Business Insurance Innovations: Enabling Positive Experiences & Three Stocks To Consider

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The recipe for business success continues to evolve away from simply having the best products and services. That is still important, but top companies are increasingly focused on other objectives: enhancing the customer experience and increasing engagement.

Look at industry leaders in any field—Apple (NASDAQ:AAPL), Salesforce (NYSE:CRM), Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), Alphabet (NASDAQ:GOOGL), etc.—and there is a common denominator in their market dominance. These companies know how to create positive interactions with their customers, and they continue to invest in doing so.

That same emphasis on customer satisfaction has become evident in a perhaps unlikely market—business insurance. It is safe to say that few people would expect (or even hope for) an enjoyable experience with their insurance provider. Consumers expect a practical interaction that is, at best, not too time-consuming or frustrating.

Enabling Positive Experiences, Greater Efficiency

Most business professionals are familiar with the term “fintech.” It is shorthand for the financial technology companies in that sector used to deliver products and services more efficiently and effectively.

Business insurance companies should enable purchasers to complete transactions quickly and conveniently to ensure they receive the insurance coverage necessary to protect their company financially. An efficient method to file for coverage to ensure the company receives it has led many businesses and investors to refrain from using or investing in these services.

Business insurance companies have found various ways to increase their efficiency to ensure that businesses will purchase their policies. As more companies buy into the business insurance market, the companies will have a rise in price per share.

Creating an efficient process when receiving claims is a great start. However, companies must ensure they assist their customers throughout the process. Insurance companies should help earlier when business owners and decision-makers are researching the types of business insurance available (general liability, professional liability, workers’ compensation, commercial auto, etc.) and pricing various coverages.

Adding more value and support at the earlier stages will make the businesses feel supported. This may lead to purchasing other products or services, impacting the entire company’s value. Self-services on a website are a fantastic opportunity to allow potential customers to obtain quotes and receive answers to frequently asked questions. That process is designed so that all they have to do is provide some information about their company, and a quote is generated instantly.

This will lead to a rise in satisfied customers. The business can complete online forms and documents to quicken the process. Individuals can avoid long lines or telephone calls and complete the process through websites or online platforms. If there are any questions, licensed insurance experts are available to answer questions. But the better a company’s technology is, the more self-sufficient its customers can be.

Three Business Insurance Stock Picks

Travelers Companies 

Travelers Companies Inc (NYSE:TRV), operates in three segments: Business insurance, bonds, and specialty insurance. The business insurance segment offers worker compensation, commercial automobile and property, general liability commercial multi-peril, employment liability, and many more.

The earnings for Travelers are expected to grow by 17.16% in the coming year, moving from $14.16 to $16.59 per share. According to experts, Travelers has a forecasted upside of 13.6% from its current price of $171.02.

The Travelers Company takes pride in assisting and supporting its clients. The company is well-known for its business solutions in risk aversion and aims to bring sustainable value to every client. The company’s in-depth understanding of risk has led them to support their customers. Their risk expertise and sustainable focus had set them apart, aiming to always focus on their customers first.

The Travelers company has faced many up and down but has yet to crack under the pressure. They have been stable throughout the bull market and provide investors with a great opportunity as they aim to increase their value.

Chubb

Chubb Ltd (NYSE:CB) provides insurance and reinsurance products worldwide. The company’s North America, Commercial P&C Insurance segment, offers commercial property, casualty, workers’ compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses.

Chubb is the world’s largest publicly traded P&C insurance company and the leading commercial lines insurer in the U.S. The company fights for inclusion in all spheres of business. The team provides a range of insurance offers that cover every type of business. This inclusivity gives them a diverse offer that will be suited to any business in the U.S. Their prices are competitive, and they will find the perfect solution for every business that approaches them.

According to analysts, the price target for Chubbs has a forecasted upside of 26.3% which means a rise to $241.46 from $191.18. Chubbs pays a dividend of 1.80, higher than the bottom 25%, and has increased its dividend for the last 31 years. The dividend payout ratio is 27.61%

Many expect the price per share to rise from $17.65 to $19.52. Investors will be happy with the steady climb throughout the bull market. The company has increased its dividend every year and takes pride in the services they deliver.

Hartford Financial Services Group

The Hartford Financial Services Group Inc (NYSE:HIG) provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers’ compensation, property, automobile, etc.

The Hartford Financial Services Group has many unique offerings that set them apart from the rest of the business insurance industry. Cyber liability insurance, Workers’ compensation insurance, and Property Choice are three primary services that set the company apart. Their cyber coverage ensures that all their clients are protected against online attacks that might lead to damage. The company aims to protect and assist its clients with every possible solution that they can provide.

The Hartford Financial Service Group has a forecast upside of 17.3% from its current price of $72.83 to $85.46. Analysts stated that the company is expected to grow by 21.43% in the coming year. Raising the price per share to $9.52.

The company pays a dividend of 2.34%. The dividend has been increasing for the last three years, showing an upward moment in the company stock.

Further Considerations

In addition to enabling a better customer experience, insurance companies can increase engagement with their target market. One of the easiest yet most effective ways is by educating them.

Educating and informing small businesses will enable them to build knowledge of the processes, benefits, and additional savings that can occur through business insurance. The data will display accurate problems and issues the business owner might face, leading them to purchase business insurance services.

The insurance content will raise small business owners’ awareness of the crucial role insurance plays in increasing sales, profit, and stakeholders’ investments in insurance companies. This information will allow companies to stand out among their competitors, leaving them with a stronger customer relationship.

Final Thoughts

As the insurance landscape continues to change against the backdrop of the digital economy, service providers and businesses will need to adapt to build more consumer-centric models that improve customers’ efficiency and enable them to access relevant information and resources.

The development of these structures however requires continuous modification, yet, the end goal remains to deliver a business model that encapsulates the importance of customer satisfaction and efficiency in a highly tech-driven world.

While there are insurance companies that have seen prolific advancements through more modern digital infrastructure, there remains an opportunity for them to fill in the blanks with more innovative, and more importantly, consumer-focused products and services.