Commercial property insurance to see 10.4% CAGR by 2028

Persistent economic climate significantly influences insurers' underwriting practices and pricing strategies.

In 2022, the world’s commercial property insurance was valued at $247.8b but is forecasted to reach a compound annual growth rate of 10.39% by 2028.

The "Commercial Property Insurance Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028" report by ResearchAndMarkets.com indicated that insurers must adapt to rising trends to meet evolving business needs and navigate global challenges effectively.

Key market drivers of the sector include:

• Economic conditions impact demand. Booming economies lead to expansions and increased insurance needs.
• Emerging risks like climate change and cybersecurity reshape the market, driving insurers to collaborate and innovate.
• Regulatory changes affect policies, promoting sustainability and transparency.
• Market competition drives insurers to offer tailored solutions and enhanced customer service.

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Key market challenges: 

• Climate change and cybersecurity threats pose significant risks.
• Compliance with sustainability and environmental regulations is essential.
• Market competition and pricing pressures persist.

Key market trends:

• Climate resilience and sustainability drive insurers to adopt comprehensive risk assessment and offer green incentives.
• Technology integration enhances risk assessment and claims management.
• Business continuity planning expands coverage beyond property damage, focusing on resilience amid disruptions.
• International expansion sees a rise in demand for global property insurance programs, prompting insurers to offer multinational solutions.