Small and medium-sized enterprises (SMEs) make a major contribution to the economy. Within the OECD, they account for 50 to 60 percent of total economic output. Therefore, they represent a very attractive market for insurers. A new study which surveyed more than 2,000 representatives of such companies in 14 different countries found that there is a high demand for access to online insurance.
- High growth for online insurance is very likely
One of the key findings of the study is that only 24 percent of SMEs presently handle their insurances online. However, the potential demand is much higher, because 48 percent of respondents said they would rather conduct their insurance business online. For insurers, developing their online offers represents a great opportunity for further growth.
- Many SMEs are not sufficiently protected
In addition, the survey showed that many SMEs have insufficient insurance cover. For example, only 16 percent had cyber insurance, although another 48 percent of those surveyed said it would be useful for their business. This also creates significant potential growth for insurers.
- Private insurance is a pioneer for commercial insurance
The study also shows that, especially in smaller companies, those charged with insurance responsibilities want to arrange their insurance in the same way they do as private individuals. Of those respondents who completed their own private insurance online, 70 percent said they would prefer to use the same methods for arranging their business policies.
- Many new companies are digital natives
Digital methods now play an important role, and especially in newly founded companies. In these contexts, the people in charge prefer to search online for insurance. So insurance companies who would like to win these businesses as customers should therefore offer appropriate digital channels as a matter of course.
- SMEs want to complete all tasks online
Smaller businesses do not just want to get their insurance online. In addition, they also want to complete a whole range of related tasks over the Internet – for example, submitting a claim or advising of a policy change. Insurers should therefore also look to digitise these kind of services.
- Customers also expect personal advice online
SMEs always expect personal advice – and that includes online customers. Insurers should therefore develop an intelligent strategy to connect their different channels, so that customers will always receive the necessary support.
- Small businesses want to bring digital services together
Another result of the study shows that SMEs would like to purchase different offers from a single source – for example: legal protection, accounting and banking. And 46 percent of respondents said they would also seek legal protection from their insurance company. Therefore, providers should develop strategies to make their product range as diverse as possible.
Conclusion: More and more SMEs want to take out insurance online
The study shows that small and medium-sized enterprises in particular are very interested in purchasing insurance products online. One reason for this might be that they need extensive guidance to enable them to arrange suitable insurance. However, the premium packages which include such services are all tailored to larger businesses and thus too expensive for SMEs. Therefore, SMEs have to hope for a good quality consultation, but without additional costs.
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This article was first publishes on LinkedIn.