Market Research Report

India Maritime Cargo Insurance Market Report Key Takeaways:

• The India Maritime Cargo Insurance market size was valued at USD 2.19 billion in 2025 and is projected to grow from USD 2.89 billion in 2026 to USD 3.92 billion by 2032, exhibiting a CAGR of 5.21% during the forecast period.
• Maharashtra is the leading region with a significant share of 30% in 2026.
• By Coverage type, the all-risk coverage segment represented a significant share of about 60% in the India Maritime Cargo Insurance Market in 2026.
• By Cargo type, the containerized cargo segment presented a significant share of about 50% in the India Maritime Cargo Insurance Market in 2026.
• Leading Maritime Cargo Insurance companies in India are ICICI Lombard General Insurance, The New India Assurance, Bajaj Allianz General Insurance, Tata AIG General Insurance, HDFC ERGO General Insurance, United India Insurance Company, Oriental Insurance Company, National Insurance Company, Reliance General Insurance, SBI General Insurance, and Others.

Market Insights & Analysis: India Maritime Cargo Insurance Market (2026-32):

The India Maritime Cargo Insurance market size was valued at USD 2.19 billion in 2025 and is projected to grow from USD 2.89 billion in 2026 to USD 3.92 billion by 2032, exhibiting a CAGR of 5.21% during the forecast period, i.e., 2026-32.

India’s maritime cargo insurance market has evolved alongside the nation’s expanding seaborne trade, which is projected to increase container volumes to approximately 380 million tonnes in FY26, reflecting an 8 % expansion driven by stronger port handling capacities and hinterland connectivity improvements that support trade flows via sea routes. The rising value of cargo and diversified trade lanes underpin demand for reliable risk coverage, particularly for commercial exporters and importers navigating complex international logistics. End‑user segments such as industrial manufacturers and commercial distributors increasingly rely on maritime insurance to safeguard high‑value shipments against physical loss, damage, and logistical disruptions, reinforcing sustained market scaling. India’s gross premiums from marine cargo insurance have grown commensurately with rising cargo valuations and insurance participation across diverse sectors.

Regulatory and legislative shifts in 2025 have modernized risk governance within India’s maritime transport ecosystem, with the Indian Parliament enacting the Carriage of Goods by Sea Act, 2025, which clarifies carrier liability and cargo rights, thus indirectly supporting transparent cargo insurance obligations among stakeholders in supply chains. Complementing this, the Directorate General of Shipping mandated strict verification processes for Protection & Indemnity (P&I) insurance certificates under Merchant Shipping Notice No. 05 of 2025, enhancing compliance and risk mitigation for vessels and cargo operators entering Indian waters. These regulatory frameworks bolster market confidence by tightening risk controls and aligning domestic practices with international maritime insurance norms.

Infrastructure and trade facilitation policies such as the PM GatiShakti National Master Plan and the Unified Logistics Interface Platform (ULIP) have boosted multimodal integration, reducing transit times and cost inefficiencies that historically elevated uninsured risks in cargo movement. For maritime insurers, more predictable logistical flows and digitized declarations translate into enhanced underwriting accuracy and streamlined policy issuance. Additionally, Indian ports’ modernization—spanning berth expansions and deeper drafts has catalyzed greater cargo throughput, providing insurers with broader exposure to diversified cargo types beyond traditional bulk shipments.

Market prospects are bolstered by strategic risk management developments, including interim extensions for select foreign P&I insurers to maintain liability cover for vessels at Indian ports, pending India’s plan to establish a domestic P&I club by 2026. This transition aims to reduce reliance on external risk pools and stimulate localized insurance capacity. Coupled with expanding maritime trade corridors and ongoing growth in global exports, the cargo insurance segment is positioned for continued demand, driven by robust end‑user reliance on comprehensive coverage, evolving national legal structures, and strong infrastructure‑led trade momentum.

Impact of Iran-Israel War on India's Maritime Cargo Insurance Market:

The ongoing tensions between Iran and Israel have increased geopolitical risks across key maritime trade routes such as the Strait of Hormuz and the Red Sea, which are critical corridors for India’s trade with the Middle East and Europe. As a result, marine insurers in India have raised war-risk premiums and reassessed their underwriting exposure for cargo shipments passing through these high-risk zones.

Marine cargo insurance premiums for shipments passing through conflict-affected zones have increased by 15–30%, with insurers charging an additional 0.10–0.15% of cargo value to cover war-related risks such as missile attacks, hijacking, piracy, and strikes. For Indian exporters, especially those trading with Middle Eastern markets, this increase has significantly raised the cost of maritime logistics and insurance coverage. The conflict has also affected specific Indian export sectors. For instance, shipments of basmati rice from Punjab and Haryana to Iran and other Middle Eastern countries have been delayed due to higher freight and insurance costs linked to the conflict. Exporters have slowed new deals as shipping insurance and logistics costs surged amid the tensions. Since Iran and Gulf countries are major buyers of Indian basmati rice, the disruption has highlighted how geopolitical conflicts can directly affect marine insurance demand and trade flows.

Consequently, the evolving geopolitical landscape is expanding premium pools, attracting new insurance participants, and strengthening the overall growth outlook of India’s marine cargo insurance market.

India Maritime Cargo Insurance Market Scope:

India Maritime Cargo Insurance Market Driver:

Expansion of India’s Maritime Trade Volume

India’s maritime trade network has become a structural driver for the maritime cargo insurance market, rooted in the expanding scale of seaborne cargo flows that directly increase demand for coverage of goods in transit. Nearly 95 % of India’s trade by volume is carried via sea routes, according to official government data, highlighting the central role of maritime logistics in the national economy, and this extensive reliance on maritime transport underpins the necessity for cargo risk protection. This sustained expansion reflects deeper integration into global supply chains rather than a cyclical or short‑term trade fluctuation.

Over recent years, India’s ports have consistently handled growing levels of cargo, with major Indian ports reporting 855 million tonnes of cargo in FY 2024–25, up from prior years, underscoring elevated throughput across export and import segments. This rising trend in physical cargo volume directly feeds into increased requirements for marine insurance, as larger cargo consignments and higher values of goods exported and imported translate into more insured units and higher aggregate insured sums. Insurance demand is thus structurally linked to trade volume growth rather than to transient pricing shifts or risk hedging alone.

The intensification of maritime trade has also diversified the end‑user base, driving cargo insurance uptake, spanning industrial exporters, agricultural commodity traders, and commercial importers who depend on robust sea freight logistics. Export‑oriented sectors contribute to a material increase in annual cargo transported, thereby expanding the overall addressable market for maritime cargo insurance services. This ongoing expansion in cargo volumes generates direct incremental demand for coverage rather than merely affecting premium rates, because each additional metric tonne of cargo in transit represents a new unit of risk that requires indemnification.

In geographic terms, India’s enhanced connectivity with markets across Asia, Africa, and Europe through maritime routes has broadened the market’s scope. The surge in container and bulk shipments handled annually strengthens the structural link between trade volume growth and insurance adoption, reflecting a sustained elevation in the market size and insurance penetration tied to actual cargo movements.