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Insurers target micro accounts as US small commercial growth push
The US small commercial insurance market is estimated at $158.0 billion in direct premium by the end of 2025, but Conning says segment differences require tailored underwriting, products, distribution, and technology.
The US small commercial insurance market is estimated to reach about $158 billion in direct premium by the end of 2025, and new research points to micro accounts as a key area for insurers pursuing growth, according to Insurance Business. The study says the market is not uniform, spanning everything from sole proprietors and micro firms to accounts that are beginning to overlap with the middle market.
Conning, the study’s author, found that businesses at different ends of the segment have distinct economics, underwriting requirements, and distribution needs. It concluded that carriers expanding their appetite must align underwriting, product design, service levels, distribution approach, and technology with the specific segments they want to target.
Insurance Business also highlighted Conning’s view that carriers should make it easier for agents to place the right risks, while using technology to improve speed and consistency without eliminating necessary judgment. Conning estimates there are about 29.0 million small businesses that are more actively addressable for carriers and distribution partners, below a figure of 34.8 million referenced in the research.