Commercial Insurance Market Outlook – 2030
The global commercial insurance market was valued at $692.33 billion in 2020, and is projected to reach $1,613.34 billion by 2030, growing at a CAGR of 9.7% from 2021 to 2030.
Commercial insurance is a type of insurance policy designed to protect businesses. It offers coverage against the loss arising out of damage to the property, injury to the employees, employer’s liability, and others.
It also provides coverages for various industrial sectors including construction, manufacturing, telecom, textiles, logistics, and others. Commercial insurance aim at offering a safety & security for business operations & assets, reputation, wellbeing & financial situation of a business entity, and for the employees working for the business.
Increase in need for insurance policies among the enterprises to protect business from pandemic scams is considered as an important factor boosting the global commercial insurance market. In addition, increase in competition among small and medium sized business and availability of large number of commercial insurance providers are some of the major factors that propel the commercial insurance market forecast.
However, high insurance premium of commercial insurance and lack of information among small-sized businesses about commercial insurance are some of the factors that limit the market growth. Furthermore, surge in usage of telematics device in the retail, construction, and healthcare industries and adoption of advanced technology in commercial insurance adoptions are some of the major factors expected to create an immense opportunity for the market in the upcoming years.
The report focuses on growth prospects, restraints, and trends of the commercial insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the commercial insurance market.
By Type
Liability Insurance segment accounted for the highest market share during 2021 - 2030
Segment Overview
The commercial insurance market is segmented on the basis of type, distribution channel, enterprise size, industry vertical, and region. On the basis of type, the market is segmented into commercial motor insurance, commercial property insurance, liability insurance, marine insurance, and others. By distribution channel, it is segmented into agents & brokers, direct response, and others.
By Distribution Channel
Agents & Brokers distribution channel is projected to be the most lucrative segment
Based on enterprise size, it is segregated into large enterprises, medium-sized enterprises, and small-sized enterprises. By industry verticals, the market is segmented into manufacturing, construction, it & telecom, healthcare, energy & utilities, transportation & logistics, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Enterprise Size
Large Enterprises segment will dominate the market throughout the forecast period
Competitive Analysis
The report analyzes the profiles of key players operating in the commercial insurance industry such as Allianz, American International Group Inc., Aon plc, Aviva, AXA, Chubb, Direct Line Insurance Group plc, Marsh, Willis Towers Watson, and Zurich. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
By Industry Vertical
Transportation & Logistics segment will maintain the lead throughout the forecast period
Top Impacting Factors
Availability of Large Number of Commercial Insurance Providers
The number of commercial insurance providers have increased drastically over the years mainly due to rise in number of businesses and increase in the types of business coverage. With the availability of such high number of insurance providers, there is an intense competition among various providers offering multiple coverages for businesses of all sizes in the market. In addition, the availability of large number of commercial insurance providers has improved the market conditions, as there are a variety of insurance policies available for all business types and sizes. Furthermore, business owners are increasingly adopting commercial insurance based on the premium charged for the policies, as the premium remains constant throughout the market. Thus, this is a major accelerating factor for the growth of the commercial insurance market.
Adoption of advanced technology in commercial insurance
Increase in adoption of advanced technologies such as artificial intelligence, machine learning, predictive analysis, and others is attributed to offer attractive major opportunities for the commercial insurance market. Predictive analytics is used by several commercial insurers to collect a variety of data to help understand and predict business risks and mitigate losses. A 2018 study by Valen Analytics reported that commercial insurance companies that used technologies such as predictive analytics, blockchain, artificial intelligence, and others witness their loss ratios improve 3% to 9%.
It also reported that insurers using predictive analytics grew their direct written premiums by 53%, compared to the market average of 18% growth during the same time period. The use of technology is aimed to gain consumer loyalty and strengthen its market presence by offering advanced services, as it ensures easy & convenient insurance plans with decreased premium cost. These factors, as a result is expected to offer an immense opportunity to the market in the upcoming years in the commercial insurance domain.
