Scouting for Growth Tim Lovett & Jeff Shi: Solving for small commercials
It’s not easy for small and medium-size businesses to find the right protection, even though many more small business opportunities have emerged since the pandemic.
Today, Sabine taps into the knowledge of two industry veterans: Jeff Shi of InsurTech Groups and Tim Lovett of The Hartford, and asks them to understand the current situation with small commercials in the US market.
KEY TAKEAWAYS
- The size of the small and medium-sized enterprise (SME) market varies greatly depending on the region and the industry being considered. Globally, SMEs account for a significant portion of the economy, employing a large percentage of the workforce and generating substantial economic activity. Estimates suggest that SMEs make up over 90% of businesses in many countries and are often considered the backbone of the economy. However, due to their diversity and dispersed nature, it can be challenging to estimate the exact size of the SME market.
- Insurers may have pulled away from small commercial coverage in the past two years for various reasons, including changes in regulations, declining profitability, or shifting business strategies, as well as increased competition, higher risk, new regulations in data and ethics, and shifting business strategies.
- The small commercial lines market can present several challenges for insurers, including: higher risk, increased competition, complexity of coverage, limited data availability, and pricing pressures. These challenges can make it difficult for insurers to operate effectively in the small commercial lines market, resulting in some companies pulling back from this market segment. However, despite these challenges, there is still significant demand for insurance coverage among small businesses, and many insurers are finding ways to overcome these challenges and offer competitive products.
- The products, services, and business opportunities that insurers evaluate today within the small commercial insurance market include technology-enabled solutions, specialized coverage, customized products, bundled products, alternative distribution channels, and risk management services. These products, services, and business opportunities aim to improve the customer experience, increase profitability, and differentiate from the competition in the small commercial insurance market. However, insurers must carefully evaluate each opportunity's viability and potential, as success will depend on factors such as market demand, competition, and the overall regulatory environment.
BEST MOMENTS
‘Small businesses often face a higher level of risk than larger businesses, and insurers may have decided that the risk associated with insuring small businesses was too high.'
‘Small businesses often face a higher level of risk than larger businesses, making it more difficult for insurers to assess and price risk accurately.’
‘Small business owners are often price-sensitive, and insurers may face pressure to offer competitive pricing, which can impact profitability.’
‘Insurers are exploring alternative distribution channels, such as insurtech start-ups, to reach small businesses and offer more convenient and accessible insurance solutions.’
ABOUT THE GUEST
Jeff Shi is the founder of InsurTech Groups, where he connects consumers with top industry partners, using advanced processes leveraging innovative technology. Jeff helps consumers to better understand their policies in an effort to meet each of their unique needs.
Website: https://www.insurtechgroups.com/
Tim Lovett has been at The Hartford insurance group for nearly six years. Tim helps small and medium size companies make better choices. He has a background in claims management and distribution, both of which allows him to educate and assist agents in growing their small commercial portfolio.
Website: https://ir.thehartford.com/
ABOUT THE HOST
Sabine is a corporate strategist turned entrepreneur. She is the CEO and Managing Partner of Alchemy Crew, a venture lab that accelerates the curation, validation, & commercialization of new tech business models. Sabine is renowned within the insurance sector for building some of the most renowned tech startup accelerators around the world working with over 30 corporate insurers & accelerating over 100 startup ventures. Sabine is the co-editor of the bestseller The INSURTECH Book, a top 50 Women in Tech, a FinTech and InsurTech Influencer, an investor & multi-award winner.
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