Commercial Property Insurance Market Outlook – 2030

Commercial property insurance is a type of insurance used as a safeguarding service to cover losses caused by unexpected future events. It is used for protecting losses occurred due to fire, theft, explosions, and natural disaster. Property insurance is used by a diverse range of businesses, including manufacturers, retailers, service-oriented businesses, and non-profits. Property insurance has become a significant expense for businesses that use heavy equipment and manufacturers to cover the cost.

The global commercial property insurance market is segmented on the basis of type, application, enterprise size, and region. Based on type, the market is divided into buildings insurance, contents insurance, flood insurance, earthquake insurance, and others. In terms of application, the market is bifurcated into open perils and named perils. On the basis of enterprise size, the market is segregated into small-sized enterprises, medium-sized enterprises, and large enterprises. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global commercial property insurance industry include Sumitomo Life Insurance Company, MetLife Services and Solutions, Nationwide, Insureon, The Hartford, Prudential, Allianz, State Farm, AEGON, AXA, and Aviva. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global market.

Top Impacting Factors

Expansion of small & medium enterprises (SME) and increased foreign direct investment in real estate drive the market growth. However, high insurance premium is one of the major factors expected to hamper the market growth. In contrast, lucrative investment opportunities and government initiatives toward industries to adopt commercial property insurance have become major opportunities for the commercial property insurance market.

Expansion of Small & Medium Enterprises (SMEs)

In 2020, a study conducted by McKinsey Global Institute (MGI) states that small & medium businesses are a major contributor to economic growth in both developing and developed countries. These businesses are target segments for commercial property insurance. However, during the COVID-19 pandemic, risk in the property market has increased, and thus the demand for commercial insurance has been growing significantly during the forecast period.

Lucrative Investment Opportunities

The Regulation and Development Act 2016 (RERA) provides statutory recognition to the concept of property insurance & purpose of indemnity insurance against financial loss. In addition, generally, government allows 100% foreign direct investment (FDI) in real estate, and overseas investments have been a profitable opportunity for the real estate business to protect their monetary losses. As a result, investments in real estate projects are expected to drive the growth of the market in the coming years.

Key Benefits of the Report

• This study presents analytical depiction of the global commercial property insurance market along with the current trends and future estimations to determine the imminent investment pockets.      
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the commercial property insurance market share.       
• The current market is quantitatively analyzed from 2021 to 2030 to highlight the global commercial property insurance market growth scenario.              
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
• The report provides a detailed commercial property insurance market analysis depending on the present and future competitive intensity of the market.

Market Scope and Structure Analysis

COVID-19 Impact Analysis

• The risk of property damage and loss has increased as businesses are closed during the lockdown. Theft and fires are two examples of potential threats. Consequently, the risk of filing additional claims is a barrier for business growth in the market.
• Moreover, with several government instructions, essential principles of commercial property insurance have been altered, which affects the bottom line of the balance sheet while the companies shut down their business for 30 days due to the cancellation of policy. Therefore, the COVID-19 pandemic has a moderate impact on the commercial property insurance market.

Questions Answered in the Commercial Property Insurance Market Research Report

• Which are the leading players active in the commercial property insurance market?
• What are the detailed impacts of COVID-19 on the commercial property insurance market size?
• What are current commercial property insurance market trends that will influence the industry in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What future projections would help in taking further strategic steps?

 Key Market Segments

 
Key Market Players

• Sumitomo Life Insurance Company
• MetLife Services and Solutions
• Nationwide
• Insureon
• The Hartford, Prudential
• Allianz
• State Farm
• AEGON
• AXA
• Aviva