Small and medium-sized enterprises (SMEs) are of enormous economic importance both in Germany and throughout Europe. They represent the vast majority not only in terms of the number of enterprises, but also in terms of employees, turnover and profits. It is therefore obvious that this market is also interesting for insurers. Commercial and industrial insurers have countless opportunities here to win new customers and thus increase their turnover. However, it is precisely this area that is undergoing major change. Conventional products and distribution channels therefore lead less and less to the goal. With appropriate innovations, however, it is possible to exploit the high potential of this market.


High affinity to digital processes

In the SME sector there has been a strong generational change in recent years. Until recently, the majority of company managers in this sector came from the baby boomer generation. At the time when they were taking their leading position in the respective companies, the Internet and other forms of digital communication played hardly any role. The insurance products for small and medium-sized enterprises were therefore tailored to these entrepreneurs and traditional forms of distribution were used. The generation change, however, led to the fact that meanwhile numerous company bosses come from the generation of the Millennials or even from the generation Z. They have been familiar with digital media from an early age and use it intensively for their business model.


Market largely untapped so far

So far, very few commercial and industrial insurers have reacted to this upheaval. Most suppliers still only offer the classic products for SMEs. This offers numerous opportunities for innovative insurance companies. As the market in this area is almost untapped, modern products and digital distribution channels have huge potential. Investments in digitisation make it possible to develop offerings that meet the needs of the new generation of business leaders. As the generation change will continue in the coming years, demand in this segment is expected to continue rising.