
U-PIC

Allianz: is a global insurance leader based in Germany, offering shipping insurance through Allianz Global Corporate & Specialty. In 2023, it insured over 2.1 billion parcels via embedded coverage and operates in 70+ countries.

AIG :is a U.S.-based multinational insurer with a strong marine insurance portfolio. In 2023, it implemented real-time data-based pricing and served 18 countries, helping reduce claim payouts by 12.8%.

Investment Analysis and Opportunities

The shipping insurance market is attracting robust investments as digital transformation, regulatory evolution, and risk mitigation needs continue to grow. In 2023, over 200 insurance firms invested in upgrading digital claims platforms, with an average implementation cost of $1.6 million per provider. Investment in embedded insurance solutions increased, with 57 e-commerce platforms launching integrated policies through APIs. Logistics-tech partnerships resulted in $310 million of infrastructure upgrades in warehousing and package tracking to align with insurance validation requirements. Insurtech startups focusing on micro-insurance policies attracted over $620 million in funding, launching services across 18 new markets. Approximately 1,200 insurers enhanced their mobile claim processing apps, increasing app-based claims by 44%. North American markets saw a 27% increase in blockchain adoption for fraud mitigation. Smart contract deployment covered over 120 million parcels. Opportunities lie in regional expansion across Southeast Asia, Sub-Saharan Africa, and South America. Cross-border trade insurance for SMEs represents a key growth area, with 35% of insurers planning localized products for developing economies. Satellite-tracked freight and climate-adjusted coverage for perishable goods are emerging segments, showing a 21% growth in policy issuance. The growing value of data analytics in risk underwriting is also spurring tech-based partnerships.

New Product Development

Innovation is accelerating in the shipping insurance market, with insurers launching specialized products targeting digital-first customers and industry-specific needs. In 2023, over 70 new insurance policy models were introduced globally. Real-time adjustable policies—based on parcel location and risk triggers—were launched in 14 countries. These adaptive products covered over 220 million shipments. Customizable short-term insurance for one-time international shipments became a growing category, especially for high-value exports. Approximately 3.4 million policies were sold under this model in 2023. IoT-based insurance tied to temperature-controlled shipments was introduced by 27 global insurers, covering over 980,000 medical and food-grade deliveries. AI-based predictive claim policies were deployed by 40 insurers, which pre-assessed risk and adjusted premiums automatically. Claims automation using video/image assessment was available in 52% of new policies in developed countries. Climate-linked policies that factor in weather events such as storms or floods were used to cover 1.1 million shipments in 2023. Sustainability also guided product development, with 90 insurers introducing carbon-offset shipping policies that attracted over 4 million customers globally. Several logistics firms also collaborated with insurers to launch monthly subscription-based insurance bundles, selling over 7.6 million packages globally. New models prioritize transparency, user control, and affordability.

Five Recent Developments

Allianz partnered with a major Asian e-commerce platform to provide automatic embedded shipping insurance on every international order, covering 2.1 billion packages within six months.
AIG launched a dynamic pricing model that uses real-time weather and route data, reducing average claim payouts by 12.8% across 18 countries.
FedEx expanded its proprietary shipping insurance to 17 new countries in 2024, reaching 650 million covered parcels with new temperature-sensitive and return-shipment policies.
Ping An Insurance released an AI-powered claims assistant, processing claims within 3.2 days on average for over 310 million parcels.
UPS Capital unveiled a modular insurance package that allows shippers to select from five risk parameters. It reached 1.4 million clients within the first nine months.

Report Coverage of Shipping Insurance Market

This report provides comprehensive coverage of the global shipping insurance market, including its structure, trends, segmentation, and regional performance. It covers the entire shipment lifecycle from pre-dispatch insurance activation to post-delivery claims. The scope includes both international and domestic shipping insurance across sectors such as e-commerce, freight, construction, and specialized items. Quantitative data highlights include over 65 billion parcels shipped globally in 2023, with 40.3 billion insured through either blanket or customized policies. More than 2,000 active insurance providers operate in the sector, including traditional giants and emerging insurtech firms. Detailed segmentation analysis distinguishes between high-volume international shipping (38 billion parcels) and domestic insurance (27 billion parcels). Regional insights capture Asia-Pacific as the largest contributor with 30 billion insured shipments, followed by Europe, North America, and MEA. Each region is analyzed based on claim handling efficiency, digital integration, and policy customization trends. Technology’s role is deeply examined, with AI, IoT, blockchain, and real-time tracking driving innovation. Company profiling includes 12 major market participants, with Allianz and AIG holding the highest market shares through diversified and digital-first offerings. The report also outlines investment patterns, product innovation cycles, and opportunities in micro-insurance, SME markets, and climate-adaptive coverage. This analysis equips stakeholders with data-backed insights for strategic decision-making.