Insurers seeking to make new bets on growth and profitability can find fertile ground in the $100 billion small-business commercial insurance segment.
The segment is undersized: A 2018 survey of 30,000 small businesses from 16 different classes of businesses discovered that 44 percent of the businesses that had been operating for more than a year, had never had insurance.* Research also shows that the majority of small-business owners are not confident they are adequately insured and view proper coverage as more important than price.
There is a sense of urgency for insurers seeking growth to look toward the small-business sector. But timing is critical to capture the direct-to-consumer, small-commercial insurance market opportunity. Competition is already fierce, and legacy insurers that delay could regret inaction.
*Next Insurance, Jan. 23, 2018.