Nationwide’s survey of 400 middle market business owners highlights three critical themes for distribution partners and outlines steps they can take to help support their commercial clients.

Risk management is a key consideration for middle market businesses
Most businesses are prioritizing risk management and safety planning. Eight in 10 (83%) have a dedicated safety budget, averaging about 6% of their total budget. High-risk industries like Construction and Manufacturing allocate even more to safety at 19% and 13% of their annual budget, respectively.

Roughly 9 in 10 businesses have formal risk management policies in place and review or update them at least annually, if not more often. However, 21% of businesses report not having a business continuity plan, leaving them vulnerable to operational disruptions.

Over the next 12 months, business owners’ top risk management priorities include navigating a potential economic downturn, easing supply chain constraints, and staying on top of regulatory changes.

Key takeaway:
“Despite nearly 90% of businesses having formal risk management policies that are regularly reviewed, a critical vulnerability remains: one in five businesses lack a business continuity plan. This gap leaves them exposed to potential disruptions that could severely impact their operations. Agents can help identify and fill these gaps with commercial clients, partnering with them and carrier-provided risk management experts to develop and implement a comprehensive business continuity plan. These efforts can significantly enhance clients’ resilience and ensure they’re prepared to navigate unexpected challenges,” said Mark McGhiey, Nationwide’s leader of Commercial Lines Risk Management.

Evolving regulations test businesses but technology provides support
Middle market business owners overwhelmingly agree that evolving regulatory and safety standards present obstacles for their operations. Three quarters (78%) say changes have had an impact on their risk management needs and 1 in 5 (20%) feel their business is unprepared to respond to new regulations. Of the regulations their businesses deal with, most owners find data privacy and security requirements the most difficult to comply with.

Technology provides crucial support in the risk management or regulatory realm for 76% of middle market businesses, with 11% reporting its central to all their risk management activities and 65% using it in specific areas but not comprehensively. Owners report improved efficiency and compliance to regulations, enhanced data analysis and reporting, and better real-time monitoring of risks as a result of their technology use.

Key takeaway:
“Commercial carriers offer industry-specific resources and services to help businesses fill protection gaps and comply with standards and regulations, such as jobsite forms and incident report templates for construction or guidance on emergency action plans and PPE selection for manufacturing. Business owners also say distribution professionals can add value by communicating regularly about safety or regulatory updates and implications to their operations,” said McGhiey.

Business owners have difficulty merging risk management with business success
Despite the many safety actions businesses are taking, many owners still struggle to recognize the value and impact of their efforts: only 51% currently view their risk management initiatives as effective. Their top challenges with safety and risk management include:

• Cost of safety measures (38%)
• Maintenance of safety equipment (31%)
• Resources required for conducting regular safety assessments (30%)

These concerns underscore the importance of connecting risk management with business strategy. By working with distribution professionals and industry risk management experts, business owners can develop tailored risk mitigation and safety strategies that align with their company’s priorities. Risk management professionals frequently discover easy, cost-effective strategies to help businesses improve their risk profile and safety records, helping to enable business success.

Key takeaway:
“Leverage carrier-provided resources to help enhance your safety initiatives,” McGhiey said. “Working with industry-specialized safety partners like Nationwide’s Risk Management experts can help commercial customers identify protection gaps and design customized, budget-friendly strategies that can improve safety outcomes while seamlessly integrating into their operations.”

Learn more about Nationwide’s Risk Management services and resources.

• In 2024, only 36% of Americans gave a positive rating of their personal finances. 

 
Top financial goals: Nationwide’s survey also revealed 57% of consumers are focused on managing essential expenses and 47% paying off debt. 

Casey Kempton, Nationwide’s President of Personal Lines Insurance, noted “As consumers focus on how best to manage their finances during this uncertain economic period, an insurance agent can serve as a valuable partner to help people understand how best to manage the sometimes-delicate balance of saving money in the short term without exposing themselves to significant future financial risks.”  

Insurance premiums are a target for budget cutbacks: Most consumers expect costs to continue rising over the next year, especially cost of living expenses (69%) and housing costs (66%). The rising cost of insurance plans are also on consumers’ radars as 77% have reviewed their policy in the past six months, or plan to do so by the end of the year. Over the next six months:  

• 31% say they will look for ways to reduce premiums on existing insurance policies 
• 25% say they plan to requote their policies with a different carrier 
• 18% plan to decrease coverage on their existing policies 
   

Reducing insurance coverage might expose policyholders to unnecessary risks. Lowering coverage limits could result in larger out-of-pocket expenses in the event of an unforeseen loss. Moreover, canceling a policy completely increases vulnerability of financial ruin if a significant event were to take place.  

Deferring critical home maintenance: Housing costs appear to be impacting financial wellbeing, with 40% of homeowners who say they have delayed necessary structural repairs to their home over the past 12 months. Of individuals who have delayed performing home maintenance or necessary renovations, 69% say it costs too much and 48% say they have other financial priorities right now (such as paying off debt or other expenses). 

