Businesses with Less than 10 Employees representing 80% of the Small Business Market are Significantly Underserved by Insurers – Majesco Research Finds
The gap creates a great opportunity for new, innovative business models, products and processes that challenge the insurance status quo
“The research reveals that SMBs find insurance complex and confusing relative to the other products and services they need to run their businesses. Current insurers are not meeting needs or expectations such as the ability to create customized products available from a range of options rather than lowest price and through multiple channels, reflecting the increasing demand for personalization across the customer journey,” commented
The research assessed SMB owners’ and decision-makers’ perceptions across ten common industries they do business with regularly, including P&C and life insurance and employee benefits, finding that all three are among the worst in terms of “easy to do business with” from researching to buying and servicing insurance. Loyalty is significantly lower for small and medium sized businesses compared to other industries, highlighting the commodity view of insurance and a new bar for loyalty. This sets a trajectory of change for SMB insurance similar to personal insurance, but at a faster pace that will likely accelerate market share shifts.
In addition, the two larger SMB segments are more progressive than the smallest segment in leveraging new technologies like smart devices in offices/buildings or alternative payment methods like ApplePay, but we should expect participation to expand among all segments as these technologies mature. Roboadvisors offer a unique bridge between personal and technology capabilities to a market that is diverse in needs and expectations, and the likelihood of the two largest SMB segments to use this technology reaches nearly 50%.
The new thought leadership paper, The Rise of the Small-Medium Business Insurance Customer: Shifting Views and Expectations…Is Your Business Ready for Them?, is available on the
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Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in P&C,
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