Is tech making small business accounts more attractive?
“It can be a challenge. A lot of carriers won’t write new business as they have a minimum premium [requirement] or payroll threshold to even [offer] a quote,” Hannah Sullivan (pictured right), head of growth at SolePro explained. “That places [SMEs] in the assigned risk pool which no-one wants to be in.”
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The more agents touch a smaller account, the less money they make, but with the right technology that problem is alleviated.
“Technology is allowing agents to service [SMEs] through a platform where you can quote multiple carriers in one place,” Jade Sullivan (pictured left), head of innovation at SolePro added. “The ability to have instant quotes takes some of the work off their plates and gives agents the opportunity to build relationships with clients.”
New or smaller businesses are not always insurance savvy and tend to have lots of questions that agents may not have the time to answer. This is where digital solutions can swoop in and save the day.
SolePro has developed a retail agency POGO, to help SME clients understand the basics about what to look for in insurance coverage, and the agency offers an extra set of eyes, if needed, to make sure the right coverage is in place.
“We’re creating more resources online to answer specific questions,” Jade Sullivan mentioned. “We’re hoping to help smaller accounts throughout their whole journey, from research to quoting.”
“There’s a whole DIY movement; many accounts are researching their options online when it comes to insurance,” said Hannah Sullivan. “There are gaps when it comes to workers’ comp [and] independent agents go to multiple carriers to get all the necessary coverage which makes the process much harder.”
Insurtechs like SolePro are enabling more carrier quoting accessibility for small businesses on one platform, while also filling the gaps when it comes to workers’ comp protection.
“The main thing is that insurtechs are aggregating all that information and coding it,” Jade Sullivan added.
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Carriers are now looking to get on as many insurtech platforms as possible and building out their own APIs for easy integration. Hannah Sullivan noted that the carriers SolePro works with are making their APIs more robust, keeping distribution top of mind.
“There are some new carriers emerging that are tech-forward and others who are bound to old systems,” Hannah Sullivan continued. “Even if they can create an API, it doesn’t necessarily mean they can change other aspects within their processes, which are obstacles for insurtech platforms.”