For some time, the practices of how personal lines insurances are sold and marketed have extended across SME commercial insurance. Packaged policies, sold online becoming more the norm. As the insurance sector hits a new era of digital-first selling, one can only see this crossover increasing more dramatically.
On the surface, this seems a great idea for insurance providers as at the general level of premiums involved and margins, anything that automates the process, removing unnecessary touchpoints must be a good thing. However, that said, we have a small red flag of concern.
Whilst there is a generic element across how most SMEs operate, unlike homeowners they are not homogenic. By their nature, many have some form of specialism that drives the reason they operate their business and these need to be recognised. It will affect elements of their property risks, but more so in areas such as business interruption and with most being tech-reliant to one degree or another, intangible risks such as cyber liabilities and perhaps more specifically dealing with the effects of a breach response; getting back up and running and any immediate reputational issues.
We recognise this at Quadra and are therefore evolving how we deal with SME claims. This is both from a technical case handling level and the tools we use to deal with them more efficiently. For this reason, we will be sharing some exciting news soon about an investment we are making in an app that will help streamline our claims handling… watch this space for more updates.