How Small Business Owners Buy Insurance

Small businesses count for 43.5% of U.S. GDP, and 39% of private sector payroll. Small business owners are acutely aware of their risk exposure. There’s a continuity of interest between insurance companies and small business owners around ensuring that this market is responsive and robust. A Celent survey of these mercurial but passionate customers has revealed some conclusions insurers can use as they navigate this complex market:

• How do small business owners buy insurance, and how has that changed over time? The methods and channels they prefer are revealed in the survey data. Previous iterations of this study provide directional information that insurers can use to deploy products.
• How satisfied are they? Sentiment information can help insurers understand the ways in which what’s on offer is succeeding or failing.
• What are these buyers looking for in the future? Distribution strategy for this line continues to evolve. Insurers’ choices should take into account the generational mix of owners they are trying to reach, as well as the specific products they offer.

The sample size of the survey is 300. It was conducted over the course of September 10 to September 19, 2024.