Other budgetary strains being made to get by: 

• Delaying big purchases (57%) 
• Searching for higher paying jobs (20%) 
• Picking up gig or secondary work (16%)  
• Reducing investments in retirement funding (12%)  

Advice for those considering cutting coverage: Work with your agent to help you understand the implications of policy changes and how they would impact your current finances. If you are looking for ways to save on your insurance, talk to an agent. Insurance is a layer of security that policyholders can rely on, especially in the face of financial uncertainty that consumers might be feeling other places.  

Just 19% of small business owners and 39% of mid-market business owners rate business conditions in the U.S. economy positively, down 8 points and 19 points, respectively, since September 2022.

Inflation, interest rates top of mind
Persistent inflation and rising interest rates continue to impact their businesses, with nearly three quarters of small and mid-size business owners citing inflation as their most significant challenge, up 11 points since September 2022.

• Increased interest rates are right behind with 62% of mid-market business owners and 50% of small business owners saying it’s a continued challenge (up 4 points and 15 points, respectively, from fall 2022).

Despite their grim views of the economy, most business owners (small-55%; mid-market-74%) are surprisingly optimistic about their own business operations.

• 74% of mid-market and 55% of small business owners rate their business conditions as good or excellent.

Returning to pre-pandemic practices
Business owners are even reversing some actions taken over the course of the pandemic, including:

Hiring more, laying off less:

• 21% of small businesses owners say they have hired more workers, up 8 points from the fall.
  • Only 6% of small businesses have laid off employees, a drop of 4 points from the fall.
• 42% of mid-market owners have hired new workers, an 18-point jump.
  • 18% of mid-market businesses conducted layoffs within the past 6 months, down 5 points from the fall.

Managing supply chain disruptions:

• 21% of small businesses say supply chain disruptions are among their biggest challenges, a drop of 8 points from the fall.
• 31% of mid-market businesses list supply chain disruptions as one of their biggest challenges, consistent with their responses from the fall.

Staying open longer:

• Only 10% of small business owners have reduced operating hours – down 7 points from the fall.
• 14% of mid-market owners have reduced operating hours, a decrease of 11 points.

These positive indicators demonstrate that business owners may be finding their footing in some areas as they continue to navigate inflation effects and rising interest rates.

• Cutting costs remains a top priority for business owners (63% small business; 49% mid-market) as they hedge where they can to minimize risk.

“Business owners are closely analyzing today’s economic uncertainty, but they’re also confident in their operations as they manage through the conditions to best meet demand and remain competitive,” says Russ Johnston, President of Business Insurance at Nationwide. “As business owners navigate the tight labor market to add staff, get back to traditional operating hours and explore cost-saving strategies, it is imperative that they review risk and ensure the business does not compromise on long-term protection.”

Lingering economic factors: bank failures and continued interest rate pressures
As business owners look ahead, they should also be diligent with their financial planning - especially as worries about the health of the banking system remain and interest rate uncertainty continues.

• The majority of business owners, small (71%) and mid-size (80%), are concerned about the health of American banking institutions following the recent bank failures. Almost 3 in 10 business owners have reevaluated where their business banks.
• Four in 10 small (46%) and mid-sized businesses (40%) feel the Federal Reserve should cut interest rates to ease pressure on the economy, while 13% and 23%, respectively, think the Federal Reserve should be more aggressive in raising rates.

These unknowns mean that businesses could be impacted yet again by heightening interest rates and be forced to halt hiring or lay off workers, reversing the progress they’ve made since emerging from the COVID economy.

“It's understandable for business owners to be focused on getting through today’s inflationary and recessionary environment. However, the past few years have taught us how crucial it is to hedge against risks and prepare for unforeseen threats,” said Juan José Pérez, President of the Nationwide Corporate Solutions organization. “Business owners have enough on their plates today, so we encourage them to partner with financial advisors and other risk management partners who can help them navigate today’s uncertainty and be prepared to take advantage of opportunities to grow their business when the recessionary environment eventually passes.”  

More findings from Nationwide's 2023 Economic Impact survey can be found here.

Survey methodology:
Nationwide commissioned Edelman Data & Intelligence to conduct a 15-minute quantitative online survey among a national sample of 400 U.S. small business owners and 400 mid-market business owners between March 30 and April 28, 2023. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

A recent Nationwide Agency Forward survey indicated that, while customers appreciate a digital insurance claims experience, having an agent or customer representative be part of the claims process is just as important—especially in helping customers during difficult moments.

“When we are putting the customer and service representative together in a digital world, it is still crucial that the customer feels supported by being able to reach a person if they need it,” said Martha Frye Nationwide’s senior vice president of personal lines claims. “Claims are usually filed after something bad has happened, so we’re trying to strike the balance of helping with personal expertise, along with digital solutions to keep them informed and speed it along—both are really important.” 

