In the US and Canada, 68% said they would be interested in a product that covers against liability incurred from employees and consumers catching a disease in their place of business. This level of interest is not surprising. Insurers must recognize the likelihood of future pandemic-like scenarios and begin incorporating such coverages to take advantage of the demand.
While these findings are no surprise in the wake of global economic turmoil, they represent a future growth opportunity for insurers who can quickly and efficiently design, develop and launch such products. Their willingness to buy signals clear demand and small business owners are asking insurers to step in with new coverage. Again, the key will be to design affordable products and market them in a way that clearly demonstrates value.
Proactively connecting with small business owners and delivering the protection they need are the first steps in strengthening customer relationships and seizing long-term opportunities.
Driving growth with client-centric product innovation
So what sorts of products and services will small business owners be seeking? The priority is financial viability and protection against future shutdowns and revenue losses. Products that offer a clear value proposition, easily understood language about coverage and more closely link usage and cost will likely win market share, too. The same is true of products that are tailored to specific types of businesses, since the needs of restaurants, hair salons and small professional services firms vary considerably.
Tomorrow’s buyers will be looking for flexible protections and the ability to add and subtract specific coverages and features as they continuously refine their strategies and operations. To meet this new demand and differentiate themselves, insurers must reimagine their products starting with close alignment to the needs and preferences of small business owners.
With solutions that help businesses through vulnerable situations and provide value beyond downside risk protections, insurers can reposition themselves as true business partners and strengthen customer relationships over the long term.
The pandemic has been historically disruptive for all types of companies, but small businesses bore the brunt. Our survey results confirm the extent of the impact and how insurers can adapt moving forward. The business community has never needed the insurance industry to live its purpose of providing relevant, holistic protection more than it does now.
Developing leading solutions requires an integrated approach that applies innovation discipline to highly regulated products. It also requires the ability to leverage external ecosystems and collaborate with others outside of the industry. Finally, insurers need an adequate technology architecture and supporting platforms.
But everything relies on first identifying the customer and their unmet needs. EY Insurance can help you understand what our survey findings mean to your company’s product strategy and how you can use these insights to strengthen existing customer relationships and develop new ones.