Finding growth in small commercial insurance markets has been saved
Perspectives
Finding growth in small commercial insurance markets
Five strategic options for carriers
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.
The ever evolving commercial insurance landscape
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.
5 strategies for small commercial insurance growth

The path forward
Winning in the small commercial insurance space requires carriers to stand out in a competitive market and keep pace with the needs and expectations of growing small business owners and agents. To successfully undertake this endeavor, carriers should maintain a deep understanding of small business owners and address their specific coverage and protection requirements. Leading carriers in this space should also build agility in their operating processes across the agent and client journey, especially investing in technology, data, and analytics capabilities. Lastly, to win in small commercial insurance, carriers will need to simplify their product offering and overall business owner and agent experience across the value chain, ensuring interactions become seamless.
Read the full report to understand what it would take for carriers to play and win in small commercial insurance.
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IASP Services Leader
(Canada)
Partner
Deloitte Canada
Ph: +1 647 618 5387
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