Member Content

FintechOS: The Future of SME Insurance is Customer Centric

For decades, SMEs have faced a financial gap from banks and insurers alike, limiting their ability to face risks and grow. How can insurers better serve SMEs’ needs, and gain market share at the same time?

Last year, the FCA identified 4,000 “predominantly small and medium sized” firms – the largest commercial segment in the UK – as having low levels of financial resilience and being at a heightened risk of failure following COVID-19 shocks.

Even ahead of the pandemic, SMEs’ need for external finance – to stay alive or fund expansion plans – was estimated at €400 billion ($481 billion) in 2019 in Europe alone, where SMEs account for 65% of the private-sector employment (or about 100 million workers before the pandemic outbreak).

When such big crisis hits, SMEs – whose cash is their lifeblood – face a major threat to their own viability. This is the reality-check or the playground where insurance companies have kicked off digital initiatives to grab new market share or, most of times, to reduce customer churn (an Accenture report released in 2015 showed that customer disloyalty was costing insurance companies $470bn across personal lines, life and P&C, and only 29% of customers were happy with their current insurance provider).

“Trust and transparency are more important than ever due to financial challenges that have emerged during the pandemic”, according to McKinsey, who ran a survey to track recent SME market trends.

Can such a vulnerable segment of customers turn into a profitable one? How?

Read the full article here.

Share this Article
Holland Fintech Digital Transformation Paper 2024
Holland Fintech is proud to present the Digital Transformation Paper 2024. This whitepaper, led by the Holland Fintech working group Digital Transformation in collaboration with Accenture, provides valuable insights into the dynamics and key factors influencing successful collaborations between fintechs and incumbents.
Holland Fintech Pavilion at Money 20/20
Money 20/20 – Join our Pavilion! The Holland Fintech Pavilion offers a unique opportunity to connect with a global audience of fintech professionals. Located at the heart of Money 20/20, the pavilion provides a central hub for networking, collaboration, and exposure.
Amsterdam Fintech Week
Amsterdam FinTech Week is back on 2-4 October 2024! Be a sponsor, co-organizer, or just participate in our community events.

How likely are you to recommend Holland FinTech?