"Digital natives are used to having more information and service options at their fingertips which raises the bar when it comes to insurance for their businesses," said Philip Charles-Pierre, CEO of Semsee. (Credit: paulaphoto/Shutterstock.com)
When it comes to business owners belonging to the millennial and Gen Z cohorts, a high-touch strategy should be leveraged by commercial insurance agents, according to Semsee's Small Business Snapshot survey.
During policy renewals, for example, slightly more than 80% of younger business owners want agents to present new pricing and coverage options before recommencing coverage each year. Just 63% of baby boomers said the same, according to Semsee.
In fact, nearly a quarter of millennial and Gen Z business owners want to review their coverage monthly, while almost 30% said they'd like to connect with their agent twice annually. It seems Millennials could also use a hand in remembering to pay their premiums, with "I forgot" the most common reason for missing a payment.
"Digital natives are used to having more information and service options at their fingertips, which raises the bar when it comes to insurance for their businesses," Philip Charles-Pierre, CEO of Semsee, said in a release. "For agents looking to grow small commercial, younger business owners are a critical business segment, and they'll need to find innovative ways to meet their needs."
Source: Semsee Educating and communicating with younger business owners is critical as around half of millennials and Gen Z small-business owners said they were surprised by something that wasn't covered by their commercial insurance policy. Just 21% of baby boomer business owners said the same.
However, the need for education across demographics persists, with only 26% of baby boomers and 21% of younger small-business owners rating their understanding of a business insurance policy as "excellent," according to Semsee.
Agents understand commercial clients needs
Although preferences around agent interaction vary by demographic, one thing is certain: Business owners across generations are happy with their insurance providers, Semsee reported, noting more than 70% of survey respondents said their agents' understanding of their needs is good or excellent.
"But there are gaps in key areas such as lack of understanding about coverage and the desire for more information, especially among younger owners. There's a real need for agents to educate, which can drive stronger bonds with their customers," Charles-Pierre added.
He explained technology can play a critical role in delivering insurance education, enabling more efficient delivery of quotes and proposals and unlocking the potential around self-service options.
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