ROLE OF MARINE INSURANCE ON MARINE TRADE GROWTH: A CRITIQUE OF LITERATURE

Abstract

Purpose: Marine insurance is a form of civil contract in which the insurer makes the promise, in exchange for the insurance payment, to the insured person in whose favor the contract was established to compensate them for any losses they may have had as a result of the occurrence of hazards or accidents. The goal of the study is to determine the role of marine insurance on marine trade growth.

Methodology: This was accomplished through the use of a desktop literature review. The use of Google Scholar was utilized in order to locate seminal references and journal articles that were pertinent to the investigation. Papers that were published no more than ten years prior were required to meet the inclusion requirements.

Findings: The field of marine insurance is associated with insuring cargo that is being transported by sea, air, road, or rail; with insuring ships of varying types and sizes, ranging from pleasure craft to oceangoing commercial vessels; and with insuring liabilities that are associated with the transportation of cargo. There is an increased likelihood of risks occurring everywhere in the world.

Unique contribution to theory, practice and policy: Since the performance outcome of marine insurance companies can have implications for the continued existence of shipping and other maritime businesses, the paper makes the recommendation that more specific policy interventions should be directed at the complete removal of impediments in the operating environment of marine insurance firms. In addition, policymakers should work on developing solutions that would, in some way, mitigate the adverse impact that insurance policies have on foreign trade.