Global Logistics Insurance Market 2017-2021
About Logistics Insurance
Insurance is a promise of compensation in case of damage/injury/loss in exchange for a premium. It is a form of risk management. Insurance services include various forms of compensation benefits such as protection of property and vehicles against damage or loss, reimbursement of the cost associated with healthcare, and compensation for accidental death to pre-decided beneficiaries.Logistics insurance offers insurance against the damage or loss to business because of interruption in the logistics chain.Technavio’s analysts forecast the global logistics insurance market to grow at a CAGR of 2.35% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global logistics insurance market for 2017-2021. To calculate the market size, the report considers the revenue generated by different vendors through sales of various insurance products that are segmented based on types. The types of insurance are marine insurance, inland insurance, and aviation insurance.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Logistics Insurance Market 2017-2021
Technavio recognizes the following companies as the key players in the global logistics insurance market: AGCS, AIG, Aon, AXA, Integrity Transportation Insurance Agency, Liberty Mutual Insurance, and Marsh
Other Prominent Vendors in the market are: Arthur J. Gallagher, Atrium, Beazley, Chubb, Gard, Mitsui Sumitomo Insurance, Munich Re, Peoples Insurance Agency, Samsung Fire & Marine Insurance, Sompo Japan Nipponkoa Insurance, Swiss Re, Thomas Miller, Tokio Marine Holdings, XL, and Zurich Insurance.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Increasing popularity of tracking cargos among shippers. Technology is being adopted across various industries in the world. Similarly, a trend to track cargos across logistics chain is seen. Companies are offering various technologies to track the location of trucks or trailers. For example, Novacom Europe is one of the leading companies in trailer telematics. The service is called Trailermatics. The company uses satellite or general packet radio service (GPRS) along with global positioning system (GPS) to continuously monitor trailers or trucks. It also offers an extra range of information as per needs.”
According to the report, one of the major drivers for this market is Increase in number of cargo thefts. It is observed that the number of cargo thefts is increasing. The total loss in the year 2015 because of cargo theft amounted to $20-$25 billion. Brazil saw around 7,000 to 8,000 incidents of cargo theft during 2015, which was the highest in the last 20 years. The probable reasons for this could be Brazil's overall economic crisis that caused a drop in the number of employed people by around 2% to 3% from January 2016 to April 2017. Venezuela is seeing an increase in the number of cargo thefts due to worsening political and economic situations. The below exhibit shows the countries where cargo theft is quite prevalent.
Further, the report states that one of the major factors hindering the growth of this market is Hard insurance market characteristics. The opposite phenomenon is wherein immediately after a catastrophic event, the market prices of insurance reach significantly high. The hard insurance market is highly depended on natural and manmade catastrophic events that take place around the globe. In 2016, around $190 billion losses were recorded worldwide. The years 2013, 2014, and 2015 had seen a declining trend in terms of yearly losses reported due to catastrophic events. It is noted that in 2016, the loss amount borne by insurers worldwide was around $45 to $55 billion, which is greater than the calculated average value for the previous 10 years. Hence, it is a challenge for insurance companies to tackle the cyclical nature of the industry.
AGCS, AIG, Aon, AXA, Integrity Transportation Insurance Agency, Liberty Mutual Insurance, Marsh, Arthur J. Gallagher, Atrium, Beazley, Chubb, Gard, Mitsui Sumitomo Insurance, Munich Re, Peoples Insurance Agency, Samsung Fire & Marine Insurance, Sompo Japan Nipponkoa Insurance, Swiss Re, Thomas Miller, Tokio Marine Holdings, XL, and Zurich Insurance.