The Agency Forward survey revealed three key findings:

• Handling a claim quickly and having access to an agent/customer representative are most important
• Consumers are interested in a digital experience when filing/managing a claim
• Most policyholders are satisfied with the claims process

Getting comfortable going digital
Customers are getting comfortable with digital tools and realizing the benefits. Most customers are aware of the complexity of their situation and have higher expectations for low complexity claims to be handled more quickly and easily. One way they can do this is by embracing digital tools to be involved and stay updated on the status of their claim. Consumers are most interested in websites, apps, texts and emails. In fact,

• 75% are interested in a website or app where they can track the progress of claims from start to finish
• 68% are interested in recurring texts or email alerts on the status of a claim
• 67% are interested in a website or mobile app to upload pictures or videos to begin a claim

 “Nationwide was the first to add two-way texting, that dramatically increased utilization and interactions, which was more effective than just pushing information at people. Nationwide saw an increase in two-way texting in 2021. Customers reached out to us via text 229,000 times, this was a 183% increase from the previous year,” explained Frye. “Agents told us that mobile texting is facilitating faster scheduling because it cuts down on voicemail exchanges.”

Human interaction is still important
There are moments of truth for your ability to talk to an agent or representative who is an expert to meet needs. There are also transactional moments where customers value digital tools. The future is at the intersection, being a digital brokerage and knowing the local customers.

The top three areas of interest when filing a claim are similar, but agents place less of an emphasis on digital tools.

Most important areas of filing a claim:

• 74% of consumers, 65% of agents report having a claim handled quickly is important to customers
• 58% of consumers, 51% of agents report being able to speak to an agent or claims representative over a phone call is important to customers
• 36% of consumers, 31% of agents report having a digital claim tracker to track claims from start to finish online or through an app is important to customers

“Customers continue to tell the industry that they want to speak to someone upfront to understand their coverage and figure out next steps. Once they get everything set, then they’re more willing to do digital interactions,” explained Frye.

Overall, satisfaction is high
Most people who purchase an insurance policy hope to have little interaction with their insurer beyond the point of purchase, which stands true as only 3 in 10 said they filed a claim in the last 12 months. Auto-related claims were two times more likely to occur (19%) than a property claim (9%), and overall satisfaction was high:

• 82% of consumers say they are satisfied with the insurance claims process. Those who are not satisfied complained that: filing a claim was a slow process (26%), was a difficult process (22%), required a lot of paperwork (22%).

“More than ever, consumers want to decide how they will interact with their carrier based on their need. While digital tools can make certain parts of the insurance experience easier, customers will remain reliant on their agent in moments of need,” concluded Frye.

The survey revealed three key areas for insurance agents to focus on as they serve clients and run their business in today’s environment:

• Clients are asking agents to provide guidance on a wider range of topics than in years past
• As clients reconsider their future work and living situations, agents need to be thinking more about digital tools to help retain and attract business
• Both consumers and business owners prioritize similar areas when buying or renewing their policies

“Today’s insurance agent must balance both the growing needs of existing clients and the needs of prospective clients whose preferences are shifting toward digital offerings that provide easy, timely access to insurance help when needed,” said Peter McMurtrie, president of P&C Commercial Lines at Nationwide. “Our survey results show that while agents’ influence with their customers is growing, it’s critical for them to leverage new ways to advise clients virtually and in-person as well as sharpen their knowledge about complementary protection solutions clients may benefit from.”

Insurance agents are being asked to do more
The Agency Forward research identified clients’ need for insurance agents to be up-to-speed on a wider variety of insurance and protection solutions than this time in 2020, opening the doors for more cross-selling opportunities. Middle market business owners, often with more complicated and risk-prone operations, showed the most interest in a range of non-traditional insurance topics while small business owners saw the biggest increases in a range of topics compared to 2020. Outside of traditional insurance topics, clients are increasingly interested in:

• Employee Benefits: Middle market owners – 59%, Small business owners – 37% (+15% since June 2020)
• Retirement: Middle market owners – 39%, Small business owners - 32% (+14%), Consumers – 29%
• Cybersecurity: Middle market owners – 41%, Small business owners – 28% (+10%), Consumers – 20%
• Banking: Middle market owners – 52% (+12%), Small business owners – 18% (+7%), Consumers – 24% (+6%)

Agents need to be thinking about digital tools to retain and attract business
The pandemic has influenced many clients’ perspectives on where they’ll live and work in the next five years and how close they feel they need to be to their insurance agent. In fact:

• 34% of consumers plan to move away from their current location in the next five years and about a quarter say the pandemic impacted this decision
• At least 1-in-5 business owners intend to reduce, move, or eliminate offices in the next five years with middle market owners (77%) being three times more likely than small business owners to say the pandemic influenced their plans

As a result of these shifting dynamics, 47% of agents are concerned about their ability to retain clients who relocate and 61% plan to invest heavily or moderately to attract, maintain and foster relationships with clients outside their current geographies.

“Although 57% of agents feel clients want their agent located nearby, less than half of consumers and small business owners agree with that sentiment,” said McMurtrie. "As clients seek to utilize digital means of interacting with their agent more than ever, Nationwide is working with agents to offer resources and support to help agencies evolve their use of digital and grow their business.”

