We all know that, due to their limited resources and low resilience, SMEs (Small and medium-sized enterprises) are especially vulnerable to the effects of economic crises. Since the pandemic, many SMEs faced serious challenges to their survival, and many others have been forced to close their doors.
However, after Covid, there is a new opportunity for insurance providers to enter the SMEs market. Today, we explore why insurers should pay attention to SMEs:
1. Small enterprises but big market
SMEs play an important role in most global economies. In fact, they represent 99% of all businesses in the EU. Whether they are traditional businesses or startups, they need coverage sooner or later.
2. Unsatisfied customers are a sales opportunity
90% of unhappy customers don’t complain, they just leave. According to McKinsey only about one-third of SMEs in Germany said they were completely satisfied with their current insurance coverage. What does it mean? There is a real opportunity to enter SMEs market for innovative insurers who have a customer-centric approach.
3. Global demand for insurance is increasing
This recent survey by Deloitte shows that demand for insurance coverage is increasing globally, particularly among SMEs that historically have not been protected and those that already have coverage but want to expand their protection.
4. New business models, new risks
When we talk about insurance for small and medium-sized businesses, a small store or bar probably comes to our minds. However, every day SMEs are more innovative and face new risks such as cyber-attacks or reputation sual crises due to bad opinions on the internet. In fact, small businesses are more likely to suffer a cyberattack than big companies.
5. New high-tech solutions
New players such as Insurtechs are offering innovative solutions to insurers. For example, Open Data, which allows Insurers to automate data collection processes and therefore, optimize them and customize their services for SMEs.
Smaller businesses need more customized insurance products than big corporations. With the right strategy and technology, insurers can offer SMEs an attractive service that better meets their needs, which will result in loyal customers. In this sense, insurers should consider using Open Data if they want to be more efficient and make better decisions.
Every business has its own different needs, and insurers need to be flexible is they want to work with SMEs. Thanks to new techs, insurers can customize their products for any client SMEs. And it is possible to do it with our platform.
In brief, Open Data is a key player for SME insurance, and you can discover more by contacting us at email@example.com