A recent study confirms that small PC insurers can compete successfully against larger competitors. The Conning Research study, entitled “Property-Casualty Small Insurers: From Static to Strategic,” analyzes the small insurer segment, their strategies for success, and their impact on larger insurer strategies (see here & here). Key points:
- Over the long term, small PC insurers have maintained market share relative to large insurers at approximately 20%
- Specialization plays a role in strong results
The competitive advantages larger companies enjoy through economies of scale and diversification opportunities that help them reduce risk are not the only approach to success in the PC insurance market
Small insurers can pose a significant competitive threat to large insurers because of their ability to build entrenched insurer-client relationships in certain market segments and their ability to develop rapidly in markets with constrained capacity
This study follows two similar studies (see here) with similar conclusions, the most recent of which was conducted in 2002.
Brought to you by Tennant Risk Services.
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Posted by: John | July 13, 2011 at 11:59 PM
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Posted by: content writing | June 03, 2011 at 06:51 AM
We sometimes don't see this as a big issue. But it's nice to see someone addressing it.
Posted by: Australian US Real EstateTax | April 10, 2011 at 10:32 AM
This is not easy to do and takes time, but is possible if the proper work is put in place.
Posted by: Insurance | January 20, 2011 at 06:32 AM
I totally agree with this. The sum of all parts is always greater than the whole. Even if they are small insurers their good strategy will be their ticket to success.
Posted by: Arizona Auto Insurance | November 24, 2010 at 09:21 AM
Business insurance designed for small business is, to my opinion, one of the most smart moves that have been done in this area in a long time. Small business have special needs and deserve a special agent and policy accordingly.
Posted by: commercial insurance quotes | November 17, 2010 at 04:20 PM
Make sure you are not under-insured. There are a lot of issues to look out for and make sure to hire a professional.
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Posted by: INSURANCE CLAIM ADJUSTER | September 28, 2010 at 01:11 AM
small business owners know their employees personally and have more limited budgets.definitely they have command and control over their performance of employee and proximity of clients helps them to create trust.
Posted by: life insurance nz | September 27, 2010 at 06:05 AM
Yes, big is no longer beautiful. Small speciality companies also give cheap dui insurance quotes and best services
Posted by: Kamlesh | September 26, 2010 at 10:58 PM
It's good to see some good news about smaller insurance. I'm an independent insurance agent in Utah and I have a hard time convincing people that they don't have to go with one of the big 3 companies. In fact many of the smaller companies are stronger financially. You can see all of the companies I represent at www.raygroupinsurance.com
Posted by: Josh | September 13, 2010 at 08:04 PM
The personal side of business is what makes small firms competitive with large ones. The giant corporations cannot match the insurer-client relationships that smaller firms have. This very fact is the reason why there will always be small firms in the market.
Posted by: Stahl Insurance | July 30, 2010 at 12:13 PM
Its a nice piece of thought you shared with Us...Thank you very much for this post.
Posted by: limo hire | July 27, 2010 at 10:29 AM
I personally believe the insurance companies out there are too big. We need more "mom and pop" shops that actually care about their customers. Nice article and good point!
Posted by: AARP Life Insurance | April 19, 2010 at 08:05 PM
It is so true. A small competitor can easily begin to rise up and compete with the big dogs. This is not easy to do and takes time, but is possible if the proper work is put in place.
Posted by: long term care insurance | March 02, 2010 at 12:47 AM
I represent several smaller carriers and absolutely agree with this information. The smaller carriers often have more competitive rates.
Posted by: arizona insurance | February 04, 2010 at 10:36 PM