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Survey also shows what midsize businesses look for in an insurance agent
October 2020 | General Industries
BY ZERONA SHARPE
KEY HIGHLIGHTS
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80% of middle-market companies indicated that they are concerned about the future of their business
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77% of middle-market business owners indicated that they have or will be reassessing their insurance needs due to economic uncertainty
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68% of middle-market businesses struggle to determine the appropriate levels of coverage for their company’s needs
These days, running a successful business of any size is no small accomplishment. It takes time, effort and dedication. Each year, businesses have new and ongoing challenges to tackle. Whether it’s preparing for the latest cyberthreat, addressing labor trends, dealing with industry disruption, sizing up changes in consumer behavior or complying with new regulatory requirements, businesses have a lot to consider.
Of course, the events of 2020 have drastically changed the landscape for most businesses. The fallout from the COVID-19 pandemic and corresponding economic uncertainty have uprooted life as we know it. Against this backdrop, it’s no surprise that middle-market businesses are increasingly turning to their insurance agents for assistance. The best-equipped insurance agents are those prepared to deliver tailored guidance and value-added services that help their clients effectively manage their business through these uncertain times.
This sentiment was underscored in Nationwide’s latest Agent Authority research, which involved surveying over 600 middle-market businesses and 400 independent insurance agents from across the country. In this article, we will examine key findings from that research and how independent agents can leverage this information to meet the needs of clients and prospects.
As middle-market businesses are re-examining their insurance needs, they are coming up against several challenges. When businesses grow and enter the middle market, they tend to face a wider range of exposures and insurance challenges than their smaller counterparts. Addressing these challenges can take a great deal of time and effort, as well as input from various stakeholders in the business.
A majority (71%) of middle-market businesses reported that understanding what is and what is not covered under their insurance policies is a challenge. Almost the same amount (69%) of middle-market businesses — along with 67% of middle-market businesses with fleets — indicated that it can be difficult to understand the different types of coverage available to them. Finally, determining appropriate levels of coverage and policy limits is a constant struggle in the middle market. In fact, 68% of middle-market businesses struggle to determine the appropriate levels of coverage for their company’s needs.
| Top 5 insurance challenges for middle-market businesses | |
|---|---|
| General middle-market accounts | Middle-market accounts with fleets (20+ vehicles) |
| Understanding what is and what is not covered in my policy | The length of time it takes to settle claims |
| Finding the best price for my protection needs | Finding the best price for my protection needs |
| The length of time it takes to settle claims | Understanding what is and what is not covered in my policy |
| Understanding different types of coverage | Understanding insurance terminology |
| Keeping up with the new technology offered by the insurance industry | Keeping up with the new technology offered by the insurance industry |
Source: Nationwide Agent Authority research
These findings demonstrate that middle-market companies are looking for more engagement from their insurance partners. Many businesses are seeking tailored advice from their agents that enables them to understand their risk profile and make informed insurance decisions. However, for many agents, this remains a challenge. According to our research, more than half of the agents we surveyed feel they can improve when it comes to:
Practically speaking, those agencies that are positioned to deliver to their clients technical policy guidance in a timely manner will fare better than their counterparts by meeting the needs of their clients.
For many dynamic, growth-minded organizations in the middle market, a holistic approach to risk management is key to their success. Nationwide’s Agent Authority research shows that there is a strong appetite in the middle market for guidance that extends beyond traditional insurance topics. In particular, the middle-market businesses surveyed indicated that they would welcome more information on a whole host of topics, including cybersecurity, employee benefits, safety, loss control, emerging risks, business interruption and disaster planning.
These findings speak to an opportunity for insurance agents to differentiate themselves from their competitors. Agents who are prepared to help businesses solve pressing challenges, limit exposures, become more informed and take advantage of opportunities may be able to build stronger ties with their clients.
While businesses are always looking for cost-effective insurance solutions, the ability to provide competitive pricing isn’t the only factor that businesses use when selecting an agent. In fact, the top five characteristics that middle-market businesses use when selecting an agent focus more on quality of service, value-added offerings and industry know-how.
| What middle-market businesses look for in an insurance agent | |
|---|---|
| General middle-market accounts | Middle-market accounts with fleets (20+ vehicles) |
| Trustworthiness | Trustworthiness |
| A strong reputation | Knows and understands my needs as an insured |
| Superior customer service | The ability to help grow my business |
| Knows and understands my needs as an insured | Offers cost-effective insurance solutions |
| Offers cost-effective insurance solutions | Industry expertise |
Source: Nationwide Agent Authority research
Nationwide’s Agent Authority study surveyed over 600 middle-market businesses and 400 independent insurance agents from across the country
As middle-market businesses are re-examining their insurance needs, they are coming up against several challenges, from understanding different types of coverage to keeping up with new technology offered by the insurance industry
The best-equipped insurance agents are those prepared to deliver tailored guidance and value-added services that help their clients effectively manage their business through these uncertain times
Learn more about Nationwide’s Agent Authority survey and how you can strengthen relationships with mid-market business owners here. If you're an agent interested in growing your commercial book of business, please go to nationwide.com/agents.
Zerona Sharpe, Director of Middle Market Business Development
Zerona leads a team of Middle Market Business Development and Underwriting experts within the General Industries practice. She joined the Nationwide organization... in 2016 as an Underwriting Specialist before moving into a leadership role as Construction Underwriting Manager in 2018. In her current role as Director, Zerona is responsible for driving growth, profitability, retention and overall satisfaction with key distribution partners. With over 20 years in the commercial Property & Casualty space, her background includes underwriting for Zurich, Chubb, Allied World and Philadelphia Insurance Companies. Her underwriting expertise spans 50 states for all lines of business. Zerona holds a Bachelor of Business Administration degree from Eastern University in Pennsylvania, along with the Chartered Property Casualty Underwriter (CPCU) and Associate in Underwriting (AU) designations. She is an active member within the CPCU society at a local and national level; she was recently appointed as the Chair of the Emerging Leaders Committee. Read more
Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,600 U.S. independent insurance agents, small-business owners, mid-market business owners, mid-market business owners with fleet vehicles, African American business owners, Hispanic business owners and general consumers between June 9 and June 25, 2020. The goal was to understand what business owners and consumers value when buying or renewing insurance policies, explore the various challenges each audience faces concerning insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and discover the actions that business owners and consumers have taken as a result of COVID-19 and the conversations they’re having with agents. As a member in good standing of the Council of American Survey Research Organizations, Edelman Intelligence conducts all research in accordance with the Code of Marketing Research Standards.
CMO-1337AO
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