Future of SMBs and Commercial Insurance

For a long time, SMBs and start-ups have endured a financial gap from banks and insurers limiting their ability to face risk and grow. The challenge is particularly noticeable in the SMB market: how insurers can better serve a critical segment that is facing major pressure of its own with low cost and uncertain regulatory constraints.

COVID-19 has accelerated a number of existing trends for SMEs, from the products they are prioritizing to how they prefer to engage with insurance carriers. SMEs also learned they were not covered for certain things during the pandemic and have begun questioning the relevance of some products—in particular, business interruption policies. This dynamic provides insurers with an opportunity to capture more of the SME market by focusing on thriving segments, developing new products, and rethinking customer journeys.

It has now become essential for insurers to embrace digital models and leverage data to bring precautionary solutions to SMBs and start-ups that can solve their business requirements. 

SMBs and start-ups are an attractive market for insurers commanding higher policy premiums than personal insurance. However, due to the challenging market, they have different and complex needs. The SMEs market often ends up needing the personalized advice of an agent or broker but is unwilling to pay for the premium services tailored to bigger corporate clients.

So, the questions arise that can digital channels streamline this process, and are our business customers ready to purchase insurance online?

According to a survey by PwC network, appended are the findings:

  1. Only 24% of small businesses purchased their most recent business insurance online, perhaps due to limited offerings, but change is coming. Of the small businesses that expect to switch providers in the next five years, 48% say they’d prefer to buy online—and 65% say they are quite or very likely to do so in the future.

  2. Today’s small businesses are confident about their business goals and insurance needs, with 74% reporting they were ‘quite’ or ‘very’ confident in their business insurance needs. However, 18% did not have liability coverage and only 16% had cyber insurance, despite an additional 46% saying it could be applicable to their business.

  3. Despite a strongly held view that business insurance purchasing behavior is determined by factors such as the sector a company is in, our survey revealed that attitudes are strongly influenced by personal insurance purchasing habits. Of the respondents who bought their personal insurance online, 70% said they would prefer to buy their business insurance online too.

  4. Younger companies are more likely to be born digital. When predicting if a company will purchase insurance online, the age of the business is twice as important as the number of employees. Companies that have been operating for less than a year are 20% more likely to purchase their future insurance online than an otherwise identical well-established company.

  5. Small businesses want a consistent and connected digital offering across the customer journey, from being able to buy a policy online (36%) to making claims (36%), tracking claims (55%), or amending a policy (38%).

  6. 53% of respondents favored a ‘one-stop digital shop’ for outsourced services, including accounting, investing, legal, recruiting, and banking. Interestingly, they want more from their insurers: 45% would be willing to purchase legal cover, 26% would purchase risk advice, and 47% would be willing to use sensors to reduce their premium.

In a nutshell, A change that transforms the way SMEs/Businesses/ Corporates/ Start-ups buys, employees or liability or indemnity insurance. They need simple, digital, self-risk assessment, self-managed, and instant process /system that provides them insurance/coverage/benefits based on their risk need whenever they need, without putting too much effort.

Artivatic is a pioneer in building a next-gen insurtech platform that enables insurance businesses to drive the easiness of business, increasing efficiency, improving transparency, enhancing TAT, improving customer experience, use of data-driven technologies /solutions.

Artivatic’s Product ASPIRE BUSINESS enables the same in a seamless way to change the way ‘how commercial /business insurance is bought/renew /personalized /make payment /manage and buy based on risk assessment as per need.

 Some of its benefits are as follows:

  1. Full-stack API Based self-managed business insurance platform that allows creating accounts, buying policies digitally, connecting to 3rd parties, building risk, and more.

  2. Allows SME/Businesses to personalize insurance based on business insights, risk insights, location insights, etc.

  3. Helps Businesses to file claims, track, get settlements digitally. [No manual ore email-based process]

  4. Instant Underwriting with use of 3rd party, govt, financial and many more data

  5. Enables business to track their finances, alerts, employees, wellness, and more

  6. Allows businesses to manage multiple locations, warehouses, delivery centers, partners, clients, etc.

  7. Policy /Document Digital Vault for simplifying insurance

  8. Self-onboarding process for buying insurance.

Interested in DEMO, write to contact@artivatic.ai

Visit our website at Artivatic: www.artivatic.ai