At Consumer Intelligence, we're dedicated to uncovering growth opportunities for insurers by identifying underserved and dynamic markets. Our recent analysis of small and medium-sized enterprise (SME) owners reveals a sector brimming with potential, offering insurers significant scope to innovate, disrupt, and drive profitability.
Why the SME Market Matters
WSME owners represent a critical yet frequently underserved customer group, integral to the UK's economy. Traditional insurers often prioritise larger corporate clients, leaving SME owners with unmet needs. This creates an exciting landscape for insurers who are ready to innovate and deliver more personalised, competitive solutions
Insight-Driven Opportunities in the SME Insurance Market
Our research highlights several compelling reasons insurers should invest in understanding and serving SME owners:
High Engagement and Willingness to Switch
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- Over 80% of SME owners actively shop around at renewal, indicating a highly competitive market and significant opportunities for insurers to attract new customers.
- More than half (52%) of SME owners switched providers during their last renewal, underscoring the openness of this group to new and improved offerings.
Diverse Channel Preferences
- SME owners use multiple channels—online platforms, brokers, and mobile apps, to manage their insurance. Insurers who can optimise and innovate across these channels will significantly enhance their market presence.
Demand for Higher Service Standards
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- While a majority (83%) of SME owners report satisfaction with their current insurers, a notable segment remains neutral or dissatisfied. This presents insurers with the opportunity to differentiate through superior customer experience.
Aligning Opportunities with Consumer Duty
The FCA's Consumer Duty emphasises delivering fair value and ensuring positive customer outcomes—principles which align closely with the opportunities we've identified:
Insurers can differentiate by offering tailored pricing structures that reflect genuine customer value, meeting SME owners’ high expectations and ensuring regulatory compliance.
Enhanced Digital Experiences
Investing in seamless, intuitive digital solutions caters directly to SME owners' expectations for convenience and ease, delivering outcomes consistent with Consumer Duty requirements.
Personalised Retention Approaches
Insurers can build stronger, longer-lasting relationships through customised renewal processes and targeted loyalty incentives, aligning perfectly with the FCA’s focus on customer satisfaction and retention.
Proactive and Responsive Service
Addressing service gaps proactively ensures insurers comply with Consumer Duty and substantially improves customer satisfaction and loyalty.
At Consumer Intelligence, we are excited to support insurers in unlocking the vast potential of the SME market. By focusing on these underserved customers and aligning strategies with regulatory expectations, insurers can achieve significant growth, profitability, and customer loyalty in a sector ripe for innovation.
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