IDC Reports Online Insurance Marketplaces Now Aggressively Pursuing the Small Business Market

FRAMINGHAM, MA – AUGUST 27, 2001 – Online insurance marketplaces are now actively pursuing small business customers. According to IDC, the historically under-served small business customer is turning to the Internet to locate coverage, and insurance marketplaces are making the process easy by allowing insurance shoppers to search for optimal coverage among several carriers at one Web location.

 

Results from IDC’s 2001 Online Insurance Small Business Survey suggest 7% of small businesses with Internet access have already used the Web to shop for insurance. The survey also indicates that businesses with fewer than 50 employees have a greater propensity to utilize the Internet for insurance needs than their counterparts with 50 to 100 employees.

"Businesses with fewer than 50 employees are less likely to be served by insurance agents," said Karen O’Brien, research manager for IDC’s eInsurance advisory service. "Online insurance marketplaces facilitate the process of matching small businesses to carriers, increasing the appeal of the small business market to insurance carriers."

Partnering with online insurance marketplaces can be an attractive and cost-effective option for insurance carriers to reach the small business customer segment. Marketplaces that offer insurance products from multiple carriers are a positive development in the small business market, as individual carriers typically do not offer coverage in all states for all types of insurance coverage. Marketplaces facilitate access to small businesses through a carrier’s agents, nontraditional insurance distributors such as banks and industry associations, and Internet portals.

IDC’s new report Small Business: The New Darling of eInsurance Marketplaces (IDC #B25186) discusses the evolution of small business as a target market for insurance carriers and financial institutions. The report looks at the roles insurance marketplaces are playing in the development of the small business insurance market and the challenges those marketplaces face. The study concludes by categorizing marketplaces serving the small business market by their offerings and their distribution models and profiles selected insurance marketplaces.

To purchase this report, contact Demetra Georgakopoulos at 508-935-4496 or demetra@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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