Winning the mid-market customer by giving them the attention they deserve

No two risks are the same in Canada’s mid-market sector – and yet, these organizations are all facing the same challenges around competition, inflation, supply chain disruptions, and a general shortage of talent.

Increased competition is driving the need for mid-market companies to constantly evolve, stay on top of emerging trends, and invest for the future – all at a time when costs are increasing across all aspects of business due to post-pandemic economic inflation.

“The cost of business is increasing for all mid-market customers, and the certainty and sustainability of the business models they’re operating in is reducing,” said Peter Janzen (pictured), VP, commercial insurance, Intact Insurance.

 “They’re facing uncertainty in the stock market, global unrest, supply chain disruption, the talent shortage, increased globalization and foreign competition, and inflation. It’s hard to make long-term decisions in such a challenging environment.”

Pressure on cost reinforces the importance of maximizing value across all business spending, including insurance and risk management. Partnering with the right broker and insurer is key.

Mid-market needs and desires

While the term mid-market is somewhat hard to define, it broadly relates to businesses that have grown to such a size or complexity that they require bespoke underwriting, pricing, and risk management.

Customers in the mid-market space are looking for more than basic insurance products and price. They’re seeking consultative partnership with their broker and insurance provider, and they’re looking to proactively manage their risk rather than rely on post-loss cost recovery.

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“Mid-market customers are looking for value, probably more so than ever before,” said Lee Rogers (pictured below), CEO of Acera Insurance, an independent brokerage formed through the merger of Rogers Insurance and CapriCMW. “How do you define value? It is different for every customer and every situation, but it all ties into service.”

Rogers said today’s mid-market customers are looking for superior service across all insurance functions, from distribution and underwriting to claims handling. They want education, clear and efficient communication, and they’re increasingly looking to partner with experts throughout the value chain.

They’re becoming “a lot more sophisticated” and proactive in their risk management and insurance decisions, according to Rosetta Bilodeau (pictured below), VP, broking & insurer relations at Acera Insurance. “Mid-market customers want to understand how insurance works, and how it impacts their day-to-day business,” she told Insurance Business.

While striving to improve their service levels, insurers have expectations of their mid-market customers in return, Janzen noted. As mid-market companies look to maximize every dollar spent on their insurance programs, Janzen believes there’s an opportunity for them to focus on proactive risk management.

“It is important for mid-market customers to work with their brokers and be proactive around loss control. They should be encouraged to invest in risk management and consider the long-term benefits for their business. Effective loss control can reduce the likelihood of claims, and it can reduce costs for the individual customers and the industry as a whole,” he said.

What do mid-market brokers want?

Acera Insurance has a significant portfolio of mid-market business, and no two risks in that portfolio are the same.  As such, Rogers and Bilodeau prefer to work with insurance partners who tackle every individual risk on a case-by-case basis, giving mid-market customers the underwriting attention they need and deserve.

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“We’re looking for partners who make underwriting decisions based on risk assessment and the evaluation of a business and its operations,” said Rogers. “We need that from our partners, more than anything. We could say we need more capacity, or we want our markets to be more creative and solution-oriented, but in reality, what we need is for front-line underwriters and decision-makers to rediscover the art of risk evaluation and underwriting.”

Intact Insurance has “emerged as a very dependable partner” in the mid-market, according to Rogers, because of the attention they pay to each account. Bilodeau added: “They’re one of our larger trading partners – and that’s on purpose. Mid-market is our main line of business, and they’re winning that business day in and day out. The attention they pay to us is rewarded in kind with business going their way.”

A basic solution to mid-market success

A tripartite relationship between the insurer, broker, and customer is key. Mid-market companies typically need more advice around risk management than their larger counterparts, they have unique exposures that must be communicated to underwriters, and they require customized insurance solutions to satisfy their individual risk profiles – all at a reasonable cost.

For Bilodeau, success comes down to communication, education, and sharing the right data between customers and underwriters to secure the best possible insurance solutions. She added: “This is a people business. We must talk to each other because that’s where we’ll share the little titbits of information that might differentiate a risk for an underwriter.”

Janzen believes there’s a “huge opportunity” to hold tripartite meetings with the insurer, broker, and customer in the mid-market space – a practice that happens regularly with large, risk-managed customers.

“Getting everyone around the table, and building rapport, trust, and respect across those three parties will be beneficial over the long-term,” he told Insurance Business. “As the inevitable claim happens, having that personal relationship is important. I also think there’s more opportunity to bring in loss prevention and claims professionals into those discussions.

“In the mid-market space, every risk is bespoke. It’s really important to have strong communication so that all parties understand the risk and can have the best shot at creating a good solution. I think more collaboration in our business will be good for relationships, as well as the long-term profitability and sustainability of mid-market insurance products.”