Market Definition
Commercial insurance is a protection plan that is principally designed to insure a business & financially protect it from common risks like client lawsuits, property theft & damage, and customer or employee injuries, among other unexpected situations.
These insurances are available for businesses of all sizes, from large and medium to small companies. These insurance services are widely gaining popularity across different industrial sectors like IT & telecom, manufacturing, logistics, construction, retail, & healthcare, among others.
Additionally, Commercial Insurance is highly fragmented and bifurcates among different products, services, and other sections. With the growing awareness among businesses about the availability & perks of these solutions, several companies in the industry are actively introducing new offerings for users and gaining a competitive edge in the industry worldwide.
Market Insights
The Global Commercial Insurance Market is projected to grow at a CAGR of around 10.23% during the forecast period, i.e., 2022-27. The market is driven by the rapidly growing number of businesses of all sizes worldwide, backed by the availability of favorable government policies & encouragement, augmenting the need for insurance policies to secure businesses from unexpected loss. It, in turn, is boosting the demand for commercial insurance policies and stimulating the industry.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 10.23% |
| Regions Covered | North America: The US, Canada, Mexico |
| South America: Brazil, Rest of South America | |
| Europe: Germany, France, Italy, The UK, Spain, Russia, Rest of Europe | |
| Asia-Pacific: China, Japan, India, South Korea, Australia, Indonesia Rest of Asia Pacific | |
| Middle East & Africa: GCC, South Africa, Rest of Middle East and Africa | |
| Key Companies Profiled | 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, and Zurich Insurance Group Ltd. |
| Unit Denominations | USD Million/Billion |
Since these policies exhibit safety for potential property damage, and protection from lawsuits & liability, alongside worker compensation, the demand for commercial insurance is escalating swiftly, gaining swift traction globally and complimenting the market growth. In addition, the governments of different countries are also making significant contributions to the industry expansion through mandates like Worker Compensation insurance, and Liability Insurance, among others, which, in turn, are also set to drive the demand for commercial insurance worldwide.
Besides, with the growing utilization of telematics devices in the construction, retail, and healthcare industries entwined with the adoption of advanced technologies like Artificial Intelligence (AI), Machine Learning (ML), and Predictive Analysis, among others, the vulnerabilities to threats & damages and hiking and augmenting the demand for commercial insurances across industries. Such aspects are set to generate remunerative growth opportunities for the leading players and contribute substantially to the overall market growth during the forecast period.
Market Segmentation
Based on Enterprise Size:
Between the two, the Small & Medium-Sized Enterprises are projected to demonstrate the fastest growth in the Global Commercial Insurance Market during the forecast period. This growth attributes principally to the growing number of such businesses and their higher liability & risk potentials, propelling the demand for protection using policies like commercial insurance.
Since such policies are used to safeguard businesses from unforeseen losses, small & medium-sized enterprises are among the prominent users of these insurances across the world, making a swift contribution to the market growth. Besides, awareness among enterprises about the presence of different commercial insurances like liability, worker compensation, property income, & employment liability insurances, among others, are also boosting the demand for these insurances among small & medium-sized enterprises.
These varieties of commercial insurance are gaining swift traction among the small & medium enterprises owing to their facilities like protection against bodily injury, property damage, libel or slander due to a company, injury on the job or suffering from illness due to work, and situations like sexual harassment lawsuits, wrongful termination, & timecard discrepancies, among others, & contributing to the overall market growth.
Based on Type:
Here, Liability Insurance is anticipated to dominate the Global Commercial Insurance Market with the largest share during the forecast period. It owes principally to the extensive range of benefits offered in this variety by the commercial insurance providers for the businesses, demonstrating high popularity worldwide.
These perks involve helping the business pay the legal costs of a company, protecting & enabling employees to recover in case of a work-related injury or illness, and paying customer health & medication expenses in case the injury is caused in the business, among others.
Besides, these policies are extensively utilized by different businesses, architects, engineers, consultants, lawyers, building designers, medical professionals, and accountants, among others, are the prominent consumers contributing to the high demand for liability insurance and stimulating the overall market growth through 2027.
Regional Projection
On the geographical front, the Global Commercial Insurance Market expands across:
Here, Asia-Pacific is set to register the fastest growth pace & make a substantial contribution to the market growth during the forecast period. It owes principally to the growing establishment of organizations & businesses across different countries in the region owing to the presence of government encouragement & favorable policies entwined with a greater focus of the governments toward their countries as a hub of opportunities.
As more and more organizations are becoming aware of the availability & perks of these policies and solutions, the demand for commercial insurance is up-surging rapidly throughout the region, making it an area of remunerative opportunities for the leading players in the industry. Besides, with the presence of several prominent insurance companies and service providers and their rising number of offering for different types of businesses, the Commercial Insurance Market is set to witness substantial growth across Asia-Pacific during the forecast period.
Market Dynamics
Possible Restraint
Since commercial insurance is highly fragmented and stems from several individual commercial insurance policies where many target specific industries only, the variations in these policies also hint toward the high premium rates.
These premiums might restrain the small & medium enterprises to invest in such policies and negatively influence the market growth. Several studies have revealed that more than 40% of small businesses have never had insurance. Here, a prominent reason remains the high premium cost, restraining small businesses & cost-constrained companies from insuring themselves.
Growth Opportunity
Every industry, including the insurance sector, is increasingly incorporating advanced technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and Predictive Analysis, among others, to offer better services and policies for companies. It, in turn, is demonstrating a swift momentum in demand for commercial insurance and its anticipated prevalence in the coming years.
The same aspect is also likely to generate remunerative growth opportunities for the leading companies to frame favorable policies for the businesses & meet the diverse needs in the coming years. Hence, it is anticipated that technological advancements would bring opportunities to the industry and shape the commercial insurance market during the forecast period.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Commercial Insurance Market is projected to grow at a CAGR of around 10.23% during 2022-27.
A. High premium rates of insurance policies might limit small & medium sized enterprises to procure commercial insurances and hamper the fledged market growth during the forecast period.
A. Liability Insurance is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Commercial Insurance Market during the forecast period.
A. Asia-Pacific is projected to offer substantial growth prospects in the Global Commercial Insurance Market during 2022-27.