Consumers and business owners prioritize similar aspects when buying or renewing their policies
Business owners and consumers shared similar beliefs in what they identify as being most important areas when it comes to buying their policies. Having access to an agent who can help when needed and personalize coverage to fit client needs shines through as a high priority for all audiences.

Clients’ top priorities include:

• Being able to talk live to a person when you have an important question or issue
• Working with an agent who can personalize coverage to fit your needs
• The agency/carrier has a smooth claims process and has proven they can deliver in times of crisis

Insurance customers reported increased challenges with insurance in 2021
Small business and mid-market business owners had a particularly challenging year when it comes to managing their insurance. About half of small business owners struggle with finding the best price for their protection needs, understanding insurance terminology, and the length of time it takes to settle claims (45%, an 8% increase since June 2020).

Mid-market business owners have similar challenges, but about three-quarters also report difficulties with the length of time it takes to set up their coverage (+11% since 2020) or receive insurance quotes (+7%) and their ability to quickly connect with their agent by phone (+ 7%).

Similar to 2020, consumers continue to struggle with the length of time it takes to settle claims (69%), understanding different types of coverage (42%), and finding the best price (42%).

Despite these trials, business owners’ and consumers’ confidence in their agent’s ability to help protect them grew in 2020 as 90% of middle market business owners (+7% since June 2020) and 69% of consumers (+8%) say their agent regularly works with them to ensure they have the right coverage for their needs.

Carriers can help agents adapt to changing needs and preferences
As agents look for ways to differentiate themselves and grow their businesses in today’s environment, carriers can step up to provide solutions to enhance their interactions with clients.

1. Look to carriers that offer a breadth of products, services, and expertise to help you address clients’ traditional and add-on protection needs, like cybersecurity, employee benefits and retirement. With 3-in-10 consumers sharing they’re worried they’re not making the right steps to reach their retirement goals, it’s a good time to open these conversations with clients.
2. If you’re not already, talk with clients about bundling policies with the same carrier to save them valuable time and money. Seven-in-10 consumers currently bundle policies with the same carrier and feel it saves them time. Another 60% of personal lines-focused agents and half of commercial lines-focused agents also feel bundling for customers improves retention¹.
3. Use digital tools to grow your agency’s reach to help attract new customers and provide an optimized experience for current customers. Consider incorporating search engine optimization and identifying virtual networking and social selling opportunities to more efficiently reach new prospects.
4. As business owners re-consider the locations of their offices and how they will be doing business in the future, leverage virtual safety resources, like Nationwide’s virtual risk management consultations, to have experts review client programs, identify potential risks and provide solutions to keep their businesses running smoothly – no matter where they’re located or how they’re doing business.
5. Agency Forward offers timely, relevant expertise on the topics that matter most to agents and their clients; from economic insights and guidance for clients to advice to help agents manage and grow their business.

¹ Source: Feb. 2020 Nationwide Agency Forward Digitization and Bundling study

Methodology:
Nationwide’s ongoing Agency Forward research series works to track industry trends by surveying independent insurance agents, various business owners, and consumers. Nationwide commissioned Edelman Data & Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,800 U.S. independent insurance agents, small business owners, middle-market business owners, African American business owners, Hispanic business owners and general consumers between June 22 – July 7, 2021, to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy, and find out the actions business owners and consumers have taken as a result of COVID-19 and the conversations they’re having with agents. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.

“Before, I thought only the younger people want to go digital, but I’ve seen customers of all ages going digital,” said Haith. “We’re learning which of our customers want to be self-sufficient, and which ones want us to handle their needs. We have got to be able to manage both.”

For Marcus and other agents around the country, the challenges of 2020 accelerated the need to adopt digital insurance processes. And while digitization has benefited customers and agents, the journey hasn’t been without a few rough patches.

New research released today by Nationwide shows 93% of agents feel digitization has enhanced their agency’s success, but 8-in-10 also say they have found it difficult to integrate digital tools into their agency. This latest Agency Forward survey* also revealed that while more consumers utilized technology during the pandemic, the agent/client relationship remains vital.

Nationwide’s research uncovered four key themes among consumers and the independent agents who serve them:

1. Agents and consumers find added value using digital tools
2. Agents have experienced some bumps in the road while implementing digital tools
3. Consumers are using digital tools throughout their insurance journey
4. Consumers still think having an insurance agent is important

“Agents want to work with carriers that can help them create a strong digital presence, enhance customer access, provide a better user experience, and assist in retaining customers,” said Beth Riczko, Nationwide’s president of P&C Personal Lines. “During the past year, Nationwide has worked to deploy technology that can help agents who need to sell and serve customers more effectively and has dedicated resources to help them implement and use those digital tools.”

