Commercial Property Insurance Market Value to Reach

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London, March 06, 2024 (GLOBE NEWSWIRE) — Global commercial property insurance market is expected to witness a remarkable surge, reaching a valuation of US$538.8 Bn by 2030, marking a considerable increase from the US$251.5 Bn attained in 2022. This growth is driven by a projected impressive CAGR of 11.5% during the forecast period from 2023 to 2030, indicates a recently published report by Fairfield Market Research.

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REPORT SCOPE

Report Attributes Details
Base Year 2022  
Forecast Year 2023 to 2030
Market Size in 2022 US$251.5 Bn
Estimated Market Size in 2030 US$538.8 Bn
CAGR 11.5%  
Growth Drivers
  • Personalised and Usage-based Insurance Gains Traction
  • The growth of agents, and brokers is driving the market growth,
  • The increasing frequency and severity of natural disasters
Segmentation
  • By Application (Open Perils, Named Perils)
  • By Industry (Manufacturing, Construction, IT and Telecom, Healthcare, Energy and Utilities, Transportation and Logistics)
  • By Coverage Type (Buildings Insurance, Contents Insurance, Flood Insurance, Earthquake Insurance)
Regional Coverage
  • North America (US, Canada)
  • Europe (Germany, UK, France, Italy, Turkey, Russia, Rest of Europe)
  • Asia Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, Rest of Latin America)
  • The Middle East & Africa (GCC, South Africa, Rest of the Middle East & Africa)

The global market for commercial property insurance is projected to experience significant expansion as a result of the rising demand for both open perils and named perils coverage choices across numerous industries. Because it provides comprehensive protection and covers a wide range of risks unless specifically excluded, open perils coverage, also known as all-risk coverage, is growing in favour.

As key links between insurers and companies looking for insurance coverage, agents and brokers play a crucial role. They play a vital role in guiding businesses through the confusing world of commercial property insurance by providing information, guidance, and support. Adaptability is the new resilience and commercial property insurance must evolve to meet the dynamic needs of businesses in an ever-changing risk landscape,” says the company’s analyst.

Cyber insurance demand has sharply increased in the wake of the increasing frequency and complexity of cyber-attacks. Businesses from a variety of industries understand how crucial it is to protect their digital assets, sensitive data, and operations against cyber threats. As a result, insurance companies have a fantastic opportunity to diversify their product lines and build up thorough cyber risk coverage.

A variety of safeguards are included in cyber insurance, such as coverage for data breaches, ransomware attacks, business interruptions brought on by cyber catastrophes, legal costs, and administrative penalties. Insurance companies have the ability to design specialised policies that address certain sector risks and cyber threat environments.

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Key Takeaways

  • The North America region is anticipated to account for a notable share of the global commercial property insurance market, owing to various factors such as economic conditions, natural catastrophes, and climate change.
  • The IT and telecom category is highly prevalent in the market for commercial property insurance market.
  • The market for commercial property insurance is expanding in Asia Pacific due to the rapid economic growth and technological advancements.

Insights into Segmentation Analysis

The Open Perils Category Takes the Charge, Specialised Coverage in Demand

In the insurance market, the open dangers category still dominates the named perils divisions. Open perils, also known as all-risk coverage, provide a greater and more thorough level of protection by including a wide variety of risks unless specifically excluded by the policy. Because it offers protection against unanticipated disasters that a specified perils policy might not cover, this flexibility is very appealing to businesses and property owners.

Alternatively, designated perils coverage expressly covers a specific risk, offering a more focused but less adaptable strategy. The desire for open perils persists despite organisations’ growing awareness of the necessity of complete coverage and adaptability to changing hazards. Furthermore, the named perils category is projected to experience the fastest market growth. Named hazard insurance, which specifically covers certain risks, is becoming more popular for a number of reasons.

Businesses are becoming more risk-aware and are looking for specialised insurance coverage for dangers that have been recognised, such as cyberattacks, natural catastrophes, or other perils. With this focused approach, they can customise their insurance to their unique risk profiles and lower premiums by omitting hazards they believe to be less important.

