The opportunity insurers have with the small commercial market is tremendous. According to IBISWorld in 2022, the market size for small commercials was $240.2 billion (based on revenue), having grown by 4.4 percent over the past five years. That is a faster pace than the U.S. economy in the same period. Further, the market is more fragmented than other traditional lines in property/casualty insurance, like personal lines, for example, which makes it an attractive target for investment by many carriers.

Numerous carriers that have been known to traditionally play in the personal lines space have ramped up investments in that area, and that is happening on a global scale. In a report earlier this year, McKinsey called small and medium-sized enterprises (SMEs) “the big opportunity” for insurers.