Aftershock: COVID-19 Pandemic’s Impact on Small Commercial Insurance Premium
U.S. insurance carriers’ potential small commercial insurance premium loss ranges from US$4.9 billion to US$19.5 billion
Boston, MA (July 22, 2020) – Beginning in March, 2020, a range of government-imposed lockdowns and stay-in-place orders effectively brought the U.S. economy to a grinding halt, and even with government backstops in place, many small businesses are not likely to survive several months without revenue. Closures of these small businesses could have a significant impact on carriers’ annual written premium intake, which could prove problematic for carriers with a heavy presence in the small commercial insurance market.
This report estimates the impact of small-business closures and the resulting loss of small commercial premium in the United States. While it shows premium for the industry as a whole, it also drills down into specific industry classes that are likely to experience more turmoil than others. Premium loss calculations are based on data from the U.S. Census Bureau and North American Industry Classification System (NAICS), nonbindable quotes received from small-business insurance aggregator websites, and the author’s knowledge of small commercial insurance.
This 50-page Impact Report contains 37 figures and 12 tables. Clients of Aite Group’s P&C Insurance service can download this report, the corresponding charts, and the Executive Impact Deck.
Click here for the online summary or to download the table of contents.
About Aite Group
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us at www.aitegroup.com.
Source: Aite Group
Tags: Aite Group, commercial lines, coronavirus, epidemic, small business, United States (USA)
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