There’s a rapidly growing market for businessowners policy (BOP) programs, and fortunately for insurers and their customers, the tools to help meet the demand are more advanced than they’ve ever been. But BOP is a challenging and nuanced market spanning many segments and sizes of small business, from gig workers with minimal assets to sizable physical locations where millions of dollars change hands.
U.S. Census data shows that new business formations exceeded 300,000 in four of the past five years, based on final 2018 and 2019 data and estimates for 2020 through 2022. Verisk MarketStance° data shows the resulting growth in BOP premiums, which increased 17.5% from 2021 to 2022 as the economy rebounded after the pandemic. A further 10.3% increase is projected through 2023.
How can insurers narrow the field of potential customers to businesses that fit their specific risk appetite, specialization, and geographic targets? A new Verisk white paper, Where Going Small Can Be a Big Deal, explores how an insurer can create a blueprint for a BOP program and construct it with purpose-built tools for optimizing every aspect of the business.
At the exploratory stage, granular data broken out by risk classification and refined to the ZIP code level can be critical in helping identify and size possible markets:
Tools such as these can make the heavy lift of launching a BOP program easier to manage. And with a full range of data, analytics, and technology to support the next steps, insurers can find a profitable place in a small-business market shaped by new technology, evolving business models, changing regulations, and emerging risks.
Learn more about solutions to ease entry into the BOP market—and sustain that business across the value chain—when you download the white paper, Where Going Small Can Be a Big Deal.