Agents and consumers find added value using digital tools

• More than half of agents (53%) think a digital benefit is providing customers access to an agent 24/7; consumers agree (52%)
• 52% of agents think digital tools provide better customer service; 45% of consumers agree
• 51% of agents think digital tools help retain customers; 55% of consumers believe it provides them faster access to information

Agents have experienced some bumps in the road while implementing digital tools

• Agents see the benefits of digital tools for their agency and clients but, at the same time, 80% feel the digital integration has been a challenge.
  • The greatest challenge is the rising costs for 76% of agents, followed by having the resources to teach agents about the tools (72%), staying on top of and getting clients to use new technology (69%)

Consumers are using digital tools throughout their insurance journey

• Nearly half of consumers associate digital insurance capabilities with online tools or mobile apps that help with filing claims and reviewing policies (48%), compare insurance policies and costs (46%), and make the claims process much faster (46%).
• In fact, 45% of consumers say working with a carrier with strong digital capabilities increases their customer satisfaction.
• The data also show consumers are using digital tools throughout their insurance journey:
  • 48% of consumers have used a customer self-service website
  • 37% of consumers have used mobile apps for customer services and claims
  • 36% have used online mobile tools to quote and compare policies and price

“There are carriers out there that don’t have strong app capabilities, and my production force wants that as they’re trying to sell to clients and prospects,” explains Haith. “Just having options that you can give customers, they want to be able to work with you, the way they want, and if a carrier does not provide the digital capabilities, it is a detriment to them.”

Consumers still think having an insurance agent is important:

• 87% of consumers say an agent plays a critical role to the customer experience
• 88% of consumers still value being able to speak with an agent when they need one
• 57% of consumers prefer to have insurance agents located physically nearby — mostly for accessibility and trust

“While digital tools can make certain parts of the insurance experience easier, sometimes customers need to talk to someone to help them understand the nuances of insurance. That’s when an agent’s personal relationship with a customer can make a big difference,” added Riczko. “We invest in digital solutions that enable our agency partners to strike a balance between in-person support, when it’s needed, and empowering their customers to self-serve, when they choose.”

Agent takeaways:
Nationwide developed Nationwide Express, which helps agents quote multiline policies and complete sales in minutes. In addition, it released "conversational texting," a technology that allows their customers to connect directly to their claims representative from a smartphone. So again, the power is in the customers' hands by allowing them to reach out to their claims representatives from anywhere in the world. It's both technologically savvy and a thoughtful way to respect customers’ time. The contagious nature of COVID-19 also inspired Nationwide to accelerate and expand the use of virtual damage appraisals, using videos, photographs, and drones to assess and settle damages.

*These insights and more were uncovered through Nationwide’s ongoing Agency Forward (formerly Agent Authority) research series, which includes samples of independent insurance agents, various business owners, and consumers. Previous Agency Forward research reports can be viewed on Nationwide’s P&C research page.

Survey Methodology:
Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 400 independent insurance agents and 1,000 general consumers between February 5 – February 19 to help position agents and associates as credible and knowledgeable about complex consumer and industry-specific trends. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

Consumers agree that working with a trustworthy and accessible agent is a priority, but there are gaps agents can address to enhance these relationships.

Nationwide uncovered three themes in this study:

• What customers want: Consumers are looking for guidance and support from their agents, not just on insurance products.
• Shared challenges: Personal lines customers struggle to understand their policy. Agents feel a similar challenge when it comes to helping them bridge this knowledge gap.
• Economic outlook: Customers are looking for guidance as the economy creates uncertainty.

“Our most recent Agent Authority survey shows agents are bringing immense value to consumers, especially in times with so much uncertainty,” said Jeff Rommel, Senior Vice President of Property and Casualty Sales and Distribution at Nationwide. “Consumers are identifying new opportunities for agents to step up and strengthen relationships at a time when their personal lines clients are taking a closer look at their insurance needs.”

What Customers Want:

Customers want to know they have the right coverage and the right price. The research identified consumers and agents are aligned in prioritizing the qualities of a good agent, including being trustworthy, providing strong customer service and being cost-effective. However, customer needs don’t stop there.

• 44% of consumers are reviewing one or more of their insurance policies.
• 31% looked further into what their insurance policy covers.
• 26% checked with their agent to discuss coverage.
• 13% of consumers asked their agent to look at different carriers to find a better price or coverage.
• Consumers are looking to agents for more than just insurance. Some are looking for guidance on topics like retirement (26%) and cybersecurity (16%).
• Consumers are evenly split in their preference for a physical vs. digital experience with their agent. 51% prefer to have an agent where they’re located. 49% prefer to handle all insurance needs digitally.

Quick tips for agents:

• Staying up-to-date on industry trends and innovative technology like telematics can help you offer customers a solution to pay for insurance based on their personal driving habits – including how much and how safely they drive.
• The Nationwide Retirement Institute offers a wide range of retirement planning resources.
• Consider proactively offering products like identity theft insurance.
• Nationwide Express enables agents to complete sales in as little as two minutes, making it quick and easy to offer multi-line quoting, over the phone, through their web site or even through their mobile device.

