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2021

Commercial Insurance Market

Commercial Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Distribution Channel Enterprise Size and Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2021-2030

BI : Insurance

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Author's: Aarti Goswami| Pramod Borasi | Onkar Sumant
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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.

Commercial-Insurance-Market,-2021-2030

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.

Commercial Insurance Market
By Type
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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.

Commercial Insurance Market
By Distribution Channel
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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.  

Commercial Insurance Market
By Enterprise Size
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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.

Commercial Insurance Market
By Industry Vertical
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Transportation & Logistics segment will maintain the lead throughout the forecast period

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.

Commercial Insurance Market
By Region
2030
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific region would exhibit the highest CAGR of 12.3% during 2021 - 2030

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

Aspects Details
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By Type
  • Commercial Motor Insurance
  • Commercial Property Insurance
  • Liability Insurance
  • Marine Insurance
  • Others
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By Distribution Channel
  • Agents & Brokers
  • Direct Response
  • Others
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By Enterprise Size
  • Large Enterprises
  • Medium-sized Enterprises
  • Small-sized Enterprises
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By Industry Vertical
  • Manufacturing
  • Construction
  • IT & Telecom
  • Healthcare
  • Energy & Utilities
  • Transportation & Logistics
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

AVIVA, AXA, MARSH LLC, AMERICAN INTERNATIONAL GROUP, INC., CHUBB, ALLIANZ, WILLIS TOWERS WATSON, DIRECT LINE INSURANCE GROUP PLC, ZURICH, AON PLC

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.

 

Author Name(s) : Aarti Goswami| Pramod Borasi | Onkar Sumant
Frequently Asked Questions?

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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Commercial Insurance Market

Global Opportunity Analysis and Industry Forecast, 2021-2030