By broad product category, it segmented in 2017 between around USD 218 billion due to commercial liability insurance, USD 45 billion to commercial MAT insurance, USD 192 billion to commercial motor insurance, USD 201 billion to commercial property insurance and USD 75 billion to other types of commercial insurance (e.g. legal protection, trade credit).
Looking in more detail at specific product classes within those categories, particularly valuable market segments included workers’ compensation insurance (at around USD 83 billion due mainly to its vast size in the US), goods-in-transit insurance (USD 28 billion) and professional indemnity insurance (USD 20 billion, excluding medical malpractice cover).
Stated Francisco Leitão, a Consultant at Finaccord: "By far the most rapidly growing product class in recent years has been cyber insurance. Both stand-alone premiums and cover packaged with other policy types are understood to have surged in value and the global outlook for this product class is also very favourable as many types of organisation are keen to protect themselves from cyber risks."
As well as segmenting the value of the global commercial lines market by product category and class, Finaccord’s new series also breaks it down both by size of insured entity and by customer activity. By size of insured entity, the worldwide split of premiums is between around USD 97 billion to micro entities (comprising self-employed individuals and entities with up to nine employees), USD 311 billion to small and medium-sized entities (with between ten and 249 employees) and USD 321 billion to large and very large entities (with more than 250 employees). The market value among large and very large entities is smaller than might be expected due to their extensive use of captive and self-insurance arrangements.
As for the breakdown by customer activity, Finaccord’s analysis indicates that commercial lines insurance acquired by manufacturing enterprises was the largest segment in 2017, with premiums worth around USD 111 billion worldwide, followed by agriculture, fishing and forestry at USD 72 billion (boosted by the huge value of this segment in China and the US), and retail and wholesale distribution at USD 68 billion.
"With global compound annual growth rates of close to 6% in each case, premiums for commercial lines cover bought by financial institutions, enterprises in the mining and minerals sector, and technology and media firms are forecast to increase most rapidly through to 2021”, concludes Francisco Leitão. "However, with respective worldwide values of around USD 29 billion, USD 17 billion and USD 17 billion in 2017, these are quite small in comparison to the largest customer activity segments such as manufacturing."
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