Small-business insurance market survey finds significant shifts in consumer needs, preferences

March 31, 2022

Kelly Cusick, Managing Director, Property & Casualty Consulting Leader | Deloitte Consulting LLP
Sam Friedman, Insurance Research Leader, Center for Financial Services | Deloitte Services LP

The stage appears to be set for a paradigm shift in the small-business insurance market, at least in part due to heightened buyer awareness driven by coverage gaps exposed during the pandemic, according to a consumer survey by Deloitte Global.

However, the survey also revealed bigger-picture trends with longer-term implications, including buyer preferences for greater policy flexibility and a wider array of risk management services, along with interest in getting coverage from alternative providers outside of the traditional agent/broker system.

The Deloitte Center for Financial Services prepared a full report based on the responses of 501 US survey respondents, examining implications of the trends uncovered, as well as suggestions about how legacy insurers might adapt to compete in this rapidly evolving market. However, the additional graphs available here share data not included in our US article. These graphs document:

• Increasing awareness among small-business insurance respondents about their need for additional coverage and more types of insurance
• A surprising increase in trust since the pandemic, as well as reasons behind that boost in confidence
• Potential growth opportunities in both coverage for emerging risks and support services to keep losses from occurring in the first place
• Evidence of continued loyalty to traditional intermediaries, yet possibly offset by widespread interest in buying from alternative sources

A comparison of results among the 14 countries participating in the Deloitte Global survey in North America, Europe, and the Asia Pacific region, including 5,300 buyers across a range of industries, can be accessed here. Our US-specific report focusing on action steps insurers might consider to remain in sync with evolving buyer needs and preferences is available here.

QuickLooks are regularly published articles from the Deloitte Center for Financial Services about technology, innovation, growth, regulation, and other challenges facing the industry. The views expressed in this article are those of the author and not official statements by Deloitte or any of its affiliates or member firms.