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Small and Medium Businesses: Emerging Needs and Implications for Insurers

Prasad Thurlapati

Global Head, Guidewire Centre of Excellence, Banking, Financial Services, and Insurance, TCS

Rathika Thiruvengadam

Senior Consultant, Guidewire Centre of Excellence, Banking, Financial Services, and Insurance, TCS

Saravanakumar S

Domain Consultant, Guidewire Centre of Excellence, Banking, Financial Services, and Insurance, TCS

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