A.M. BestTV: Easier, Faster and Cheaper: Insurers Refocus on Small Businesses Coverage

OLDWICK, N.J.--()--This A.M.BestTV episode examines how commercial insurers are aggressively courting small businesses, but are torn concerning platforms and selling strategies. Click on http://www.ambest.com/v.asp?v=smallbusiness116 to view the entire program.

A recent Deloitte study showed that direct sales of business insurance have been slow to develop, though the market is primed for automated service.

“A lot of these businesses are being grouped into program segments ... they tend to get pretty standard off-the-shelf products, with pricing being pretty straight forward,” said Sam Friedman, insurance research leader, Deloitte Center for Financial Services. “These businesses for the most part are starting to resemble the personal lines buyers and for that reason this segment is primed for automation.”

John Lucker, principal, Deloitte Consulting LLP, global advanced analytics & modeling market leader and leader, Deloitte Analytics, addressed the hurdles facing the segment in selling online.

“Ultimately there are three main features as to what customers want, they want the business to be easy to originate and process, to be done quickly and finally, to be cheap,” said Lucker.

Additionally, the Deloitte study pointed out that the keys to moving this business forward are listening to the voices of the small business consumers, resolving their conflicting needs and resolving what is most important to them and their insurance relationships.

Recent episodes of A.M.BestTV include:

  • Carriers See Coverage Opportunity in Renters’ Insurance: Renters across the United States remain underinsured, although recent trends are leading carriers to be more aggressive in this market: http://www.ambest.com/v.asp?v=renters116.
  • 2016 A Pivotal Year for Regulation, Say Insurance Industry Leaders: At the Property/Casualty Insurance Joint Industry Forum, held in New York, NY, industry leaders discussed Solvency II, capital standards, equivalency, reinsurance-covered agreements and other regulatory issues that they said will be the dominant topics in 2016: http://www.ambest.com/v.asp?v=pcjointforum2116.
  • U.S. Property/Casualty Insurance Leaders Positive on 2016, Barring Major Catastrophes: At the Property/Casualty Insurance Joint Industry Forum, insurance leaders said they expect continued growth in the industry. However, they warned that the industry has been bolstered by unusually low catastrophe losses in recent years: http://www.ambest.com/v.asp?v=pcjointforum116.
  • A Review of Insurers’ Use of Surplus Notes and Trust Preferred Collateralized Debt Obligations: A.M. Best Managing Director and Global Head of Insurance-Linked Securities Emmanuel Modu addresses the topics of surplus notes and insurance trust preferred collateralized debt obligations that were discussed at a recent webinar: http://www.ambest.com/v.asp?v=cdo116.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

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Contacts

A.M. Best
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com