Shared Challenges:

The research identified two consistent challenges across all consumers surveyed – understanding policy coverage and finding the best price. While most customers seek educational counsel on insurance types and coverages, they perceive that some agents could deliver more guidance.

• 45% of consumers say it’s a challenge to find the best price for their needs; 57% of agents say they struggle to maintain clients because of pricing.
• Nearly half (47%) of consumers said it is a challenge to understand what is and what is not covered in their policy.55% of agents are challenged to educate clients on the level of coverage they need; 52% of agents have difficulties helping customers understand the different types of coverages.

Quick tips for agents:

• Help your clients understand that price is only one of several important considerations when evaluating insurance. While sometimes there is a better price out there, it is important to weigh the financial commitment against the best protection option.
• Look to your carrier partners for tools to help you educate clients on key insurance topics.

Economic Outlook:

Consumers are nervous about the economy and say they will be reassessing their insurance needs as a result. Over half of agents think their clients feel uncomfortable talking about economic uncertainty. While not easy conversations to have, agents feel they are prepared and have the resources to discuss economic uncertainty with their clients. On the reverse side, consumers highlighted an opportunity for agents to demonstrate their knowledge to build trust.

• 47% of consumers indicate they have or will be reassessing their insurance needs because of economic uncertainty.
• 56% of consumers believe their agent is prepared to discuss economic uncertainty and 59% believe their agent has the resources to do this.

Quick tip for agents:

• Nationwide offers regular economic updates from the office of our Chief Economist to help agents have informed conversations about the future of the economy with their clients.

*These insights and more were uncovered through Nationwide’s ongoing Agent Authority research series, which includes samples of independent insurance agents, various business owners, and consumers. Previous Agent Authority research reports: Agent-customer relationship; Small business owner needs and challenges; Middle market business owner needs and challenges; Agents' top concerns through the pandemic.

Methodology:

Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,600 U.S. independent insurance agents, small business owners, mid-market business owners, mid-market business owners with fleet vehicles, African American business owners, Hispanic business owners and general consumers between June 9 – June 25 to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and find out the actions business owners and consumer have taken as a result of COVID-19 and the conversations they’re having with agents. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

Nationwide’s research uncovered four key themes for middle market business owners and commercial agents:

1. Business owners are confident in their agents and trust their advice.
2. Agents must offer a highly digital experience while delivering personalized guidance.
3. Business owners want to better understand what’s in their policies.
4. Concern is high for middle market business owners, and they’re taking protective measures.

“As business owners adapt to remain competitive, they need an agent they can trust to see around the corner and customize their protection needs,” said Linda Stueber, vice president of Nationwide’s Middle Market commercial team. “Now more than ever, it’s vital for agents to help business owners fully understand the coverage they have in place, adapt to new or changing risks, and be proactive in addressing those risks or gaps.”

Mutual Confidence
As compared to small business owners, middle market business owners have more complex insurance needs and in turn need an agent they can confidently rely on. Fortunately, most middle market business owners note that their agent is always available when they need them, able to offer the best price and regularly checks in on their needs. They also look to build a relationship with their agent over time and value an agent who can handle all of their insurance needs, not just property and casualty. Commercial agents echoed confidence in their abilities and services for clients.

• 95% of agents and 84% of middle market business owners agreed that insurance agents are always there when needed.
• 91% of agents said they can offer the best prices and 86% of middle market business owners agreed.
• 94% of agents responded that they’re regularly checking in with clients to make sure their policy fits their needs; 83% of middle market business owners agreed and nearly half (49%) have checked in with their agent due to Coronavirus.
• 93% of agents and 89% of middle market business owners agree insurance agents have a vast knowledge of different types of industries and protection solutions.

Quick tips for agents:

• Look for new opportunities to initiate touch points with clients.
• As business owners seek education about their risk management, consider pointing them to My Loss Control Services which offers digital safety resources, virtual consultations and more for business owners looking for quick technical advice.
• Help clients understand the importance of finding the right price, not the lowest.

What Middle Market Business Owners Want
The Agent Authority research shows these business owners look for insurance agents who are trustworthy, bear a strong reputation and who know and understand their unique needs. They also prefer strong, stable and well-established carriers to protect against their complex risks.

• 92% of middle market business owners place importance on using a company that has strength and stability, and 86% value working with a well-established and well-known carrier.
• While 81% feel it’s important to work with an insurance agent with a local office close by, they also value digital experiences; 51% said they prefer to handle their insurance needs digitally, highlighting a need to offer both digital and personal interactions.
• 89% want an agent who can handle all of their insurance needs.
• 90% value working with an insurance agent who personalizes coverage to fit their needs.
• Middle market business owners are also looking to their agents for more guidance on topics outside of traditional insurance.

• 57% of middle market business owners are seeking information on employee benefits.
• 46% are interested in guidance on business interruption or disaster planning.
• 45% want safety and loss control resources.
• 37% are interested in retirement, succession planning and cybersecurity.

