SME insurance is seen to reach $417b through 2032

Smaller organisations lack the resources and experience to form a separate risk department.

The SME insurance market was valued at $417.2b in 2023 and is projected to grow at a compound annual growth rate (CAGR) of over 7% between 2024 and 2032, according to Global Market Insights. 

Rising awareness of business risks is driving market expansion as companies increasingly rely on insurance for financial protection.

Businesses are prioritising risk management based on their specific needs. Last year, small enterprises had the largest share of 49%.  

“Smaller organisations may lack the resources and experience to form a separate risk management department and, hence, depend on insurance products to protect against potential hazards, resulting in a greater insurance penetration rate in this sector,” the report said.

For example, companies exposed to cyber threats are opting for cyber liability insurance, whilst physical stores focus on property insurance to mitigate potential damage. 

The shift toward digital business models is also fueling demand for specialised insurance products tailored to address emerging risks in the digital landscape.

Advancements in technology are transforming how insurers assess risks. Traditional sector-wide risk profiles are being replaced by data-driven strategies that leverage big data and analytics to provide personalised risk assessments. 

This enables insurers to offer customised policies, competitive pricing, and innovative solutions aligned with each SME's unique operations and risk profiles, further supporting market growth.