Accenture did a survey of small businesses and found small commercial insurers aren’t giving small businesses what they want and need most. That’s a simple and easy purchase experience.
The survey — titled Winning the Hearts and Minds of Small Business Insurance Buyers — concludes that small business owners are frustrated. “Small businesses are extremely frustrated with the process of commercial insurance, whether they purchase directly or through an agent. Many report that they do not trust the sales process or fear that they are inadequately covered by the policies they eventually buy,” the report noted.
As a result, many believe they must find additional input from other sources to make an insurance decision.
The report says businesses surveyed used these words to describe their first time experiences:
Overwhelming, confusing, not fun
Most aren’t clear about why insurers collect data, or about the language of insurance. Many were flat out confused about how much insurance they really need and what that insurance does.
They want a quoting process that is easier and faster than it is now.
Some business owners want to start the purchase process online. However, they are quickly overwhelmed by the complexity of insurance and can’t find what they need or why. Thus, instead of being able to get the job done quickly, they need more time and have to consult with other — often non-insurance — entities.
The report notes small business owners are put off by sales pitches. This applies to commercial insurance and with personal lines insurance as well. Those pitches leave them jaded and cynical and desperate for unbiased advice.
That’s advice they will get — and need to get — before they make an insurance purchase so they view it as slowing down the purchase process.
Another complaint? Commercial policies aren’t flexible. They want policies that will adjust to their needs over time and information that is streamlined to them. Small business wants artificial intelligence to let them know how to update policies and improve coverage.
Mostly, these business owners want clear, non-jargon language.
Accenture’s report makes it clear that this is very important for the future of the business. In the small insurance market no carrier has more than 4% of the market share. Plus, by 2020 a whopping 60% of the nation’s small businesses will be owned by Millennials and those from Generation X.
They prefer — the report points out — “digital purchases and self-service to face-to-face.”
That means a revamp of how business is done is in order. “Carriers that want to win need to leverage design thinking co-creation with customers, imagination, and experiential research capabilities to create and rapidly refine their target segments, channels and touch points,” Accenture’s study said.
Source link: Carrier Management