- Smaller companies in Germany underinsured and with considerable sales potential for insurers
- Personalized advice and digital interaction options are particularly relevant for smaller companies
- Relevant value-added services as an opportunity to position yourself as a trustworthy partner
The InsurTech Hub Munich (ITHM) and the strategy consultancy Roland Berger have jointly published the NXT:Commercial study, which examines the needs and challenges of the insurance market for smaller companies (10 to 49 employees and up to EUR 10 million annual turnover) in Germany. The study, based on surveys of 150 managing directors of smaller companies and interviews with managers from more than ten insurance companies, examines two key questions: To what extent are the basic needs of smaller companies being met by insurers and can insurers establish themselves as long-term partners for them through value-added services?
Underinsurance offers growth opportunities
Small and medium-sized enterprises account for around 99% of the approximately 3.4 million companies in Germany and represent an important business segment for insurers. With a focus on the smaller companies segment, the study identifies widespread underinsurance in this SME segment due to the high heterogeneity and varying risk profiles of the companies. "This offers insurers considerable growth potential through specialized offers and needs-based advice," explains Claudia Fell, Partner and Head of Insurance DACH at Roland Berger. "Smaller companies want a tailor-made and easy-to-understand product offering that provides comprehensive cover against risks while offering a fair price-performance ratio. Insurers that offer flexible product portfolios can clearly set themselves apart from the competition."
Personal advice remains a key factor
A key finding of the study: despite increasing digitalization, smaller companies still prefer personal advice from experts. "Trust and short distances to a knowledgeable contact person are crucial," emphasizes Fell. At the same time, companies want digital communication channels with self-service functions that also allow them to view contract information, make adjustments and submit reports. "Insurers should therefore provide their sales teams with targeted training in industry-specific topics in order to optimally serve individual customer needs and expand customer portals for smaller companies."
Value-added services: Proximity to the core business is crucial
The study also shows that value-added services are generally desired by smaller companies. However, these are often not used intensively. The study concludes that insurers who combine a strong basic offering with targeted value-added services can differentiate themselves from the competition in the long term. The path to successful growth in the SME segment lies through a needs-oriented, customizable product portfolio and a convincing price-performance ratio, which is supplemented by digital and personal consulting options.
"The study shows that personal relationships with sales partners remain crucial for smaller companies. Insurers should provide their sales teams with targeted training and offer digital tools and processes to meet the needs of this customer group. Value-added services that are clearly aligned with the core business strengthen the position as a trustworthy partner and promote long-term customer loyalty - a strategic opportunity in a high-growth market segment," summarizes Joachim Ziegler, member of the Board of Directors of InsurTech Hub Munich.
Further information on the study can be found on the Roland Berger website.
