Small to medium-sized businesses are crucial but challenging. In this article, we explain why insurance companies must use proper data to fully serve those small and micro businesses looking to work with them.

Underwriting is a necessary process for all insurance companies. However, without the proper data, small and medium businesses have difficulty even reaching the underwriting step of the process. 

The needs of these small companies can be unique, unpredictable, and ever-evolving. In fact, there are over 31 million different small businesses in the U.S. – according to the Small Business Administration. That is not a prospect universe any insurance provider can afford to ignore. With that volume, it’s also no surprise that there is a great deal of diversity within the organizations. 

SMBs have a ‘need for speed’ when it comes to securing coverage

There is one thing small businesses all have in common – they want to move fast.  

74% of applicants in a recent survey wanted their insurance coverage to start within a week, and 49% of those wanted coverage the same day. This is not an audience with weeks to wait for the identification process to conclude naturally and the underwriting to begin. They may have a client opportunity hanging in the balance which requires coverage, so if the first provider can’t provide answers quickly, they will simply continue forward.

This creates a conundrum for both the insurance company and these smaller business owners. Insurers are slow to review these applications, or potentially even reject these policies without the ability to identify them and kick off the underwriting process. 

No one wins when SMBs can’t be identified quickly

This leaves businesses uninsured as they continue to hunt for an insurance company that will understand where they are at today. The insurance company ultimately loses the option to work with a small business that may have high growth potential. 

However, with B2B2C data, insurance companies can incorporate valuable data into their processes to not only surface important insights, but also enable their underwriting process to kick off fast. That way, insurers can quickly, accurately, and confidently review the business – and determine how to move forward with a policy. 

Connecting the dots on SMBs

Additionally, B2B2C data can add a layer of context where it may not usually exist. Maybe the small business owner registered their business at their residential address and recently moved to the area. Although historically disjointed, consumer data and business data combined can be incredibly impactful to tell a richer story and supply a greater volume of possible identifiers. Without these insights or the ability to connect the dots, insurers may be operating in a costly blind spot. 

AnalyticsIQ tackles this blind spot. Carriers can append their current book of business with robust insights, unlocking a treasure trove of information to add value to their current customers or in real time. Or glean insights about their prospective customers to ensure they’re identifying companies and leaders accurately. 

Essentially, even seemingly unrelated dots are now connected by bringing small and micro businesses together with data about the leaders who own or manage them.

Prospects don’t slow down, insurers speed up

With the right tools, the ever-present challenge presented when identifying smaller and medium businesses can be overcome! Insurers no longer need to slow down their prospect’s timeline to get a policy. 

Essential data can be incorporated into existing processes and systems using tools like APIs to ensure data is moving quickly. The data that AnalyticsIQ provides has made it easier for insurance companies to thrive and outmaneuver the competition, especially in an uncertain economic climate.

Going beyond just identification

Identifying a company and its leadership is great, but that’s merely scratching the surface when it comes to maximizing a connection with small and growing businesses. 

As the first data company to employ a full-time team of cognitive psychologists, we’ve built a robust database of customer segments that outline the behaviors, trends, and economics that reflect your customers and prospects. Basically, the who and the what are important, but we like to get the why as well.

This data could include data points about who they are as professionals and the motivations driving their decision-making. 

It could also give greater detail to who they are beyond work, whether they donate to one category of non-profits over another – or what kind of vehicle they drive.

The AnalyticsIQ team of data scientists build audience segments to help insurers gather the information they need to support these businesses – before they become the Google or McDonalds of tomorrow. 

When it comes to small and micro businesses, AnalyticsIQ is the go-to source

Insurers can now be empowered with the data they need to confidently win the business of high-growth companies in their early stages and add value to their current customer base. 

To learn more about AnalyticsIQ and how your business can leverage quality B2B2C Linkage Data to maximize your product and marketing efforts, check out our insurance and Connection+ resources. 

We love SMBs and using our unique digital data assets to solve problems related to better serving their needs. Reach out to discuss how we can collaborate to make your current challenges a thing of the past.