Direct Online Could Grow to 12% of Small Commercial Insurance Market by 2023

Changes in business owners’ online habits and new market entrants driving market demand: Novarica

Boston, MA (Feb. 13, 2019) – Over the past decade, selling small commercial insurance directly online to customers has gone from an outlandish idea to a reality. In a new report, Direct Online Small Commercial Insurance: 2019 Update, research and advisory firm Novarica discusses key issues affecting direct small commercial insurers, including a review of strategic options, and profiles 22 current market participants.

“As more small business owners conduct more of their business and personal lives online, the growth of online small commercial insurance is inevitable,” said Matthew Josefowicz, President and CEO, and lead author of Novarica’s new report. “While online sales are unlikely to exceed 10-15% of the market within the next five years, it nevertheless will be an important segment for small commercial insurers-especially for those who are turning to small commercial as a bulwark against pressures on their personal lines businesses.”

Among the key findings of the report are:

  • Changes in business owners’ online habits likely to drive market demand. Younger business owners are comfortable buying coverage online, and a significant portion expressed preference for buying that way. Owners of all ages are comfortable managing their businesses online.
  • InsurTech entrants designing experiences to meet customer need. Well-funded, customer-focused digital distributors are demonstrating the value of offering simplified products and experiences focused on the moment of customer need.
  • Major commercial players are making moves. While no one has yet committed the significant advertising dollars that drove the transformation of the personal lines markets, top-tier commercial insurers are entering the market through dedicated operations and acquisitions.

A preview of the brief is available online.


Over the past decade, selling small commercial insurance directly online to customers has gone from an outlandish idea to a reality. While only an estimated 2-3% of small commercial sales occur online today, the market could increase to 12% by 2023 as digital distributors, regionals, and national insurers devote more attention to growing in this important segment. Insurers seeking to compete must understand evolving buyer needs and operational prerequisites as well as traditional and emerging competitors.

Click here for the table of contents or to access the report.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and of more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit

Source: Novarica

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