By Region
Asia-Pacific region would exhibit the highest CAGR of 12.3% during 2021 - 2030
Report Coverage & Deliverables
Type Insights
The commercial insurance sector is integral for managing risks associated with business operations. It includes various commercial insurance policy such as general liability, property, and workers' compensation. These policies are essential for protecting businesses from unforeseen events and potential legal claims, thereby contributing to the overall stability and resilience of the commercial sector.
Technology Insights
Commercial insurance growth is increasingly driven by advancements in technology. Innovations such as AI, big data analytics, and digital platforms are transforming the way insurance services are delivered and managed. These technologies enable insurers to offer more personalized and efficient solutions, improve risk assessment and underwriting processes, and enhance customer experience. The adoption of these technologies is accelerating the growth of the commercial insurance market.
Application Insights
Commercial insurance share varies across different sectors and types of coverage. General liability, property insurance, and professional liability are among the most widely adopted commercial insurance products. As businesses seek to mitigate various risks, the demand for these insurance types is growing, leading to an increased share of commercial insurance in the overall insurance market.
Regional Insights
The value of commercial insurance varies by region. North America and Europe are leading markets due to their well-established insurance infrastructure and high adoption rates. In Asia-Pacific, rapid economic growth and increasing business activities are driving the market expansion. Emerging markets in Latin America and the Middle East are also witnessing growth as awareness of commercial insurance benefits increases along with commercial insurance services.
Key Companies & Market Share Insights
Key players in the commercial insurance market include Chubb, Allianz, AIG, and Zurich Insurance. These commercial insurance companies hold significant market shares and are known for their comprehensive range of commercial insurance products and services. Market share is influenced by factors such as the breadth of service offerings, technological advancements, and regional presence. The competition among these key companies shapes the market dynamics and drives innovation in the commercial insurance sector.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global commercial insurance market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global commercial insurance market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the commercial insurance market.
- An extensive analysis of the key segments of the industry helps to understand the global commercial insurance market trends.
- The quantitative analysis of the global commercial insurance market size from 2021 to 2030 is provided to determine the market potential.
Commercial Insurance Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Distribution Channel |
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 By Enterprise Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | AVIVA, MARSH LLC, WILLIS TOWERS WATSON, AON PLC, ZURICH, AXA, ALLIANZ, CHUBB, DIRECT LINE INSURANCE GROUP PLC, AMERICAN INTERNATIONAL GROUP, INC. |
Analyst Review
The commercial insurance market is rapidly adopting advanced technologies, such as predictive analysis, artificial intelligence, and others, to ensure better claim management and to mitigate risk properly. Furthermore, usage of artificial intelligence and predictive analysis has helped commercial insurance providers to better understand and predict the behavior of business owners. This, as a result is becoming major trends in the market. However, the spread of the COVID-19 virus has severely affected the growth of commercial insurance market. This is attributed to increased geopolitical risk, customers switching towards domestic insurers, and shutdowns of several industry verticals globally.
The commercial insurance market is fragmented with the presence of regional vendors. Some companies such as Direct Line Insurance Group plc, American International Group, Inc., AXA, and Chubb are known for their commercial insurance products across the major regions. Europe and North America dominated the commercial insurance market, in terms of revenue in 2020, and are expected to retain dominance during the forecast period.
However, Asia-Pacific is expected to experience significant growth in the future, owing to commercial insurance providers across China, India, and Japan that have been helping business to improve their annual performance & streamline their business operations. Some of the key players profiled in the report include Allianz, Aon plc, Aviva, AXA, Marsh, Willis Towers Watson, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The Commercial Insurance Market is estimated to grow at a CAGR of 9.7% from 2021 to 2030.
The Commercial Insurance Market is projected to reach $1,613.34 billion by 2030.
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Increase in need for insurance policies among the enterprises to protect business from pandemic scams and availability of large number of commercial insurance providers etc. boost the Commercial Insurance market growth.
The key players profiled in the report include Allianz, American International Group, Inc., Aon plc, Aviva, AXA, Chubb, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Commercial Insurance Market is segmented on the basis of type, distribution channel, enterprise size, industry vertical, and region.
The key growth strategies of Commercial Insurance market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Liability Insurance segment would grow at a highest CAGR of 10.7% during the forecast period.
Transportation & Logistics segment will dominate the market by the end of 2030.
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