Analyzing new insurance needs of SMBs and identifying initiatives to be taken
The pandemic has had a catastrophic effect on the small and medium business (SMB) segment with a huge number of firms closing down. As SMBs contribute substantially to property and casualty (P&C) commercial insurance across both active policies and claims submitted, the segment too has been adversely impacted.
To cut costs and survive the crisis, SMBs are re-evaluating their insurance policies indicating a change in the insurance needs of SMBs. Firms are looking for price flexibility, transparency, suitability, and value from insurance products with business and technology implications across the P&C commercial insurance value chain. To meet the changed insurance needs of SMBs, insurers must ramp up the adoption of digital technologies in insurance. To accomplish this, insurers must:
- Fast track digitalization in sales, distribution, and claims
- Kickstart transformation in product management
- Slow ongoing transformation initiatives in some functions