The commercial insurance market is predicted to reach $845.28 billion in 2025, according to the latest data from The Business Research Company.
Key market drivers include economic growth, globalization of businesses, risk management practices, increased cyber threats, emerging liability risks and employee benefits, the data showed.
“Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living,” said WalletHub Analyst Chip Lupo.
“That’s why it’s crucial to establish your business in a state that will maximize your chances of success,” he added. “The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally.”
By 2029, the commercial insurance market is expected to reach $1235.92 billion at a compound annual growth rate of 10%. Major trends during the forecast period include digitization and insurtech integration, parametric insurance, sustainability and climate risk management, data analytics for risk modeling, product customization and flexibility, regulatory compliance and changes.
Major players in the commercial insurance market include Chubb, Travelers, Berkshire Hathaway, Progressive, Nationwide, Allstate and Liberty Mutual.
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.
The slideshow above illustrates the best states to start a business in 2025 as selected by WalletHub.
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