- Smaller businesses in Germany are underinsured, presenting significant sales potential for insurers
- Personalized advice and digital interaction options are particularly relevant for smaller businesses
- Value-added services offer a chance to position insurers as trusted partners
The InsurTech Hub Munich (ITHM) and strategy consultancy Roland Berger have jointly published the study NXT:Commercial, which examines the needs and challenges of the insurance market for smaller businesses (10 to 49 employees and up to €10 million annual revenue) in Germany. Based on surveys of 150 executives from smaller companies and interviews with representatives from over ten insurance companies, the study explores two key questions: To what extent are the basic needs of smaller businesses being met by insurers, and can insurers establish themselves as long-term partners through value-added services?
Underinsurance Offers Growth Opportunities
Small and medium-sized enterprises (SMEs) represent about 99% of the approximately 3.4 million companies in Germany, making them a significant business segment for insurers. By focusing on the smaller business segment, the study identifies widespread underinsurance in this SME sector, driven by the high heterogeneity and varying risk profiles of businesses.
“This provides insurers with substantial growth potential through specialized offerings and the needs-based advice,” explains Claudia Fell, Partner and Head of Insurance DACH at Roland Berger. “Smaller businesses seek a tailored and easy-to-understand product portfolio that provides comprehensive risk coverage while offering a fair price-performance ratio. Insurers that offer flexibly designed product portfolios can clearly differentiate themselves from competitors.”
Personalized Advice Remains a Key Factor
A central finding of the study is that despite increasing digitalization, smaller businesses still prefer personalized advice from experts. “Trust and quick access to knowledgeable contacts are crucial,” emphasizes Fell. At the same time, businesses want digital communication channels with self-service features that allow them to view contract information, make adjustments, and submit claims.
“Insurers should therefore focus on training their sales teams in industry-specific topics to meet individual customer needs optimally and expand customer portals for smaller businesses,” Fell adds.
Value-Added Services: Close Alignment with Core Business Is a Key
The study also shows that while smaller businesses generally appreciate value-added services, these are often not fully utilized. The study concludes that insurers combining a strong core offering with targeted value-added services can sustainably differentiate themselves from the competition.
The path to successful growth in the SME segment involves a needs-oriented, customizable product portfolio and a compelling price-performance ratio, complemented by both digital and personalized advisory options.
“The study reveals that for smaller businesses, maintaining a personal relationship with sales partners remains critical. Insurers should invest in targeted training for their sales teams and offer digital tools and processes to meet the needs of this customer group. Value-added services closely aligned with the core business strengthen the position as a trusted partner and foster long-term customer loyalty – a strategic opportunity in a high-growth market segment,” concludes Joachim Ziegler, Board Member of InsurTech Hub Munich.
Read the full article in German at the Roland Berger’s website.