In case you missed it ...
We offer a digest of some of the most important insurance stories that passed our desk this week. Check them out!
Small Business Opportunities
We all know that the small business market is huge - it represents about a third of the commercial lines market,according to McKinsey & Co. And today, we find ourselves in a period that is showing robust growth for new business startups - averaging about 400,000 a year. In Insurance Journal, Andrea Wells has a great article that talks about how to succeed in today’s small business insurance market.
Among other things, she points to opportunities in several under-served markets:
All of this small business activity presents opportunities for insurance agents and carriers because there is an insurance gap. Many small businesses have been caught without flood or business interruption insurance and many more report that they are not buying cyber insurance. But the gap is much bigger than that. The McKinsey report found that almost 40 percent of U.S. sole proprietorships don’t carry any commercial coverage. Digital small business insurer Next Insurance surveyed 30,000 small businesses and learned that 44 percent that have been in business for at least a year have never had insurance.
She also discusses five strategies for success in small commercial lines that were unearthed in discussions with agents and carriers: rearrange and redefine; utilize service centers; specialize; upgrade technology and stay committed.
Lemonade 2.0, take 2
Recently, we talked about the Lemonade 2.0 open source policy announcement and our post included a critique. Following up,
Tom Super, Director of J.D. Power’s P&C Insurance Practice, writes about how one of the premises of the initiative - improving the transparency of policies by making them easier for consumers to understand, is right on target with consumer attitudes:
"According to our J.D. Power 2018 Insurance Shopping Study, the number one factor impacting customer satisfaction is understandability of coverages. Just 67 percent of consumers felt that their carrier had done a good job in ensuring they completely understood their policy coverages. Further, those companies that were able to meet customer expectations in this regard, were able to achieve a 9 percent lift in their overall customer satisfaction scores.
Lemonade’s Policy 2.0 initiative addresses this core issue while reinforcing three broader trends we are seeing across the property and casualty industry."
Check it out: J.D. Power: Why Lemonade’s Policy 2.0 Matters. We think agents have a real opportunity to serve as the educators and to help address customer experience issues and preferences.
Email marketing best practice checklist
SmartBrief is a leading digital media publisher of targeted business news and information by industry , and much of their news is distributed via email. As such, they've learned a lot about what makes email marketing successful and they share much of this in The ultimate B2B email marketing checklist.
They answer a question we hear often: Is email still an effective channel?
When it comes to digital marketing, email remains king. According to WordStream, 59% of B2B marketers say email is their most effective channel for revenue generation, and 93% of B2B marketers surveyed by the Content Marketing Institute anticipate using email as their primary vehicle for content and information distribution this year. A Campaign Monitor study also found that every $1 spent on email marketing makes $44 in return.
Their practical checklist of tips for making your email marketing campaigns a success is worth a read.