Work The Problem – Chapter 2: Commercial Insurance And The Small Business Problem
The new digitally based economy not only changed the game on how consumers interact with businesses, it changed business itself. E-commerce platforms, social media, and mobile technology, to name just a few, provided resources to facilitate independence and with that, came a rise of microbusinesses, freelancers, and solopreneurs.
In a country where small business is generally defined as employing less than 500 employees, let’s paint a more detailed picture:
- 98% of the U.S. economy is made up of businesses with less than 20 employees
- 87% of these businesses have no employees at all
- 27% of the United States working age population, approximately 54M independent workers, have participated in the gig and sharing economy
Very clearly, microbusinesses, freelancers and solopreneurs dominate the economy. However, as these businesses are very aware, few insurance carriers specifically cater to their needs. This is evidenced by the estimated 50% of small business insurance customers open to switching insurance providers each renewal period. And the main underlying issue prompting microbusinesses, freelancers, and solopreneurs to switch insurance providers is…price. This failure in pricing is a failure to adequately tailor insurance coverings to these types of businesses.
If you ask us, 50% of customers shopping around isn’t a resounding endorsement of the industry. So, ta-da! We found another problem to work; how to connect microbusinesses, freelancers, and solopreneurs to adequately priced insurance products.
Our solution – solely partner with insurance providers that specialize in microbusinesses, freelancers, and solopreneurs, with products designed just for them, priced just for them.
Then, algorithmically match the microbusinesses, freelancers, and solopreneurs, based on numerous factors, via our wonderful chatbot, to the tailored insurance coverages.
And done! You never have to wonder again if your insurance provider understands your business.
Read the first post in this series, Work The Problem Chapter 1: Commercial Insurance And The Digital Sales Problem.