Today’s insurance industry faces wide volatility—from macroeconomic conditions to evolving customer expectations to innovative incumbents and beyond. Discover five ways carriers can adapt and grow in the small commercial insurance market amid these challenges.
Since 2020, the property and casualty (P&C) insurance market has experienced significant volatility in underwriting profitability. The commercial lines market has also experienced headwinds in loss trends, and a more flexible regulatory environment and strong underwriting discipline have enabled profitable performance among the top-performing commercial insurance market players—driving a 94% industry combined ratio in calendar year 2022, a better performance of 15 percentage points compared to the personal lines combined ratio of 109%. Within the commercial insurance sector, the small commercial insurance market could provide an alternative source of growth for insurance carriers looking to expand their business portfolios.
To maximize opportunities for growth in today’s small commercial insurance market, here are options for how carriers can approach the market.