5 Small Businesses That Have High Failure Rates

4. Reinsurance

Industry Value (2022): $148.27 Billion

Net Margin (2022): 1.22%

A reinsurance business provides insurance services to insurance companies. Poor underwriting along with poor investment choices results in business owners not having enough money when claims arise. Such often results in business owners running out of cash to meet daily expenses. However, timely decision-making and mentorship may avoid such issues.