Let’s get straight to the point: Buying insurance is frustrating. Even with all of the technological advancements we’ve made in the past 20 years, the process of getting and managing insurance hasn’t gotten much easier, especially for small to medium-size businesses who don’t get the same service as their larger counterparts.
However, as some industry players make progress on underwriting, pricing and distribution and venture capitalists start backing startups, who are ready to transform and disrupt the insurance industry, we’re starting to see a shift in the way businesses are choosing to buy and manage their insurance.
Limited education. While the Internet has been an incredibly useful tool for finding information on the product or service we are considering, this has not translated to the insurance industry.
Prolonged quoting periods. Right now, in order to get insurance, business owners must either get in touch with a broker or the insurance provider specifically. Even the process of getting a quote, or pricing information for insurance, can take two to four weeks, and none of it exists online.
Hard-to-decipher policies. Online management of business insurance policies is something that has been slow to adapt to the 21st century. After a company buys an insurance policy, they are sent a 200-plus-page PDF, promising that their business is covered should anything bad happen.
Business owners are busy. Business owners have a million and one things to worry about outside of their insurance policies. After jumping through hoops with an insurer or broker to get a quote, in addition to the lack of education and transparency in pricing online, you can almost guarantee that these business owners will buy the first policy they’re offered. It’s not that business owners don’t see the importance of insurance; they simply don’t have the time to really deal with it.
Startups and venture capitalists taking on this challenge means the writing’s on the wall for the insurance industry: Innovate or get left behind.
In today’s world, the customer is all about finding something faster and easier, and if that option exists, trust us, they’ll take it.
If there is one market segment that is ripe for a disruptive process it is SMB’s for whom technology is the lifeblood of their business. For instance dronepreneurs, UAV manufacturers and software developers.