Quick tips for agents:

• Work with carriers who help you reach customers with digital capabilities and deliver a breadth of expertise and solutions to meet their needs.
• Stay up-to-date on industry needs, trends and emerging risks to be agile for clients and demonstrate you’re prepared for anything.
  • The Commercial Insight Center offers quick, specialized and actionable information to assist agents as they protect clients.

Shared Challenges:
Middle market business owners have a lot to consider when shopping for insurance, and in turn, typically face significantly more challenges in the process than small business owners. Their top struggles include understanding the extent of their coverage, differentiating between types of coverages and finding the best price for their needs. Commercial agents shared obstacles too, such as understanding nuances between different industries and helping clients with disaster preparation.

• 71% of middle market business owners are challenged with understanding what is and what is not covered in their policy.
• 69% struggle with finding the best price for their protection needs.
• 69% have difficulties understanding different types of coverage and the length of time it takes to settle a claim.
• More than half of agents struggle with understanding the nuances between different industries (53%), educating clients about different types of coverage (52%) and helping clients with disaster preparation or mitigation (51%).

Quick tip for agents:

• Work with clients to walk through scenarios to help them understand how proactive planning and loss control can help fill potential gaps and keep them running smoothly if the unexpected should occur.

Economic Outlook:
Compared to small business owners, middle market business owners are much more concerned about their businesses surviving today’s economic turbulence. Despite that, many are still uncomfortable talking about economic challenges with their insurance agent even though they largely feel their agent is prepared for the conversations.

• Nearly 7 in 10 middle market business owners (69%) responded that they’re too concerned about the future of their business to be concerned with their insurance right now.
• However, about half (49%) have checked in with their insurance agent to discuss their coverage due to the Coronavirus, and 77% have reassessed or will be reassessing their insurance needs.
• 78% of middle market business owners are unsure how the economy will impact their insurance coverage needs compared to 55% with small business owners.
• 63% of middle market business owners think talking about economic uncertainty with their agent is uncomfortable, but 84% believe their agent is prepared to have the conversations.

Quick tips for agents:

• Many middle market business owners aren’t thinking about insurance right now, but agents should be thinking about it for them. Consider new and different risks your clients may be facing, like cyberattacks as employees work remotely, or innovative technologies like telematics to help them operate more efficiently and safely.
• Don’t be afraid to have difficult conversations about the economy with your clients. Most middle market business owners are uncertain how the economy will impact their insurance needs, but it’s a topic they should be thinking about.

*These insights and more were uncovered through Nationwide’s ongoing Agent Authority research series, which includes samples of independent insurance agents, various business owners, and consumers. Previous Agent Authority research reports: Agent-customer relationship; Small business owner needs and challenges; Agents' top concerns through the pandemic.

Survey Methodology:
Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,600 U.S. independent insurance agents, small business owners, mid-market business owners, mid-market business owners with fleet vehicles, African American business owners, Hispanic business owners and general consumers between June 9 – June 25 to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and find out the actions business owners and consumer have taken as a result of COVID-19 and the conversations they’re having with agents. For the purposes of this survey, middle market business owner was defined as anyone who self-reported as being a sole or part owner of a company with either 51-500 employees or $10M-$500M in revenue or 20+ fleet vehicles. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

According to the survey, more than half of independent agents (57%) said that their clients are too concerned about their business surviving the pandemic to talk to their agent about insurance needs. However, 6 in 10 small business owners disagreed; they want to hear from their agent.

Nationwide’s study uncovered four key themes for small business owners and commercial agents:

1. Business owners would like more attention from their insurance agents.
2. Business owners want personalized policies that fit their unique business needs.
3. Business owners would appreciate assistance in better understanding what’s in their policies.
4. Economic guidance is welcome.

“Small businesses and the independent agents who help protect them continue to face unprecedented and evolving business adversity,” said Cathy Allocco, vice president of Small Commercial Sales and Distribution at Nationwide. “The best agents will ensure clients continue to feel their presence, even virtually, by identifying new ways to strengthen relationships, solve problems and offer peace of mind to clients whose expectations for expertise are on the rise.”

Out of Sync

The Agent Authority research revealed small business owners feel there are opportunities for agents to better support their needs. Small business owners were less likely than middle market business owners to agree that their agent is always available when they need them, able to offer the best prices or regularly check in on their needs. While agents believe they’re meeting the needs of their small business clients, it appears business owners are looking for more support.

• 95% of insurance agents reported they’re always there when customers need them, but 1 in 4 small business owners disagree (25%).
• 91% of agents said they can offer the best prices, but 31% of small business owners disagree.
• 94% of agents responded that they regularly check to make sure policies fit their clients’ needs, yet 36% of small business customers disagree.

Quick tip for agents:

• As small businesses continue to navigate change, identify ways to regularly check in with your commercial customers to understand their needs, ensure they’re appropriately protected and assess whether you can add value through technical expertise or solutions like telematics.
• Leverage digital marketing and social media to reach your customers where they are and elevate your thought leadership profile.

