The commercial insurance market is predicted to reach $933.91 billion in 2024, according to the latest data from Market Research Future.
Market drivers include increasing regulatory compliance requirements, growing complexity of business operations and rising frequency and severity of natural catastrophes, the report showed, with machine learning and artificial intelligence now changing how risks are evaluated and underwritten, leading to correct prices and quicker claims settlement.
The use of innovations like telematics in commercial auto insurance is revolutionizing risk management while personalizing coverages for carriers and their customers. In 2024, 82% of commercial auto insurers used telematics in their organizations after just 65% utilized the technology in 2023. Also in 2024, 60% of commercial insurers formed dedicated, multi-disciplinary telematics teams, with Loss Control being the most represented area.
Meanwhile, an increase in claims is predicted for commercial lines in workers’ compensation as the average age of U.S. workers rise. Roughly one in four employees will be 55 or older by 2033, according to the Bureau of Labor and Statistics (BLS).
Over the next 20 years, the BLS predicts a 117% spike in both the 65 and older and 75 and older age groups.
“As the average age of workers increases, there is a higher incidence of chronic health conditions and comorbidities, along with an increased likelihood of workplace injuries and longer recovery times,” McGowan Program Administrators said in a December 2024 report. “Workers’ compensation programs must implement tailored safety programs and ergonomic solutions, focusing on preventive care and health maintenance. These measures are essential to support older workers in maintaining their health and productivity, ensuring a safer and more efficient workplace.”
At the same time, technology will continue shaping workers’ compensation as innovations like AI and telemedicine impact the customer experience from underwriting and claims processes, to offering immediate access to medical professionals for injured workers.
The slideshow above illustrates five commercial insurance issues to watch in 2025 as selected by Charlie Sidoti, executive director of InnSure.
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