In our blog post, Work The Problem Chapter 2: Commercial Insurance And The Small Business Problem, we highlight a major issue facing the small commercial insurance market, especially as pertaining to microbusiness, freelancers, and solopreneurs. That issue is pricing.
Underwriting an insurance product to attain a price point adequately reflecting risk and acceptable to consumers is no simple feat. That concept holds true not only for the actual work involved in creating the products, but also, to the efforts necessitated to entice an insurance provider to develop the products in the first place. Just because millions of microbusiness, freelancers, and solopreneurs exist, does not mean they are wanted.
The fundamental thought process that has been plaguing the smallest of businesses since the dawn of insurance and financial services remains the same. Small is equated with less. The less profit a business generates, the lesser the opportunity to make money offering that same business products. Though that statement may be factually correct, there is now an opportunity to expand the fundamental way microbusiness, freelancers, and solopreneurs are viewed, not only by the insurance industry, but really any industry with products that could support microbusiness, freelancers, and solopreneurs.
The perception that “small is less” becomes less relevant when one realizes that a single microbusiness is not only one of tens of millions, but also, that those tens of millions can actually be reached. All of a sudden a microbusiness, freelancer, and solopreneur isn’t just a single business on main street, it is a business on every main street. The Digital Age allows for connectivity and support mechanisms for millions of microbusinesses, freelancers, and solopreneurs, no matter the location, size, or industry, creating a viable subset of the small business market. This provides motivation to insurance providers, for example, to develop coverages customized to this market, the smallest of businesses.
In this shift of perspective lies the importance of the Gild Community. Together, we assist larger businesses, like financial institutions and insurance providers, to see the bigger picture. We work to shift the perspective.
Small is desirable.
We know you always knew small had merit. But now, that knowledge is being utilized to help millions of enterprising individuals and we thank you.