For many businesses, dealing with insurance companies is a real pain in the neck and both managers or entrepreneurs can feel as lost in translation as if they were watching a foreign movie without subtitles. Actually, 58% of SMEs rather be uninsured against their top 3 perceived risks than deal with them. And there are good reasons for that.
But, what is wrong with insurance today? The answer may seem very dramatic but, yet, is very real: almost everything.
The purchase process is highly complex, manual, technical and bureaucratic. There are no digital solutions (paperless offering) and the information is too technical. Considering this, buying is not only confusing and time-consuming, it is a real pain felt by either small entrepreneurs or high growth startups.
The relationship between insurance companies and his customers is a troubled one right off the track and persists on the wrong foot since day one. In fact, insurance management is complex, time-consuming and frustrating. Requires back and forth emails, hand-filled forms, monthly updates, policy inclusions, exclusions, employee management and tracking, capital adequacy, mandatory insurance leading to large fees, complex covers and risk details and a fragmented workflow — from the business manager directly to the employees, back to the business manager, to broker and then to carrier and finally back to business manager and employee. Therefore, insurance management is a key frustration and part of the reason the industry NPS (Net Promoter Score) is the second-worst across all markets. On top of all this: it lacks transparency, namely when dealing with claims.
But this shouldn’t be the reality when we are talking about one of the largest sectors in the world, worth approximately €5 Trillion at the end of 2018.
The sector of SMEs is the most underserved segment of companies in terms of insurance (and it represents nearly €1 Trillion, being almost ⅓ of the corporate segment). The SMEs are frequently served by local, offline-based brokers and neglected by insurance companies, which still perceive them as too fragmented. So, they neither receive the attention of the large broker’s groups, which look for larger deals with higher property and headcount values — nor by small brokers, which are more suited for individuals and traditional small businesses, lacking the supporting systems, tools and negotiation channels to measure risk and customize the offering. SMEs are therefore a no-man’s land experiencing major hurdles.
The ecosystem has been changing as well. Today there’s a new generation of businesses. The fast pace and digital companies demand new experiences, new fully digital products and not adaptations, and the traditional carriers are not prepared for them. Only the newcomers can make these new digital products because they are not attached to traditional distributors. Plus: businesses want a better experience and traditional carriers aren’t involved.
The insurance sector needed a fresh breeze, a game-changing solution. And here is where we jump in. A digital platform for the digital generation presents itself to the market. Simple to understand, quick to buy and easy to manage, allowing you to take care of your business and employees without losing focus and money. The all-in-one solution for the leaders of the new economy: Coverflex. Find more and sign in at www.coverflex.com
