SME insurance must be targeted

Dutch study confirms: SME Insurance offering needs to be targeted to specific segments.

In many countries, insurance carriers are struggling to successfully offer insurance to Small and Medium Sized Enterprises (SME’s). A research of the Dutch SME market, conducted by the Dutch Association of Insurance Carriers, has raised substantial input to improve insurance products, communication and services provided.

Over 500 small businesses have been interviewed to learn more about their insurance experience and expectations. Most small businesses have some form of Liability Insurance. Also, Property and Car Insurance are common, but only one-third of the owners have Income Protection Insurance. One in every five entrepreneurs has not considered building any retirement funds. The main objective of the research was to discover how insurance can contribute to the long term success of an enterprise. The research has found several important triggers to successful insurance sales, but concluded that the most important issues for success are:

• customize products per specific SME segment;

• avoid complexity in the application and related information;

• approach pro-actively in accordance with the life cycle of the individual enterprise.

The study has underscored the importance of client solutions tailored to a specific group, rather than products that serve the broadest market, make communication open and simple and create client intimacy in order to serve in a pro-active way. (Source: Verbond van Verzekeraars)

Insurance carriers selling insurance to the SME market should consider an Affinity approach. This cannot only target specific markets, but provide the powerful communication strength of the Affinity sponsor. Bengrip is specialized in creating successful programs to the SME market, both through retailers or through dedicated business associations.