Nigeria’s insurance industry could have significant room to expand its commercial business by targeting small and medium-sized enterprises (SMEs), as the segment is projected to grow faster than the broader global commercial insurance market over the next five years.
A new commercial insurance market outlook projects that premiums generated from SMEs will expand at a compound annual growth rate of 7.5 percent through 2031, above the 5.86 percent projected growth rate for the overall commercial insurance market.
The report, “Commercial Insurance – Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031),” published by ResearchAndMarkets, identifies underinsured SMEs, cyber coverage, embedded insurance, digital distribution and artificial intelligence-enabled underwriting among the major opportunities shaping the commercial insurance market.
The global commercial insurance market is projected to rise from $1.47 trillion in 2025 to $1.56 trillion in 2026 and reach $2.07 trillion by 2031.
While large enterprises accounted for 67.1 percent of commercial insurance premiums in 2025, the report noted that SMEs represent a particularly strong growth opportunity as insurers increasingly use digital platforms and automated processes to lower the cost of acquiring and servicing smaller businesses.
According to the report, digital acquisition, embedded insurance, automated quoting and AI-assisted underwriting are making it easier for insurers to serve SMEs, a segment that has traditionally been more difficult and costly to reach through conventional distribution models.
The opportunity extends beyond conventional property and liability covers, with cyber insurance emerging as another potentially significant source of commercial insurance growth.
The report cited a Geneva Association finding that only 10 percent of SMEs worldwide have cyber insurance, despite the increasing exposure of businesses to cyberattacks and other digital risks.
It also referenced a 2026 Munich Re survey in which nearly nine out of 10 C-level executives said their organisations were not adequately protected against cyberattacks.
Global cyber gross written premiums reached $14 billion in 2025, with SMEs and mid-market businesses accounting for a significant portion of new demand.
The report said insurers were responding to the gap by simplifying cyber products, accelerating digital quotations and bundling cyber protection with general liability and professional liability policies.
For insurers operating in markets such as Nigeria, the development highlights the potential of combining traditional commercial insurance with simpler, digitally distributed products aimed at smaller businesses.
The report noted that embedded insurance is also expanding the ways in which commercial policies can be sold, allowing insurance protection to be incorporated into existing digital transactions and business platforms.
An example cited was the partnership between Paydibs and Great Eastern General Insurance in Malaysia, which introduced embedded business protection through digital payment terminals for micro, small and medium-sized enterprises.
In Spain, BBVA Allianz recorded a 40 percent increase in SME premiums in 2025, which the report said demonstrated the growth potential of digitally enabled bancassurance.
Beyond SMEs, the report identified climate-related losses as another major force reshaping commercial insurance, particularly property and business interruption coverage.
Commercial property accounted for 29.8 percent of the global commercial insurance market in 2025, making it the largest line of business. However, insurers are becoming more selective in high-risk locations as climate volatility drives higher catastrophe losses and forces changes in pricing and capacity.
Munich Re recorded $108 billion in insured natural catastrophe losses globally in 2025, compared with total economic losses of $224 billion, leaving a protection gap of about $116 billion.
The report also expects professional and financial lines to record stronger growth, with the segment projected to expand at an 8.8 percent CAGR through 2031. Growth is being driven by emerging risks linked to artificial intelligence governance, digital services, directors’ and officers’ liability, errors and omissions and shareholder actions.
Regionally, North America remained the largest commercial insurance market in 2025, accounting for 41.6 percent of global premiums, while Asia-Pacific is expected to be the fastest-growing region, with a projected 7.9 percent CAGR through 2031.
The Middle East and Africa remain smaller commercial insurance markets but, according to the report, offer opportunities linked to infrastructure, energy and regional trade.
For Nigeria’s insurers, the global trends point to opportunities in developing simpler commercial products, improving digital distribution and expanding protection among smaller businesses that remain outside the formal insurance market.
