ONLINE MARKETS CHASE SMALL BIZ

According to a new report, online insurance marketplaces are now actively pursuing the historically underserved small business customers, who are turning to the Internet to locate coverage. International Data Corporation’s (IDC) new report, “Small Business: The New Darling of eInsurance Marketplaces” discusses the evolution of small business as a target market for carriers and financial institutions, and looks at the roles insurance marketplaces are playing in the development of the small business insurance market. The report suggests 7 percent of small businesses with Internet access have already used the web to shop for insurance. The survey also indicates businesses with fewer than 50 employees have a greater propensity to utilize the Internet for insurance needs than their counterparts with 50 to 100 employees. Partnering with online insurance marketplaces can be an attractive and cost-effective option for insurance carriers to reach the small business customer segment. Marketplaces offering products from multiple carriers are a positive development in the small business market, as individual carriers typically do not offer coverage in all states for all types of coverage. Marketplaces also facilitate access to small businesses through a carrier’s agents, nontraditional distributors, such as banks and industry associations, and Internet portals.