SME commercial insurance market to hit $155b by 2029

The market was valued at $111.83b in 2024.

The global commercial insurance market for small and medium-sized enterprises (SMEs) is projected to grow to $119.76b in 2025, representing a compound annual growth rate (CAGR) of 7.1%, according to The Business Research Company.

The market was valued at $111.83b in 2024. Growth in recent years has been supported by greater awareness of business risks, regulatory compliance requirements, rising natural disaster losses, and an increase in SME formation.

By 2029, the market is forecast to reach $155.35b, growing at a CAGR of 6.7%. 

Expansion will be driven by rising demand for tailored insurance products, growing cyber risk exposure, wider adoption of Insurtech solutions, and interest in bundled or all-in-one policies.

Key developments include advances in underwriting and claims technology, greater policy personalization, investment in digital infrastructure, blockchain-based insurance applications, and customer self-service platforms. 

North America currently leads the global SME insurance market, whilst Asia-Pacific is expected to record the fastest growth over the next few years.