The IT and Telecom Industry Maintains a Dominant Share

In 2022, the IT and telecom category led the market growth. The IT and telecom industry is at the forefront of technical development and digitisation, which comes with a distinct set of hazards. This industry has sophisticated infrastructure and priceless digital assets and is very vulnerable to cyber threats and business interruptions.

Businesses in the IT and telecom sectors are becoming increasingly aware of the pressing need for comprehensive insurance coverage as a result of the frequency and sophistication of cyber-attacks.

Moreover, the healthcare category is expected to grow fastest in the commercial property insurance market during the forecast period. The healthcare industry, marked by its critical role in society and the ever-evolving landscape, necessitates tailored insurance solutions to address specific risks associated with medical facilities, equipment, and patient care.

SMEs Continue to Register the Topmost Consumer Sector

The small and medium enterprises segment dominated the market in 2022. SMEs often need specialised, specialised insurance solutions to fully safeguard their operations and assets because of their size and resources. The number of SMEs rises as economies expand and entrepreneurship flourishes, which helps to fuel a growth in demand for commercial property insurance.

As a result of realising this trend, insurers have created specialised products that are tailored to the varying risk profiles and financial limits of SMEs. Additionally, SMEs are forced to seek insurance coverage as a result of changing regulatory environments that need specific insurance for firms to operate legally, which is fueling the expansion of this market sector.

The large enterprises category is expected to experience the fastest growth within the forecast time frame. Large enterprises often have complex operations, substantial assets, and a wide range of risks to manage. As these businesses recognise the importance of comprehensive insurance coverage to safeguard their extensive investments, they are increasingly seeking specialised and tailored insurance solutions.

Key Report Highlights

  • The expansion of insurers’ presence in emerging markets is made possible by the business world’s increasing globalisation. Businesses that grow globally confront a variety of hazards that call for specialised insurance coverage.
  • There is a growing demand for customizable insurance solutions that cater to the specific needs and risk profiles of individual businesses.
  • With the increasing frequency and severity of natural disasters due to climate change, businesses face higher risks of property damage. This drives the need for robust insurance coverage

Insights into Regional Analysis

North America experiences a wide range of natural disasters, including hurricanes, wildfires, and earthquakes, leading to a significant demand for insurance coverage. Moreover, insurers in the Asia Pacific region are leveraging technology to enhance customer engagement, improve risk assessment, and expand their distribution channels, catering to the diverse needs of businesses in the region.

North America Retains Supremacy on Account of an Established Enterprise Culture of Insurance Protection

  • In the industries, commercial property insurance adoption is anticipated to dominate in the North America region. A number of reasons contribute to the region’s supremacy in income generation, including a thriving insurance market with a broad range of insurers providing specialised commercial property insurance products.
  • North American companies frequently have intricate operations and priceless assets, necessitating thorough insurance protection against a variety of dangers, such as natural disasters, cyber threats, and more.
  • North America’s legislative frameworks frequently require or encourage enterprises to carry insurance, which raises the price of commercial property insurance. The size of the market is significant in part because of the region’s increased risk awareness, and culture of risk reduction.

IT Industry’s Explosion Uplifts Long-term Growth Outlook of Asia Pacific

  • The region of Asia Pacific is anticipated to experience tremendous growth in the IT and telecom sectors during the projection period, and this expectation is well-founded.
  • Asia Pacific has become a hotspot for technology advancement, digital change, and quick urbanisation on a global scale.
  • The need for cutting-edge technical products, internet access, and IT services is being driven by the region’s expanding middle class, which has growing purchasing power. The development of the IT and telecom sector is also being fueled by government programs and investments in digital infrastructure, smart cities, and Industry 4.0 technology.

Key Companies in the Global Commercial Property Insurance Market

  • Zurich Insurance Group
  • American International Group, Inc.
  • The Travelers Indemnity Company
  • Allianz SE
  • Chubb Limited
  • Allstate Insurance Company
  • Berkshire Hathaway Homestate Companies (BHHC)
  • Progressive
  • Liberty Mutual Insurance Company
  • AXA Group
  • AIG
  • The Hartford
  • Aon Plc
  • Direct Line Group
  • Aviva

Global Commercial Property Insurance Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – (By Coverage Type Coverage, By Application Coverage, By Enterprise Size Coverage, By Industry Vertical Coverage, By Geographic Coverage and By Company):

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