Innovation and regulation, along with InsurTech and technologies like Cloud, AI, machine learning, and more, were featured at the recent NAIC Insurance Summit in Kansas City, KS, which was attended by over 1,200 state regulators and insurance companies.
A popular 1970s BBC sitcom, the Good Life, was based on the idea of self-sufficiency, where a suburban couple, the eponymous Tom and Barbara Good, decided to become completely independent by turning their garden into an allotment and living off whatever they could produce on it. The concept was slightly fantastical, as one would expect in a good sitcom, but self-sufficiency is back in a big way – promoted by governments who are facing ever increasing bills for stepping into the breach for individuals and are looking for ways to make their citizens less dependent upon the ever-shrinking taxpayer base.
A complete understanding of SMB opinions and trends can help prioritize digital efforts and grasp how vital it is to meet SMBs need for a quick, easy, and thorough insurance purchase process.
As Millenials and Gen Z become the largest segment of owners and influencers in the SMB market space, insurers must adapt to their demands and needs – including new digital capabilities, new products and new channe;s of engagement.
Majesco released a new primary research report, Building the Business Model for the Next Generation of Small-Medium Business Leaders, based on its third annual survey of small-medium business owners (SMBs) who make or influence insurance purchase decisions for their companies. The report highlights behavioral shifts and expectations of the SMB market that demand insurers to rethink their business to retain their customer base and capture growth opportunities emerging for a growing and underserved market of over 30 million SMBs, which comprise over 99% of all businesses in the U.S.
The rapid multiplication of SMB companies, that all need insurance products and services, is a trend that is going on within nearly every industry. Tech companies are on the rise. Services companies are on the rise. Despite historically low unemployment, new companies are managing to find enough talent to launch and grow. According to the U.S. Small Business Administration, the SMB market size is massive and continuing to grow — 30.2 million businesses representing 99.9% of the market.
In an industry filled with InsurTech startups, new MGAs and a host of ancillary organizations, insurance industry execs should be interested in the success of small-to-medium businesses (SMB). We know their power to produce great ideas, launch new businesses and operate with agility.
Over the last few months, many of the largest tech platforms have been wrestling with the problems of safe storage and ethical usage of the vast amounts of personal data they hold. Amid rising public concern about the sheer scale of the information these platforms have gathered about us, the tech giants have struggled to prove that they are worthy custodians of such levels of information about us as individuals – how we live our lives, our preferences and goals, and what we think about the big issues of the day.
As catastrophic events seem to be on the rise, methods for dealing with catastrophic risk are also on the rise. Insurers now have the ability to know more than ever about their overall level of risk, meaning that they should also be able to mitigate those risks by encouraging preparation among their insured individuals, families and businesses. Can insurers keep the hail and hurricanes from doing major damage? Just how much can be saved through preventive communication? With GPS, property data and digital channels for two-way communication, insurers should be lowering risk and losses in dramatic ways.