In our blog post, Work The Problem Chapter 2, we highlight a major issue facing the small commercial insurance market. Especially as pertaining to microbusinesses, freelancers, and solopreneurs. That issue is pricing and the need for tailored insurance.
Underwriting an insurance product to attain a price point adequately reflecting risk and acceptable to consumers is no simple feat. That concept holds true not only for the actual work involved in creating the products, but also, to the efforts necessitated to entice an insurance provider to develop the products in the first place. Just because millions of microbusiness, freelancers, and solopreneurs exist, does not mean they are wanted.
The fundamental thought process that has been plaguing the smallest of businesses since the dawn of insurance and financial services remains the same. Small is equated with less. The less profit a business generates, the lesser the opportunity to make money offering that same business products. Though that statement may be factually correct, industries now have an opportunity to fundamentally change how they view microbusinesses, freelancers, and solopreneurs, including the insurance sector and any industry offering products that can support them.
Why Tailored Insurance Matters to the Smallest Businesses
When people realize that a single microbusiness is one of tens of millions, and they can actually reach those millions, the perception that ‘small is less’ loses its relevance.” All of a sudden a microbusiness, freelancer, and solopreneur isn’t just a single business on main street, it is a business on every main street. The Digital Age allows for connectivity and support mechanisms for millions of microbusinesses, freelancers, and solopreneurs, no matter the location, size, or industry, creating a viable subset of the small business market. This provides motivation to insurance providers, for example, to develop coverages customized to this market, the smallest of businesses.
In this shift of perspective lies the importance of the Gild Community. Together, we assist larger businesses, like financial institutions and insurance providers, to see the bigger picture. We work to shift the perspective.
Small is desirable. Tailored insurance is a necessity.
We know you always knew small had merit. But now, we are utilizing that knowledge to help millions of enterprising individuals, and we thank you.
