According to a recent report by Allied Market Research the commercial property insurance market generated US$254.9 billion in 2023, and is growing at a CAGR of 11.3% – which means it will reach $724 billion in size over the next nine years.
The report isolates several factors that are driving growth in the marketplace, including a rise in natural disasters increasing demand, more regulatory requirements that are mandating insurance coverage, and technological advances that are increasing risk awareness.
Advanced technologies that are streamlining processes through the use of AI, better data analytics and the ability for companies to provide tailored insurance products, are all working to drive the growing segment forward.
And while the industry also faces a number of challenges – namely, a rise in insurance fraud, and the large-scale underwriting process becoming increasingly complicated, innovation looks set to address these head on in the coming years.
Insurtech Insights lists five world-leading commercial property insurers driving growth in the sector in 2023.
The Hartford
The Hartford specialises in offering commercial property insurance tailored to a diverse range of industries. These sectors encompass advertising, graphic design, barbershops, electrical contractors, financial institutions, pet grooming, and retail. What sets The Hartford apart is its unique approach of offering standalone commercial property coverage—a distinction we uncovered while researching various providers, as others typically bundled it within a Business Owner’s Policy (BOP) alongside general liability insurance.
The Hartford’s commercial property insurance include:
- Impressive Coverage Limits: The provider extends coverage with substantial limits, reaching up to $40 million per policy for the building.
- Dedicated Claims Team: The presence of an in-house claims team ensures swift and efficient claims processing, contributing to a seamless experience for policyholders.
- Round-the-Clock Availability: The Hartford’s services are accessible 24/7, underscoring their commitment to being there for clients whenever assistance is required.
- Convenient Online Policy Management: The provider offers the convenience of managing policies online, empowering policyholders with easy access to their coverage details.
- Swift Online Quotes: A notable advantage is the ability to obtain a quote online promptly, streamlining the process for potential customers.
The Hartford stands out by offering comprehensive coverage on its own terms. Its high coverage limits, dedicated claims support, constant availability, online policy management, and quick quote generation collectively make The Hartford a prominent choice for businesses seeking robust commercial property insurance solutions.
Next Insurance
With a user-friendly interface and coverage tailored to over 900 diverse industries, Next Insurance offers a comprehensive solution for businesses seeking personalised cover. Next Insurance also has a financial rating of A- (Excellent) from AM Best instills confidence in its ability to fulfill claims obligations. The provider offers:
- Intuitive User-Friendly System: Next Insurance takes the hassle out of navigating complex insurance options with an intuitive and user-friendly platform.
- Wide Industry Coverage: The provider’s extensive coverage spans across more than 900 industries, ensuring a tailored approach for diverse businesses.
- In-House Claims Processing: Benefit from a streamlined claims process with Next Insurance’s in-house claims support.
- Tailored Industry Coverage: Businesses from various sectors can find tailored coverage that caters to their unique needs.
- Extended Business Income Protection: The provider offers coverage for business income interruptions, providing financial security over a 12-month period.
An illustration of Next Insurance’s dedication to industry-specific coverage is its approach to construction contractors. The provider offers specialized property insurance that aligns with the unique needs of this sector. Notably, during the quote process, Next Insurance suggested adding roofing coverage based on the type of work mentioned, with a comprehensive explanation of the rationale and potential cost implications.
Hiscox
Hiscox focuses its commercial property coverage on smaller businesses, setting revenue limits at $3 million. While it offers coverage limits reaching up to $4 million, higher limits require direct provider contact due to online limitations. Deductibles range from $500 to $10,000, while building coverage is capped at $500,000. The policy structure targets small-scale operations, often encompassing one- to three-person businesses, such as home-based enterprises or those situated in rented offices. The company offers:
- Streamlined Online Quotes: Hiscox simplifies the insurance journey by offering online quotes, making the process efficient and user-friendly.
- Dedicated to Small Businesses: Hiscox stands as a dedicated insurer for small businesses, aligning its offerings to cater to their distinct needs.
- Instant Certificate of Insurance (COI): Benefit from the convenience of instant COIs for swift verification.
- Rapid Same-Day Coverage: Experience the advantage of same-day coverage availability, ensuring swift protection for your consultancy business.
- Global Coverage for International Consultants: Hiscox extends its reach to consultants with international clientele, providing global coverage.
- Robust Cybersecurity Resources: The provider equips you with a comprehensive range of cybersecurity resources, enhancing protection against digital threats.
According to AM Best, Hiscox has excellent financial stability with an impressive rating of A (Excellent). Hiscox also shines in the realm of commercial property coverage, particularly geared towards consultants. Industries covered include business, education, marketing, human resources (HR), information technology (IT), and management consultancies.
Obie
Obie is a pioneering insurtech that has carved a niche in landlord insurance. The company offers a seamless online experience that marries intuition and speed. With a streamlined digital process, customers can easily obtain quotes and secure policies online, allowing for same-day instant coverage that’s accessible 24/7. Notably, coverage encompasses both the building and detached structures, delivering comprehensive protection. Obie’s approach extends to furnished rental homes. For properties equipped with furnishings, Obie extends the opportunity to acquire commercial property insurance that safeguards the contents. The insurtech offers:
- A swift and user-friendly quoting system: Obie’s quoting system is characterized by its remarkable speed and user-friendly interface, simplifying the insurance journey.
- Specialised focus on landlord insurance: As a specialty insurer, Obie is exclusively devoted to landlord insurance, offering tailored solutions for this specific market.
- All-Inclusive Quotes: Every quote provided by Obie encompasses both property and liability coverage, ensuring holistic protection.
- States-wide availability: Obie’s services span across all 50 states, making its offerings accessible to a wide range of customers.
According to reports, Obie’s robust financial stability comes from its partnerships with reputable providers, which include the world;s largest reinsurer, Munich Re. The company boasts an impressive AM Best rating of A+ (Superior).
Nationwide
Nationwide is considered a top choice for wholesalers with warehouses in the commercial property space. Its offerings span various domains, encompassing auto, motorcycle, homeowners, pet, farm, life, and commercial insurance. The company also has a dedicated wholesale programme that features a building cap of 50,000 square feet and a substantial total insurable value (TIV) ceiling of $10 million. Further specifics include a $5 million building limit and a maximum sales cap of $5 million. Benefits included are:
- Ample coverage limits: Nationwide stands out with its high coverage limits, providing robust protection.
- Wide industry coverage: Nationwide extends its coverage umbrella to encompass various industries, catering to diverse needs.
- Round-the-clock claims service: Benefit from Nationwide’s 24/7 claims service, ensuring assistance when required.
- In-house claims handling: Nationwide’s in-house claims handling ensures a streamlined claims process.
- Enhanced insurable value limit: Larger buildings benefit from a higher total insurable value (TIV) limit, catering to diverse needs.
- Convenient online account management: Nationwide offers an online account feature for bill payments and policy management.
- Independent agent collaboration: Nationwide collaborates with independent agents, providing ongoing support throughout the policy lifecycle.
As one of the longest-established insurance providers in the US, Nationwide has a trusted marketplace reputation that comes from successfully operating for a century. As a Fortune 100 company, it also commands a prominent position by providing an extensive spectrum of insurance and financial services nationwide. It also holds an A+ rating from AM Best.
