The End of Agents? Over 60% of small business owners choose online business insurance

[Duaine]

Speed and convenience are driving small business owners to go digital with their business operations, including small business insurance. And a recent survey shows that they're increasingly turning to digital platforms that let them research, compare and buy coverage without an agent and 100% online. NEXT surveyed 1,500 nationwide small business owners in January 2025 to better understand this shift in how they buy insurance. Here's what the survey found. 61% of small business owners buy business insurance online The old ways of buying business insurance — meeting with an agent in person or on the phone — are becoming less desirable for busy business owners. And digital methods, such as buying 100% online or adding insurance through online payroll and financial services, are king. More than half of survey respondents — 61% in total — now report they're buying online either directly through an insurance company or through a financial service. This tips the scales over the 40% who report they're still using traditional brokers or agents.

Read more at: https://www.miamiherald.com/news/business/article302223064.html#storylink=cpy

 

[EckoRomeo]

"Buying insurance" =\= "having the right coverage"

So, there are probably A LOT of small businesses that are underinsured. Sounds like an opportunity to me.

 

[Duaine]

A.I. and online direct enrollment.....

 

[somarco]

buying 100% online or adding insurance through online payroll and financial services, a

DIY has been around forever and I don't feel threatened.

Most of the messes I see involve either DIY, buying from a carrier, buying from a call center or buying from an inexperienced agent.

For example . . .

Bought plan F + PDP from household name carrier. Both were overpriced. I replaced the F with G and saved him almost $100 per month. Also replaced the PDP. Again, premium was $100+ per month and he was not on any meds. Replaced with a $3 Wellcare plan.

Bought plan from his union that handles all his insurance + HSA, but he thanked me for helping him understand Medicare options. The union bud said he can use his HSA to pay all his premiums, including Medigap. Union guy never said anything about stopping HSA contributions 6 months before turning 65.

Many times . . . bought Medigap from a carrier with hot rates and new to the market. Called me once his renewal premiums were increasing by double digits. Most of the time they were not healthy enough to pass underwriting. No sale but gave me more fodder to use when a prospect is shopping around and asks if I can beat a rate from carrier X.

 

[marindependent]

DIY has been around forever and I don't feel threatened.

Agree

adding insurance through online payroll

Yep - that is an increasing challenge

Sounds like an opportunity to me.

Totally Agree

The other thing to note is a TON of small business insurance policies are TINY. Very Very small one person operations with little revenue - but only choose to get insurance because they need "a certificate" and temporarily at best. We are talking about renvenue sub $10,000, working from home, 2 year old venture, and unprofitable.

Thanks for the post.

 

[Duaine]

 

[marindependent]

Frankly if the statistic is correct - it speaks volumes for Cold Calling / Cold Emailing these ventures to simply introduce themselves and how they can assist small businesses [that are growing and have more than $100K in revenue] get their risk management portfolio together.

I mean how many businesses hire their first employee with absolutely no idea that they can be sued for asking the wrong question during the interview? Or how many professional service startups believe they are protected by a non existent liability shield?

 

[Medicare bro]

if you live long enough your job will be replaced, period. Someone or something will always replace you. Stay healthy, stay mentally alert and adapt to change.

 

[EckoRomeo]

Agree

Yep - that is an increasing challenge

Totally Agree

The other thing to note is a TON of small business insurance policies are TINY. Very Very small one person operations with little revenue - but only choose to get insurance because they need "a certificate" and temporarily at best. We are talking about renvenue sub $10,000, working from home, 2 year old venture, and unprofitable.

Thanks for the post.

Exactly.

I'm willing to bet that the larger the business the greater the likelihood they used an agent.

 

[scagnt83]

NEXT is an online P&C shop if Im not mistaken. No surprise the study they performed supports their business model.