The global commercial insurance market for small and medium-sized enterprises (SMEs) was valued at $111.83 billion in 2024 and is projected to grow to $119.76 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.1%, according to The Business Research Company.
This growth has been fueled by increased awareness of business risks, regulatory compliance requirements, rising losses from natural disasters, and a growing number of SMEs being formed.
By 2029, the market is expected to reach $155.35 billion, growing at a CAGR of 6.7%. This expansion will be driven by rising demand for customized insurance products, increasing exposure to cyber risks, the growing adoption of Insurtech solutions, and a shift toward bundled or all-in-one policies.
Key developments in the sector include advancements in underwriting and claims technology, more personalized policy offerings, investments in digital infrastructure, blockchain applications in insurance, and the rise of customer self-service platforms.
North America currently leads the global SME insurance market, while the Asia-Pacific region is expected to experience the fastest growth in the coming years.
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