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Commercial Insurance Market Size, By Type (Liability Insurance, Commercial Motor Insurance, Commercial Property Insurance, Marine Insurance), By Enterprise Size (Large Enterprises, SMEs), By Distribution Channel (Agents & Brokers, Direct Response), By Industry Vertical, Forecast 2024 - 2032

  • Report ID: GMI6306
  • Published Date: Jul 2024
  • Report Format: PDF

Commercial Insurance Market Size

Commercial Insurance Market was valued at USD 874.1 billion in 2023 and is anticipated to register a CAGR of over 7.5% between 2024 and 2032. A significant increase in risk awareness has driven the demand for commercial insurance. Companies are recognizing the potential threats to their operations including cyberattacks, natural disasters, and liability issues. This heightened awareness prompts businesses to seek comprehensive insurance coverage to protect their assets, maintain business continuity, and safeguard against unforeseen events. Insurers, in response, are offering customized policies and risk management solutions to address the evolving needs of businesses and other uncertainties.
 

Commercial Insurance Market

Rapid urbanization and infrastructure development have led to surging demand for commercial insurance. As cities expand, more businesses, properties & infrastructure projects emerge, creating new risks and vulnerabilities. Insurance becomes crucial in protecting these urban assets from risks such as property damage, accidents, and liability claims. Insurers are adapting to the growing urban landscape by offering specialized coverage options for construction projects, commercial properties, and public infrastructure, driving growth in the commercial insurance industry.

Underpriced insurance policies may seem attractive to customers initially, but they can create adverse consequences in the long run. If insurers are unable to cover the claims adequately, they may be forced to raise premiums or limit coverage, leading to dissatisfaction among policyholders. Additionally, the overall health of the insurance market may be compromised if multiple insurers engage in underpricing, leading to potential instability and market contraction. Insurance companies need to conduct thorough risk assessments and price their products appropriately to maintain a sustainable market.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the commercial insurance market by increasing risk awareness and the need for insurance coverage. Businesses recognized the vulnerabilities brought about by the pandemic such as interrupted operations, supply chain disruptions, and cyber risks. This heightened risk awareness created a demand for insurance products designed to address pandemic-related concerns, and insurers responded with innovative coverage options & digital solutions to meet the evolving needs of businesses during these challenging times.
 

Commercial Insurance Market Trends

The commercial insurance industry is undergoing digital transformation and witnessing the integration of insurtech (insurance technology) solutions. Insurers are leveraging advanced technologies, such as artificial intelligence, data analytics & machine learning, to streamline processes, underwrite risks more accurately, and enhance customer experience. Additionally, insurtech startups are collaborating with traditional insurance companies to offer innovative products & services, thereby catering to specific industry needs and addressing emerging risks. This trend is reshaping the commercial insurance landscape and fostering greater efficiency, agility & customer-centricity in the industry.
 

The commercial insurance market is witnessing a growing emphasis on customization and flexible coverage options. Businesses now seek personalized insurance solutions that align precisely with their unique risks and operational requirements. Insurers are moving away from one-size-fits-all policies and offering customized coverage to cater to various industries & specific risk exposures. This trend is particularly evident in areas including cyber insurance, where companies require protection against evolving cyber threats. Insurers are collaborating with businesses to better understand their risk profiles and design policies that provide comprehensive coverage, ultimately enhancing the value proposition for commercial insurance customers and thereby, propelling product adoption during the forecast period.
 

Commercial Insurance Market Analysis

Commercial Insurance Market Size, By Enterprise Size, 2022 – 2032, (USD Billion)

Based on enterprise size, the commercial insurance market is divided into large enterprises and SMEs. The large enterprises segment held around 67% share in 2023. Increased risk awareness among big corporations is contributing to segment growth. As these companies expand their operations and face complex risks, they seek comprehensive insurance solutions to safeguard their assets, ensure business continuity, and mitigate potential losses. Insurers are customizing policies to cater to the specific needs of large enterprises, thereby driving growth in this segment.
 

Commercial Insurance Market, By Type, 2023

Based on type, the market is categorized into liability insurance, commercial motor insurance, commercial property insurance, marine insurance, and others. The commercial property insurance segment held around 34% share in 2023. The commercial property insurance market growth is attributed to several factors including economic growth and urbanization. These factors have led to increased construction and infrastructure development, creating a higher demand for property insurance coverage. Additionally, the rising awareness of property-related risks, such as natural disasters and property damage, has also encouraged businesses to seek comprehensive insurance protection. As a result, insurers are expanding their offerings to cater to this expanding market segment.
 

China Commercial Insurance Market Size, 2022 -2032, (USD Billion)

Asia Pacific led the global market with a share of over 23% in 2023 and is expected to grow at highest CAGR during the forecast period. The Asia Pacific region is expected to experience significant growth in the commercial insurance industry owing to various factors such as rapid economic development, expanding urbanization, and increasing awareness of risk management. These factors are also driving businesses to seek comprehensive insurance coverage. As the region becomes a global economic powerhouse, it attracts foreign investments, further fueling the demand for insurance products. Additionally, advancements in technology and the adoption of digital solutions are making insurance more accessible & attractive to businesses in the region, contributing to market expansion.
 

Commercial Insurance Market Share

Major players operating in the commercial insurance industry are:

  • Zurich
  • AXA
  • Chubb Limited
  • Aon Plc
  • Marsh LLC
  • Willis Towers Watson
  • Direct Line Insurance Group PLC
  • Allianz
  • American International Group Inc.
  • Aviva

These players are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovations in the market and garner the maximum industry revenue.
 

Commercial Insurance Industry News

  • In April 2023, American International Group Inc. (AIG) finalized an agreement with Stone Point to launch a high-net-worth Managing General Agency (MG). Stone Point is a private equity firm that invests in businesses in the global financial services industry. With this partnering AIG can maximize the strengths of this business and improve product offerings to better serve the High and Ultra High Net Worth markets.
     

The commercial insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Type

  • Liability insurance
  • Commercial motor insurance
  • Commercial property insurance
  • Marine insurance
  • Others

Market, By Enterprise Size

  • Large enterprises
  • SMEs

Market, By Distribution Channel

  • Agents & brokers
  • Direct response
  • Others

Market, By Industrial Vertical

  • Transportation & logistics
  • Manufacturing
  • Construction
  • IT & telecom
  • Healthcare
  • Energy & utilities
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ 
  • Latin America
    • Brazil
    • Mexico 
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Market size for commercial insurance was USD 874.1 billion in 2023 and is expected to register over 7.5% CAGR from 2024-2032 due to the significant increase in risk awareness and rising recognition of potential threats like cyberattacks and natural disasters worldwide.

The commercial property insurance segment held 34% share of the commercial insurance industry in 2023 and is expected to register an appreciable CAGR from 2024-2032 owing to the rising awareness of property-related risks, such as natural disasters and property damage.

Asia Pacific held over 23% share of the commercial insurance industry in 2023 and is expected to register a commendable CAGR from 2024-2032 due to rapid economic development, expanding urbanization, and increasing awareness of risk management in the region.

Zurich, AXA, Chubb Limited, Aon Plc, Marsh LLC, Willis Towers Watson, Direct Line Insurance Group PLC, Allianz, American International Group Inc., and Aviva, are some of the major commercial insurance companies worldwide.

Commercial Insurance Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 313
  • Countries covered: 18
  • Pages: 300
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