Gild Insurance Blog

The new digitally based economy not only changed the game on how consumers interact with businesses, it changed business itself. E-commerce platforms, social media, and mobile technology, to name just a few, provided resources to facilitate independence and with that, came a rise of microbusinesses, freelancers, and solopreneurs. 

In a country where small business is generally defined as employing less than 500 employees, let’s paint a more detailed picture:

• 98% of the U.S. economy is made up of businesses with less than 20 employees
• 87% of these businesses have no employees at all
• 27% of the United States working age population, approximately 54M independent workers, have participated in the gig and sharing economy

Very clearly, microbusinesses, freelancers and solopreneurs dominate the economy. However, as these businesses are very aware, few insurance carriers specifically cater to their needs. This is evidenced by the estimated 50% of small business insurance customers open to switching insurance providers each renewal period. And the main underlying issue prompting microbusinesses, freelancers, and solopreneurs to switch insurance providers is…price. This failure in pricing is a failure to adequately tailor insurance coverings to these types of businesses. 

If you ask us, 50% of customers shopping around isn’t a resounding endorsement of the industry. So, ta-da! We found another problem to work; how to connect microbusinesses, freelancers, and solopreneurs to adequately priced insurance products.

Our solution – solely partner with insurance providers that specialize in microbusinesses, freelancers, and solopreneurs, with products designed just for them, priced just for them.  

Then, algorithmically match the microbusinesses, freelancers, and solopreneurs, based on numerous factors, via our wonderful chatbot, to the tailored insurance coverages. 

And done! You never have to wonder again if your insurance provider understands your business. 

Read the first post in this series, Work The Problem Chapter 1: Commercial Insurance And The Digital Sales Problem.

Dating back as far as 2013, industry research, by the likes of PWC, Deloitte, Mckinsey, and Accenture, has been essentially begging the small commercial insurance industry to innovate.

Report after report, year after year. 

Commercial Insurance And The Digital Sales Problem

E-commerce, social media, and a new digitally based economy changed the game. Consumers began to desire quick, seamless online experiences and self-service. It was, and is still, a monumental change for insurance providers involved in the small commercial insurance market.

In fact, monumental might be putting it lightly. Small commercial insurance sales are dominated by independent insurance agents. 76% of commercial insurance transactions in the United States are conducted via an independent agent, with the vast majority operating without transactional web or mobile sales capabilities. It has been estimated over the last several years that as little as 1% of commercial policy sales are attributed to online sales. The world went digital and the entire small commercial insurance industry, insurance providers and agents alike, felt the pressure of obsolescence at their backs.

With the pressure of failure comes the instinct to survive. Simply put, fight or flight. We knew there were insurance providers out there that would choose…fight. So, we went out and found them. Together, we work the digital sales problem; how to offer quick, seamless online experiences and self-service to small businesses.

Our current solution –  a digital only experience with online accounts, chatbot technology, real time bind capabilities and coverage options in minutes. And yes, we mean current. When the next small commercial insurance digital sales problem comes up, we’ll work that too. We choose fight and so should you. 

Read the next post in this series, Work The Problem Chapter 2: Commercial Insurance And The Small Business Problem.