Commercial Insurance Market Size and Forecast to 2031
The commercial insurance market size is expected to grow from US$ 870.2 billion in 2023 to US$ 1517.7 billion by 2031; it is anticipated to expand at a CAGR of 7.2% from 2024 to 2031. The rising property values and the occurrence of natural disasters across the globe influence the commercial insurance market. Moreover, the expansion of businesses, both domestically and internationally, is a significant driver of the commercial insurance market.
Commercial Insurance
Market Analysis
The increasing value of commercial properties and the frequency of natural disasters are important factors driving the commercial insurance market. As property values rise, businesses require adequate insurance coverage to protect their assets. Additionally, the growing occurrence of natural disasters emphasizes the need for insurance coverage against property damage and business interruption.
Commercial Insurance
Industry Overview
- Commercial insurance, also known as business insurance, is a type of insurance coverage designed to protect businesses from various risks and losses that may occur during normal business operations. It provides financial protection against unexpected events such as lawsuits, accidents, natural disasters, property damage, and liability claims.
- Commercial insurance is essential for businesses as it helps protect their operations, assets, and financial well-being. It provides a safety net against unexpected events that could result in significant financial losses or even the closure of a business.
- By having the appropriate commercial insurance coverage, businesses can mitigate risks, comply with legal requirements, and gain peace of mind knowing that they are protected.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Commercial Insurance Market: Strategic Insights
Market Size Value in US$ 870.2 billion in 2023 Market Size Value by US$ 1517.7 billion by 2031 Growth rate CAGR of 7.2% from 2024 to 2031 Forecast Period 2024-2031 Base Year 2024
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Commercial Insurance Market: Strategic Insights
| Market Size Value in | US$ 870.2 billion in 2023 |
| Market Size Value by | US$ 1517.7 billion by 2031 |
| Growth rate | CAGR of 7.2% from 2024 to 2031 |
| Forecast Period | 2024-2031 |
| Base Year | 2024 |
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Commercial Insurance
Market Drivers and Opportunities
Availability of a Large Number of Insurance Providers to Drive the Commercial Insurance
Market Growth
- The commercial insurance market growth is primarily driven by the increasing number of businesses and the expansion of business coverage options. This growth has led to intense competition among insurance providers, resulting in a wide range of coverage options for businesses of all sizes.
- The availability of numerous insurance providers has also improved market conditions by offering a variety of insurance policies tailored to different business needs. Moreover, business owners are now more inclined to adopt commercial insurance based on the consistent premium rates offered in the market. This factor has greatly contributed to the rapid expansion of the commercial insurance market.
- According to a recent ranking by S&P Global Market Intelligence, State Farm Mutual Automobile Insurance Co. holds the top position as the largest property and casualty insurer globally. With an impressive US$ 77.59 billion in direct premiums written, State Farm has established itself as a leader in the industry.
Commercial Insurance
Market Report Segmentation Analysis
- Based on enterprise size, the commercial insurance market forecast is segmented into large enterprises and SMEs.
- The large enterprises segment is expected to hold a substantial commercial insurance market share in 2023. The growth of the large enterprises segment can be attributed to the heightened risk awareness among large corporations. As these companies expand their operations and encounter increasingly complex risks, they are actively seeking comprehensive insurance solutions. These solutions aim to protect their valuable assets, maintain uninterrupted business operations, and minimize potential losses. In response, insurance providers are tailoring policies to meet the specific needs of these large enterprises. This customization approach is fuelling the growth of the segment as it addresses the unique risk management requirements of big corporations.
- Additionally, regulatory compliance plays a crucial role in driving the large enterprises segment. Large enterprises often face complex regulatory requirements, which require them to obtain comprehensive insurance coverage to mitigate potential financial liabilities, which is anticipated to bring new commercial insurance market trends.
Commercial Insurance
Market Share Analysis by Geography
The scope of the commercial insurance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific is experiencing rapid growth and is anticipated to hold a significant commercial insurance market share in 2023. One key factor contributing to the growth of the Asia Pacific market is rapid economic development. As countries in the region continue to experience robust economic growth, businesses are expanding their operations, resulting in an increased demand for comprehensive insurance coverage. Expanding urbanization is another factor driving the growth of the commercial insurance market in the Asia Pacific region. As cities grow and populations concentrate in urban areas, businesses face unique risks and challenges. This has led to a greater awareness of the importance of risk management and the need for insurance protection.
Commercial Insurance
Market Report Scope
The "Commercial Insurance Market Analysis" was carried out based on type, distribution channel, enterprise size, industry vertical, and geography. Based on type, the market is segmented into commercial motor insurance, commercial property insurance, liability insurance, marine insurance, and others. Based on distribution channel, the market is segmented into agents & brokers, direct response, and others. Based on enterprise size, the market is segmented into large enterprises and SMEs. Based on industry vertical, the market is segmented into manufacturing, construction, IT & telecom, healthcare, energy & utilities, transportation & logistics, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Commercial Insurance
Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the commercial insurance market. A few recent key market developments are listed below:
- In April 2023, American International Group Inc. (AIG) and Stone Point reached a definitive agreement to establish a Managing General Agency (MG) focused on serving the high-net-worth market. Stone Point, a private equity firm specializing in global financial services investments, will partner with AIG to leverage its expertise and enhance product offerings for the high and ultra-high-net-worth segments. This strategic collaboration will enable AIG to capitalize on the strengths of this new venture and deliver superior solutions tailored to meet the unique needs of affluent individuals and families.
[Source: American International Group Inc. (AIG), Company Website]
- In December 2023, Aon plc, a prominent global professional services firm, has recently announced the signing of a definitive agreement to acquire NFP, a leading middle-market provider of property and casualty brokerage, benefits consulting, wealth management, and retirement plan advisory services. The acquisition will be made from funds associated with NFP's main capital sponsor, Madison Dearborn Partners (MDP), and funds affiliated with HPS Investment Partners.
[Source: Aon plc, Company Website]
Commercial Insurance
Market Report Coverage & Deliverables
The market report on “Commercial Insurance Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Distribution Channel, Enterprise Size, Industry Vertical, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The global commercial insurance market is expected to reach US$ 1517.7 billion by 2031.
The commercial insurance industry has experienced significant growth in recent years, primarily driven by the increasing number of businesses, and the expansion of business coverage options are the major factors that propel the global commercial insurance market.
The key players holding majority shares in the global commercial insurance market are AON PLC, Direct Line Insurance Group Plc, American International Group, Inc., Willis Towers Watson, and Allianz.
Crowdfunding and new investment platforms are impacting commercial insurance, which is anticipated to play a significant role in the global commercial insurance market in the coming years.
The commercial insurance market size is expected to grow from US$ 870.2 billion in 2023 to US$ 1517.7 billion by 2031; it is anticipated to expand at a CAGR of 7.2% from 2024 to 2031.
- AON PLC
- Direct Line Insurance Group Plc
- American International Group, Inc.
- Willis Towers Watson
- Allianz
- AXA
- Aviva
- Chubb
- Zurich
- Marsh Llc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Get Free Sample For