Commercial Insurance Market

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.

With an unprecedented COVID-19 pandemic, demand for commercial insurance has affected due to rapid increase in motor liability premium rates & claim payments, continued pressure towards pricing, and rising severity of losses across several industry verticals.

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 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.

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.

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.  

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.

COVID-19 Impact Analysis

The COVID-19 pandemic has a negative impact on the commercial insurance industry. Massive shift to remote working across several industry verticals, business interruption, and digitalized underwriting, claims, and administrative processes have become challenging factors for commercial insurers in the market. As the pandemic has affected all the industry verticals, there has been increased number of fraudulent claim attempts and lack IT infrastructure between the distribution channel has affected the commercial insurance market growth.

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 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.  

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 Key Segments

By Type

• Commercial Motor Insurance
• Commercial Property Insurance
• Liability Insurance
• Marine Insurance
• Others

By Distribution Channel

• Agents & Brokers
• Direct Response
• Others  

By Enterprise Size

• Large Enterprises
• Medium-sized Enterprises
• Small-sized Enterprises 

By Industry Vertical

• Manufacturing
• Construction
• IT & Telecom
• Healthcare
• Energy & Utilities
• Transportation & Logistics
• Others 

By Region

• North America
  • U.S.
  • Canada

• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

Key Market Players

• Allianz
• American International Group Inc.
• Aon plc
• Aviva
• AXA
• Chubb
• Direct Line Insurance Group plc
• Marsh
• Willis Towers Watson
• Zurich

 Commercial Insurance Market Report Highlights