The insurance industry has long struggled to effectively serve Small-Medium Business (SMB). The cumbersome and inefficient process of buying business insurance doesn’t suit the needs of SMB’s, nor does it suit the expense structure of insurers and brokers. Consequently, affordable and convenient insurance options for SMB’s are limited.
When reviewing the options for SMB’s, it seems most insurers are focused on coverage rather than convenience. It’s a natural instinct – coverage is what they do. But, do most customers really care if they have $150,000 of Valuable Papers coverage instead of $100,000? Coverage is not necessarily customer-centric.
Although there are a number of options now for SMB’s to buy insurance online, it’s not actually that much easier. There are still lengthy applications to complete, small underwriting “boxes” that delay quotes, complicated proposals to review, wait-times for policy documents and archaic payment options. The same cumbersome buying process has simply been moved to the digital world. Almost everything an SMB needs to operate can be purchased instantly. If a small contractor needs equipment for a job, the owner can simply drop by Home Depot on the way to the office. Likewise, if a consultant needs data to complete an analysis, a few minutes researching on Google will find numerous sources that sell data subscriptions. Time for lunch? Delivery can be arranged with practically every restaurant in the city.
So why can’t insurance be purchased the same way– instantly, as needed, and without any hassle?
On-demand insurance will do just that! In fact, the first product from Slice for SMB’s will be cyber insurance. It’s not just a policy, it’s a program. Even with insurance, claims cost money in terms of deductibles and lost time. The cyber product rolls together insurance and loss prevention to minimize “Total Cost of Risk.” The result: fewer claims, fewer deductibles, less time spent on insurance and lower premiums for SMB’s.
Key things to look for with “On-Demand” Insurance:
- A digital policy that can be purchased easily and instantly from a web or smartphone app
- Submitting and being paid for claims digitally through the same app
- You’re in control: buy it when you need it, keep it for as long you need it, and then cancel without penalty when you no longer need it
- The ability to reach underserved markets, such as SMB’s.
Here’s how easy it is to buy insurance through some very exciting innovations:
No Application Form
Here’s a secret: the application form can only benefit the insurer. It is not customer-friendly. Most of the information required on the form is either pointless or available from other sources. The purpose of the application is to get a signature to a warranty statement to use against the business at the time of a claim.
Subscription Service
Rather than being forced into an annual insurance policy with an inconvenient renewal cycle, SMB’s can subscribe to their required coverage month-to-month. No more renewal questionnaires and no more premium finance contracts and the interest fees that go with them. Plus, at any time, the SMB can buy additional coverage on a temporary basis to address specific needs. Then, cancel at any time without penalty.
A Simple Policy
Insurance policies are short and written in plain English. Confusing insurance terms and legalese are eliminated. Policies are easy to read, easy to understand and easy to buy.
On-Demand insurance will not only make getting insurance easier for SMBs, it will have a huge impact on the industry as a whole.
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