Page 37 - 2016 State of the Market from AmWINS

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and cyber are common coverages that savings because premiums are small to reforms in May 2016. Lloyd’s America is in
small businesses may not buy without an begin with,” Gresham says. “Providing the process of lobbying for a bill that would
agent explaining the importance of having resources on a timely basis, responding enable E&S insurers to compete with
them and the intricacies of the coverage,” quickly to questions, and delivering a the NFIP in the private (residential) flood
Sloop says. “In turn, those agents need consistently dependable product can make insurance market.
breadth of product and the ability to stay a big difference in attaining and retaining
on top of emerging trends.” accounts.” “One of the advantages of Lloyd’s is that
they are willing to think outside the box,”
With strong competition, premiums for Hot sectors in the small business market says Nicola Golder, senior broker in the
small businesses are declining, but they include lessor’s risk only, contractors, property division at THB Group in London.
are typically declining in the low single- restaurants, bars, and taverns. “With “Syndicates are hungry for business and
digits in contrast to double-digit decreases the substantial amount of new capacity have recognized the opportunity in the
being seen by larger accounts. “The small coming into the market, several sectors flood space. Underwriters are therefore
business market is less volatile overall than have become less difficult to place over the willing to offer incentives to get this
other sectors,” Gresham says. “There is a past three years,” says Sloop. business, be it through reduced rates or
bit more rate movement in property than increased commission.”
casualty, which is also true across other Lloyd’s continues to expand in the small
sectors.” business market, with syndicates open to Seizing opportunity in the small business
restructuring programs and being creative sector requires not just operational
Although rate decreases are still welcomed with terms. One area of particular focus efficiency, but also strong partnerships with
by buyers, price may not be a deciding is flood insurance. Lloyd’s is looking to wholesalers and MGAs that have broad
factor for small businesses. “A 5 percent capitalize on opportunity in this space market access.
decrease may not result in significant dollar since the NFIP announced a new round of

SMALL BUSINESS PLACEMENT TECHNOLOGY

Historically, the insurance industry has been viewed as a laggard in terms of technology development. However, with a number of
investments in technology-enabled platforms targeting the small commercial marketplace, it appears the industry is poised for change.

The past year has seen a dramatic policyholders. “We believe the business strategy leader for AmWINS Access. “Our
increase in interest from venture capital models that succeed will ultimately harness investment in technology will empower
in the insurance space, driven in large technology as an enabler of, rather than a retail agents while delivering more
part by the idea that the industry will face replacement for, independent agents, and cost-effective and flexible capacity for a
disruption as a result of advancements that relationships and product expertise will changing small business market.”
in technology – similar to the changes continue to differentiate those at the top
that have transformed other segments of of the pack,” says Ben Sloop, president of “Working with a number of carriers, we
financial services over the last 10 to 15 AmWINS Access. are building a solution that provides our
years9. clients with a full view of the small specialty
“We are leveraging technology for two commercial marketplace,” says Sloop.
A number of recent venture capital different purposes – the delivery of “Insurance is a relationship business, and
infusions have focused on the disruption fast and accurate real-time quotes to our model is geared completely toward
of the distribution channel – principally by our retail agents, and for collaboration providing retail agents and their insureds
using technology to disintermediate the on new product development with our with great service, transparency and
current relationships between carriers and carrier partners,” says Scott Good, digital choice.”

9 CBInsights.com