The commercial insurance market is set for significant expansion. Valued at $874.1 billion in 2023, it’s forecast to grow at a CAGR of over 7.5% from 2024 to 2032. The main catalyst is the increasing risk awareness among businesses as they grapple with threats such as cyberattacks, natural disasters, and liability concerns. Insurers are adapting by offering customised policies and risk management strategies.
In 2023, large enterprises held a dominant 67% market share. Their growing risk consciousness, along with the imperative to protect assets and ensure business continuity, is fueling the demand for tailored insurance. Meanwhile, the Asia Pacific region took the lead with a share exceeding 23% and is anticipated to experience the highest growth rate in the forecast period. Factors like rapid economic expansion, urbanisation, and enhanced risk management awareness are driving demand, while foreign investments and digital insurance progress are further boosting market growth.
The COVID-19 pandemic has been a game-changer, accelerating market growth. Businesses faced vulnerabilities like supply chain breakdowns, operational halts, and surging cyber threats, leading to a spike in demand for insurance. Insurers rose to the occasion, introducing novel coverage options and digital solutions to tackle pandemic-induced issues and evolving business needs.
Related topics
