SMALL COMMERCIAL INSUREDS: EXPECTATIONS FOR NEW BUYERS QUANTIFIED IN KEY SURVEY: Generational trends point to inherent differences and new business approaches.

• Position: [COVER]

* The market for small business insurance is evolving in many ways. With the number of small businesses on the rise, emerging risks and new products to cover those risks, and even shifting business models due to the pandemic, there are many opportunities for new small commercial sales.

For agents looking to grow their small commercial, younger business owners are a critical segment. This is especially true as they plan three to five years out and the number of new business owners under 40 continues to increase.

This study examines the impact of generational preferences on 'selling

and servicing' small commercial.

What our survey found is telling. Next generation business insurance buyers clearly want more from their agents: more service, more options, and more communication.

It's important for agencies to be prepared.

We've designed this report to not only examine the insurance buying and service preferences among Millennials, Gen Z and Baby Boomer business owners, but to provide practical information to advance your ability to attract small business owners of all generations.

THE GOOD NEWS: CUSTOMERS ARE HAPPY, AT LEAST RIGHT NOW

It's clear that participants in our survey value their agents and the insurance buying and services experience they provide. Both Millennials/Gen Zs and Baby Boomers

give high marks to their agents. Overall, 72% of Baby Boomer and 70% of Millennial/Gen Z business owners rate their agents' ability to understand their businesses and insurance needs as good or excellent.

Most business owners are also pleased with the buying process, with 72% of Baby Boomers and 68% of Millennials/Gen Zs reporting excellent or good experience with getting pricing and coverage options from their agents.

BUT THEY WANT MORE EDUCATION ABOUT INSURANCE

Insurance is complex. That's one of the reasons so many small business owners work with agents for their insurance needs. There's ample room for agents to play more of an advisor/educator role, especially with younger clients.

When it comes to understanding their policies, only 26% of Baby Boomers and 21%

of Millennials/Gen Zs give their own policy acumen the highest marks.

Younger business owners need more information and education. We asked survey respondents if they'd ever been surprised about their insurance claims--both positively and negatively. Overall, 50% of Millennials/Gen Zs say they have been surprised to find something wasn't covered by their policies that they expected to be. An...