Commercial insurance set to grow at 7.5% CAGR by 2032

Asia Pacific led the market with a share of over 23% in 2023.

The commercial insurance market was valued at $874.1b in 2023 and is projected to grow at a compound annual growth rate (CAGR) of over 7.5% between 2024 and 2032, according to Global Market Insights. 

Increasing risk awareness is driving demand as businesses address threats such as cyberattacks, natural disasters, and liability issues. 

Insurers are responding with customised policies and risk management solutions to meet evolving business needs and uncertainties.

In 2023, large enterprises accounted for approximately 67% of the market share. 

Growing risk awareness amongst big corporations, coupled with the need to safeguard assets and maintain business continuity, is driving demand for customised insurance solutions in this segment.  

The Asia Pacific region led the market with a share of over 23% in 2023 and is expected to witness the highest CAGR during the forecast period. 

Rapid economic growth, urbanisation, and increased awareness of risk management are fueling demand for commercial insurance. 

The region's attractiveness to foreign investments, alongside advancements in digital insurance solutions, is further accelerating market expansion.

The COVID-19 pandemic accelerated market growth by increasing risk awareness. 

Businesses experienced vulnerabilities like supply chain disruptions, operational interruptions, and rising cyber risks, prompting greater demand for insurance products. 

Insurers introduced innovative coverage options and digital solutions to address pandemic-related concerns and changing business requirements.