Business Insurance Statistics, Facts And Trends for 2022

The latest trends and research for the insurance industry may have profound impacts for decision makers and investors alike. From the consumers’ perspective, it may be especially important for business owners across all industries to carefully evaluate their business insurance needs as financial aid in the event of loss, disaster, or economic turmoil which may be a likely possibility.

Business insurance is a term that broadly refers to a category of insurance coverage intended for purchase by business entities for financial protection in the case of damage to property, lawsuit protection, or contract disputes. Also known as commercial lines insurance, this business factor aids in helping the US economy run smoothly by protecting businesses from a potential loss that wouldn’t be able to be covered out of pocket. The following is a breakdown of current business insurance statistics, facts, and trends that may be useful for owners to gain further insight. 

1.  Leading Cause of Liability

In recent years, studies have shown that insurance claims from losses due to fire or explosions accounted for approximately 24 percent of all claims worldwide in terms of claim value.

2.  State with Highest Product Liability Insurance

The value of direct premiums earned by Texas’s product liability insurance market was valued at $356, 087 million American dollars. 

3.  The Price of Peace of Mind

As per a study, gross insurance premiums worldwide amount to $5.3 trillion US dollars. 

4.  Women in Insurance

Insurance CEOs recently pledged to increase gender diversity, and their efforts have proved successful. Recent data shows that 1.6 million women work within the insurance industry, which is far more than 47 percent of the total US workforce. 

5.  The Impact of Covid-19 the Business Insurance Market 

Market research suggests that the Covid-19 global pandemic has caused business owners to become more open towards insurance. However, experts predict that total insurance premium volumes will return to pre-pandemic ranges in the near future. 

6.  Volume of Corporate Loss Claims 

According to a recent study, 90 percent of the corporate insurance loss claims made globally amounted to an approximate value of 50 000 euros. 

7.  Top Commercial Insurers

Chubb and Travelers earn 5.5 percent of the current commercial insurance market, suggesting that when combined, these top insurers make up approximately 11 percent of the entire commercial line insurance. 

8.  Global Market Capacity

The global liability insurance market capacity amounts to 3.3 billion US dollars as per the most recent research. 

9.  Unfortunate Events Rescued by Commercial Insurance

As per a Hartford study, the leading financial services company found that unexpected, unfortunate events occur more frequently than most small business owners realize. Approximately 40 percent of small businesses are likely to incur a property or liability loss within 10 years of business. 

10.  Small Business Insurance Claims Online

More than one-third of small businesses, approximately 36 percent, reported they prefer to make insurance claims online. 55 percent of small business owners said that they prefer to have access to track their online claims; this suggests convenience and accessibility come before most other factors in today’s digitally charged age. 

11.  A Thriving Industry

According to the National Association of Insurance Commissioners, there were 5, 929 registered insurance companies accounted for in the US, suggesting that the insurance industry may be thriving more than ever before. 

12.  Global AI Insurance Premiums

New data indicates that the value of artificial underwritten insurance premiums is expected to exceed $20 billion by the year 2024, which is an increase estimated at $1.3 billion. 

13.  When Disaster Strikes 

Although it may be tempting for small businesses to skip over insurance policies that are not mandatory according to the law, some policies may have the potential to save thousands of dollars when disaster strikes. According to research, insurance policies like workers’ compensation and employment practices liability will save a business thousands of dollars. 

14.  A Global Overview

North America accounted for what may be the highest share of commercial insurance, holding almost half of the 2020 global market share. However, Asia-Pacific is assessed to register the highest compound annual growth rate of commercial insurance. 

15.  Commercial Insurance Revenue Research

According to a report, the worldwide commercial insurance market rendered $690.33 billion US dollars within the past year and is estimated to increase to an approximate figure of $1, 613.31 billion by the year 2030 which is a 9.7 percent increase.  

16.  Most Frequent Claims For Business Insurance

  • Theft or burglary: 20 percent of small businesses claim insurance as per theft incidents.
  • Pipe damage: 15 percent of businesses filed insurance claims for water and freezing damage due to ill-maintained pipes.
  • Mother nature: Due to hail and wind damage, there has been a 15 percent report of insurance claims from business owners.
  • Slip and falls: Within many corporate and small business environments, accidents do tend to happen. 10 percent of business owners claimed insurance over customer slip and falls. 

17.  Top 3 Best Business Insurance Companies

  • Travelers, a popular commercial property insurer broker, has extensive business insurance experience. With more than 20 specializations, this business insurance broker has been ranked as a top company in the US. 
  • State Farm may likely be the best overall small business insurance company which offers multiple types of coverage through a nationwide network of skilled agents. 
  • As a huge international insurer, Hiscox offers niche packages for business insurance for independent contractors. According to statistics, Hicox covers 49 states throughout America. 

Sources and References