What commercial clients want from insurance
While trust in the insurance industry grew during the past year, a quarter of business leaders are still uncertain about what coverages they need.
Since the onset of the pandemic, around half of commercial policyholders said their trust in insurance has increased, according to a survey by specialty insurance company Beazley. While trust grew, 44% of commercial clients said they don’t think their insurer understands their business.
Further, around half said their insurance company is meeting their business needs “very well,” while 19% of commercial policyholders polled said they have trouble finding insurance tailored for their sector or specialist business.
“While it is encouraging that trust in insurance has increased since the start of the pandemic, it is a concern that only about half of our survey’s respondents feel that the insurance industry is meeting their needs very well,” Lou Ann Layton, Beazley’s head of broker relations and marketing, said in a release. “No longer can the industry take a one-size-fits-all approach; instead, clients want a more nuanced, tailored and responsive service. To deliver what they want will require us to strengthen our relationships and improve communication with clients. Only by listening to them and demonstrating our expertise and insight into how they can better manage their specific, sector-based risks can we build our reputation as trusted risk partners delivering a valued service.”
What’s more, 25% admitted to being uncertain as to what types of coverage their business needs. With this in mind, it isn’t surprising that the most popular traits for an insurance partner are a deep understanding of risk by industry sector and business size, having specialty risk advisors as part of the policy and offering comprehensive, straightforward coverage.
“Digital technology is more and more entrenched in insurance operations and distribution, unleashing huge potential for service improvement and efficiency. As insurance providers, how we harness claims and risk insight data will be critical in improving the services and solutions we develop for clients,” Bethany Greenwood, head of cyber & executive risk and interim co-chief underwriting officer at Beazley, said in a release. “There will always be a place for cost-effective standard coverage; however, where our industry will add value in the future will be through a service based on a combination of technological and human factors.”
As it stands today, the top five buying factors for commercial insurance, according to Beazley’s survey, are:
- A policy designed for the type of business.
- A long-term insurer partnership.
- The cost of insurance.
- Fast, responsive claims service.
- Ease of understanding cover.
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