The global commercial insurance market size reached US$ 793.6 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 1,203.7 Billion by 2028, exhibiting a growth rate (CAGR) of 6.86% during 2023-2028.
Increasing awareness of business risks, evolving regulatory requirements, the rise of technology-enabled risk assessment, the growing impact of natural disasters and climate change, and the surge in cyber threats are influencing the market growth.
The report has segmented the market by type, enterprise size, distribution channel, and industry vertical.
Factors Affecting the Growth of the Commercial Insurance Industry:
- Increasing Awareness About Risk Management:
The rising awareness among organizations about the critical role of comprehensive risk management is propelling the market growth. In line with this, companies are recognizing the need to safeguard their operations against potential risks, such as property damage, liability issues, or disruptions to business continuity. This is encouraging companies to strengthen their risk management strategies. Moreover, the increasing demand for commercial insurance products that offer tailored protection against a diverse array of risks is stimulating the growth of the market.
- Regulatory Changes and Compliance Requirements:
Governing agencies of various countries are introducing new regulations and updating existing policies that allow companies to adapt and ensure compliance. In addition, the need to meet regulatory requirements, whether related to specific industries or general business practices, is prompting organizations to invest in comprehensive commercial insurance coverage. Apart from this, insurers are developing policies that address the specific compliance needs of companies, contributing to the growth of the market. Moreover, organizations are adhering to legal compliance to avoid penalties, which is catalyzing the demand for commercial insurance.
- Technological Advancements:
Technological advancements, such as the integration of insurtech solutions, to streamline insurance processes and enhance the overall efficiency of insurance operations are strengthening the market growth. Insurtech solutions are improving underwriting accuracy, automating claims processing, and providing companies with more data-driven insights into their risk profiles. In addition, these technological advancements not only make commercial insurance more responsive to the specific needs of companies but also contribute to a more cost-effective insurance ecosystem. It also enables faster claims processing through automated systems and improves the overall claims experience.
Commercial Insurance Market Report Segmentation:
By Type:
- Liability Insurance
- Commercial Motor Insurance
- Commercial Property Insurance
- Marine Insurance
- Others
Liability insurance represented the largest segment as it is often mandated by law or regulatory bodies for organizations in various industries.
By Enterprise Size:
- Large Enterprises
- Small and Medium-sized Enterprises
Large enterprises accounted for the largest market share due to complex regulatory requirements and comprehensive insurance coverage to mitigate potential financial liabilities.
By Distribution Channel:
- Agents and Brokers
- Direct Response
- Others
Agents and brokers exhibit a clear dominance as they provide expertise and benefit clients in choosing suitable commercial insurance.
By Industry Vertical:
- Transportation and Logistics
- Manufacturing
- Construction
- IT and Telecom
- Healthcare
- Energy and Utilities
- Others
Transportation and logistics hold the biggest market share due to increasing incidents of cargo theft and accidents.
Regional Insights:
- North AmericaUnited States
Canada
- Asia PacificChina
Japan
India
South Korea
Australia
Indonesia
Others
- EuropeGermany
France
United Kingdom
Italy
Spain
Others
- Latin AmericaBrazil
Mexico
Others
- Middle East and Africa
North America dominates the commercial insurance market on account of the rising focus on insurance compliance.
Global Commercial Insurance Market Trends:
Increasing preferences for eco-friendly practices among companies that align with broader corporate responsibility initiatives is contributing to the growth of the market. They are seeking digital insurance solutions to reduce their carbon footprint and maintain environmental sustainability. Besides this, there is a rise in the demand for comprehensive commercial insurance solutions that can provide consistent protection across borders and enable organizations to navigate the complexities of operating in diverse geographical locations.
The rising adoption of commercial insurance to protect assets from unexpected financial losses is bolstering the growth of the market.
Leading Companies Operating in the Global Seeding Industry:
- Allianz SE
- American International Group Inc.
- Aon plc
- Aviva plc
- Axa S.A.
- Chubb Limited
- Direct Line Insurance Group plc
- Marsh & McLennan Companies Inc.
- Willis Towers Watson Public Limited Company
- Zurich Insurance Group Ltd.
Other Key Points Covered in the Report:
- COVID-19 Impact
- Porters Five Forces Analysis
- Value Chain Analysis
- Strategic Recommendations
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