Strong growth forecast for global commercial property insurance market

The global commercial property insurance market is forecast to reach $724bn by 2032, a compound annual growth rate (CAGR) of 11.3% from 2023 to 2032, according to a report from Allied Market Research. In 2022, the market generated $254.9bn. The market is driven by factors such as increasing awareness of risk management among businesses, stringent regulations mandating insurance coverage, and the growing frequency and severity of natural disasters and man-made incidents, said Allied Market Research. Additionally, the expansion of businesses globally is fuelling demand for property insurance. However, the report notes that the market is restrained by challenges including rising insurance fraud, volatility in property values, and the complexities of underwriting large-scale properties. “Despite these restraints, opportunities lie in the adoption of advanced technologies like AI and data analytics for risk assessment, the development of customised insurance products, and the potential for market expansion in emerging economies where insurance penetration is relatively low, presenting a favourable landscape for sustained market growth,” states the report. “Based on coverage, the open perils segment held the highest market share in 2022, accounting for around three-fifths of the global commercial property insurance market revenue, and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the fact that offering multiple coverage alternatives may become a growth element as risks and requirements of firms vary,” the report states. The large enterprises segment held the highest market share in 2022, accounting for around three-fifths of the global commercial property insurance market revenue, the report finds. The manufacturing segment held the highest market share in 2022, accounting for nearly a fifth of the global commercial property insurance market revenue. Allied Market Research said this is attributed to the growing demand for equipment and technology finance in the healthcare industry to protect physical assets such as factories, warehouses, and machinery. Stricter regulations regarding safety standards and environmental protection drive manufacturers to invest in comprehensive insurance coverage to mitigate compliance risks. The healthcare segment is projected to see the highest CAGR of 16.4% from 2023 to 2032. The significant factor driving the segment growth is the escalating value of medical equipment and technology, the report says. In terms of regions, North America held the highest market share in terms of revenue in 2022, and will maintain its dominance by 2032, says the report. However, the Asia-Pacific region is expected to witness the fastest CAGR of 15.0% from 2023 to 2032. “The region is likely to dominate the market during the forecast period, as companies are targeting more on risk management and mitigating potential losses, leading to higher adoption of commercial property insurance. These factors drive the interests of market players to collaborate and expand their market presence and product offerings across untapped opportunities,” says the report.

Strong growth forecast for global commercial property insurance market

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