Global marine insurance market to reach nearly $40bn GWP by 2021

The global marine insurance market is projected to grow to $39.75bn by 2021 at a compound annual growth rate (CAGR) of nearly 3% according to a research report titled ‘Global Marine Insurance Market 2017-2021’ from market researchers Technavio.

Cargo insurance represented the largest segment of the market in 2016, occupying more than 50% of the overall share. Cargo was expected to continue its dominance through the forecast period, driven by recovering trade volumes.

The decline in global trade values and imports and exports, coupled with slow economic growth in 2015-2016 are major factors to have impacted the conditions for marine cargo insurers. The projected rise in trade volumes post-2018 should increase the demand for cargo loading and inspection services, also increasing the demand for cargo insurance companies, Technavio said.

Hull and Machinery insurance is projected to be worth $9.04bn by 2021. Technavio said that the stabilizing oil economy would result in high crude oil production, directly impacting the marine insurance for hulls. Exploration and production activities in EMEA and North America would lead to a rise in offshore drilling, requiring marine fleets and equipment.

Offshore energy insurance was said by Technavio to be a small but important segment of the market, where an increased market capacity has intensified the price competition. The increasingly popular offshore energy and related products is thought likely to have a direct positive impact on the market segment. The offshore energy insurance market segment is currently witnessing oversupply of market capacity, with the low oil prices leading to less drilling activities. However, during the 2017-2018 period, various offshore projects are expected to experience a sharp growth and will require innovative insurance products.