Growing middle market segment wants closer interaction with insurers, Travelers finds
Middle market companies want to see better interactions, exchanges of information and relationships with agents from their insurers, according to the Travelers Middle Market survey.
Scott Higgins, president of middle market, national property and business insurance field, Travelers
“Every distributor, agent, broker out there understands the importance of their role in being a trusted advisor for our customers, and it feels like the same holds true for the carrier,” said Scott Higgins, president of middle market, national property and business insurance field at Travelers.
The survey asked 1,000 business decision makers from U.S. mid-size companies, defined as companies with 50 to 999 employees by Verisk’s Insurance Services Office, about their insurance buying habits and how they define the value they are getting from insurance products.
In the U.S., there are about 300,000 middle market companies, comprising a $152 billion marketplace, according to the Insurance Services Office. The market is growing, with a projected 7% three-year CAGR by 2026, the Office reports.
About two-thirds of Travelers survey respondents defined the value of working with external business partners and vendors as getting the best products and services for a fair price. Also, 11% of respondents said value is simply getting the best product regardless of price.
“They’re saying, we are going to buy the insurance, but we have a much higher expectation around what value should be derived from that,” Higgins said. “To be successful in the space, you not only have to be price competitive, but you have to offer products and services that really have a value proposition for the customer.”
Most respondents – 92% – are looking for more than basic and inexpensive coverage. Responding to other questions about what they want from insurance carriers, 70% prefer a carrier capable of building a relationship, 69% want a carrier to understand their business and 63% will buy all their insurance from the same carrier if that carrier has deep knowledge and experience in their industry.
“They’re looking for a company [that] can align with their needs, and they want to be able to trust that they can drive a strong relationship with the account executive, risk control consultant, claim professional or whoever is on the team,” Higgins said.
Along with closer interaction with carriers, policyholders also want more frequent interaction, according to Higgins. This means live interaction and regular engagement more than once a year, he added.
