Delaware Business Insurance Update from CNC Insurance Associates, " Small Business Prefers The Personal Touch"

A recent study by JD Power revealed that small business insurance buyers prefer to by their coverage from the same agent that sold them their homeowners or auto insurance. The study also showed that insurance companies that focus on personal lines coverage are also writing the majority of small business insurance. The main driver for this trend is personal service. Customers are use to having a relationship with their homeowners/auto agent, so it is natural for them to go to that person when buying insurance for their business.  The other dynamic to this is that in commercial insurance agent shops, small business is usually unattended, allowing for renewals to go by each year without a single live contact by the agent.  Small premiums and commissions do not leave a lot of room for service before losing money.

The lesson here is that in order to successfully write small business insurance, companies and agents need to focus on it and personalize it to achieve growth. This will require a sea change of structure and operations in order to do it without losing your shirt in the process. Until next time be careful out there and know your risks.

G. Kevin Nemith Pres. CNC Insurance Assoc. & The Small Business Insurance Center
Serving DE, MD, PA, NJ & VA
www.cncinsurance.com
www.bizinsurancetv.org

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