That elevated danger makes logistics insurance coverage a significant a part of danger administration, offering protection for monetary losses ensuing from incidents that would happen in the course of the transportation of products, Grand View Analysis mentioned.
Key findings from the report embrace:
The cargo insurance coverage phase dominated the market final yr.
“The adoption of cargo insurance coverage is rising owing to the assorted dangers concerned within the transportation of products and cargo together with theft, injury and loss, which can lead to important monetary losses for logistics firms,” Grand View Analysis mentioned.
In response to a research by Verisk Analytics’ CargoNet, final yr noticed a 15% enhance within the variety of provide chain danger occasions. There have been 1,778 such occasions within the US and Canada, and cargo theft rose by 20%. The whole loss worth for 2022 was US$223 million for the US and Canada alone.
The marine phase was additionally more and more essential, the research mentioned.
“Marine transportation performs an important function in world commerce by shifting useful commodities like oil, fuel and uncooked supplies,” Grand View Analysis mentioned. “Due to this fact, marine cargo insurance coverage is crucial to safeguard the financial pursuits of stakeholders, together with shippers, insurers, and different members within the provide chain. This highlights the significance of insurance coverage for the marine business for stopping these losses and has led to the expansion of the phase.”
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