Small Business Insurers Weather the Pandemic Storm
January 03, 2022
HARTFORD, CT – January 3, 2022 – The small commercial insurance market is riding out the COVID-19 pandemic in a determined manner positing approximately 4.2% compound growth between 2017-2020, according to a new study by Conning. Additionally, the market continues to be attractive for insurers on the national, regional, and specialty levels. The sheer number of firms and multiple dimensions to split the market—including revenue, industry, and employee count—mean almost all insurers can find at least one niche to participate in.
“The impact of the recession on the small business community was severe, and small business tends to be overrepresented in the hardest‐hit sectors of the economy, such as retail, hospitality, and food services,” said Alan Walters, a Vice President, Insurance Research at Conning. “Our analysis of the market, however, shows much more favorable results than might have been anticipated, with strong support from the Treasury during the depths of the crisis and a sharp rebound in the small business segment in the second half of 2020 that was stronger than for either the midsized or large segments.”
The Conning study, “Small Commercial Insurance: Weathering the Pandemic Storm,” analyzes the small commercial insurance marketplace, including insurer market share, key insured segment trends, insurer responses to the pandemic, and evolving go-to-market strategies. As in prior editions of the study, quantitative market analysis of statutory data coupled with in-depth-interviews of key market participants provide the foundation of the research.
“The small commercial market remains a compelling segment due to the lack of a clear market leader, and the ongoing entrepreneurial spirit and competitive intensity of market participants,” said Steve Webersen, Head of Insurance Research at Conning. “The pandemic served to accelerate innovation in this space, driving greater and faster adoption of technology for sales and service, while also continuing to focus on agents and brokers as the primary distribution channel for the segment.”
“Small Commercial Insurance: Weathering the Pandemic Storm” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
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Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
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