The small business insurance market is a potential gold mine for producers. So why aren't they capitalizing on it? And how can they?
A business is considered small if it has 50 or fewer employees. They also represent a significant untapped source of revenue. Industry estimates show that small businesses represent approximately $95 billion in potential premium.
So what’s stopping producers from going after those accounts? Time and limited human resources. The sales process is lengthy and costly. From the initial call, to building a relationship and selling the account can take weeks or even months depending on the client. And once the clients come aboard, the producer still must devote significant time and effort toward ensuring the client stays with them year after year.
Ideally, producers want to go after every business account. But, the reality is many just don’t have time to provide insurance for small businesses with the current staff and resources. As a result, some business owners have been left on the wayside.
According to Property & Casualty 360, SeaPass Solutions conducted a survey of 125 small-business owners and asked them how effectively the insurance needs of the group were being served. The issues small business owners discussed weren't the actual products themselves.
Small business owners said they wanted agents to be more proactive, intuitive, and to anticipate their needs as businesses evolve. They wanted price transparency and policies worded in accessible language they could easily understand. They also wanted the future flexibility, so their insurance protection can grow with the company as it expands, as new risks and liabilities emerge, and as business owners encounter different claims.
Technological advances can help producer better meet needs of clients and potential leads. Data segmentation can help target customers by policy issue dates, geographic locations, and demographic data. Administrative tasks can be cut down with automation technology. Email marketing that follow through with customers from the moment they fill out a quote form, to when they become clients can help them stay informed, educated on insurance issues, and connected to their agency. Overall, it is the basic tenets of customer service that have the greatest appeal to small business owners. By utilizing new technology platforms, it can help time strapped producers cut administrative tasks and focus on the customer.
We invite you to take a look at each of our programs, such as Professional Liability for Insurance Agents/Brokers, Errors & Omissions. Directors & Officers, as well as EPLI. Discover more about how we can help meet your clients’ needs. Please give us a call at (855) 403-5982, email us, or complete the above form, and one of our staff professional liability specialists will contact you.