What Small Business Owners Want

While small business customers and agents agree it’s important for an insurance agent to be trustworthy and cost effective, the data shows a small business owner places more importance on having an agent who knows and understands their needs.

• Nearly 7 in 10 small business owners prefer to work with an agent located physically near them highlighting the value a local agent brings; 32% prefer to handle all insurance needs digitally.

• Business owners ranked “being able to talk live to a person when you have an important issue or question” as the fourth most important attribute when buying or renewing an insurance policy.

Resource-limited business owners are also seeking guidance on topics beyond traditional insurance, such as disaster planning, loss control, retirement and cybersecurity. Additionally, a carrier’s financial strength and stability is more important to business owners than agents may realize when buying or renewing a policy.

• 39% of small business owners are seeking guidance on business interruption or disaster planning.
• 35% of small business owners are interested in safety and loss control resources to mitigate risks.
• 18% of small business customers want information on cybersecurity and retirement.
• Customers prioritize carrier financial strength and stability and name recognition when shopping for insurance; 91% of small business owners place importance on using a company that has strength and stability, and 82% value working with a well-established and well-known carrier.

Quick tip for agents:

• The Business Solutions Center offers insurance and business guidance and resources to help small business owners protect and grow their businesses.
• Ask your carrier partners for resources to talk to your customers about disaster and business continuity planning, safety and loss control, and products that could present cross-selling opportunities like cybersecurity, employee benefits and retirement solutions.
• Nationwide’s My Loss Control Services provides a variety of loss control resources and solutions.

Shared Challenges:

The research shows that small business owners are still struggling with understanding their insurance policy, and they appreciate an agent’s assurance that they have the right insurance coverage and protection for their needs. Similarly, many agents grapple with understanding nuances between different industries and educating clients about the level of coverage they need Similarly, many agents struggle educating customers on the coverage needs for their unique businesses.

• 85% of small business owners agree insurance agents provide assurance that they have the right coverage and protection.

• Understanding what is and what is not covered in their policy (46%), finding the best price for their protection needs (44%) and understanding the level of coverage needed (43%) are small business owners’ top insurance challenges.

• 55% of agents say they struggle educating customers on the coverage they need and 46% of agents say providing the level of service customers demand is a challenge.

Many small business owners also wrestle with understanding different types of coverage, the time it takes to settle a claim and keeping up with new technology offered by the insurance industry.

Agents also reported challenges with adopting new industry technology, educating clients about different types of coverage, and helping clients with disaster preparation or mitigation.

Quick tips for agents:

• Continue to elevate your expertise within the industries you serve and educate your customers on how COVID-19 may impact their business.
• As you proactively reach out to customers, offer to discuss generally how their policy coverages apply and to help them understand potential gaps they may need to fill with business continuity planning, loss control and other measures.
• Nationwide’s Agent Blog offers information on insurance market trends and resources for reaching more customers through digital and social media.

An Economic Outlook:

Six in 10 small business owners feel the economy will be the same or worse in the next 12 months and many are taking steps to reassess their insurance needs.

• 55% of small business owners are unsure of how the economy will impact their insurance coverage needs
• 53% of small business owners are concerned about their business making it through the economic downturn
• However, 82% of small business owners are taking measures to protect their business’ assets
• 54% have reassessed or will be reassessing their insurance needs because of the economic uncertainty
• 33% have created a business plan to address the economic impact from the Coronavirus

Many small business owners are ready and willing to have these difficult conversations. However, 4 in 10 small business owners are not sure whether their agent is ready to discuss economic challenges.

• 36% of small business owners felt having these economic uncertainty conversations with their agent is uncomfortable; 55% of commercial agents feel their clients are uncomfortable talking about the economic uncertainty.
• 57% of small business clients thought their agent was prepared to discuss economic uncertainty compared to 75% of total business owners.

Quick tips for agents:

• Ensure you have the training and resources to talk about the recession and economic conditions with your customers and offer potential solutions to help them.
• Nationwide provides regular economic updates from the office of our Chief Economist to help agents have more informed conversations about the economy with customers.

*These and other important insights came out of the summer survey of the Agent Authority research series conducted by Nationwide, which includes samples of independent insurance agents, small business and mid-market business owners, and consumers. Nationwide also recently shared Agent Authority survey data on the agent-customer relationship and agents’ top concerns through the pandemic.

Survey Methodology:

Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,600 U.S. independent insurance agents, small business owners, mid-market business owners, mid-market business owners with fleet vehicles, African American business owners, Hispanic business owners and general consumers between June 9 – June 25 to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and find out the actions business owners and consumer have taken as a result of COVID-19 and the conversations they’re having with agents. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

Nationwide uncovered four themes in this study:

• A perception gap: There are gaps between agents and customers when it comes to perception of service levels.
• Customers want more than just property and casualty support from agents.
• Understanding policy coverage and price are shared challenges across all audiences.
• The economy is a concern, and customers are looking to agents for guidance.

“Our latest research shows some emerging opportunities in the agent-customer relationship particularly when navigating this current environment and economy,” said Jeff Rommel, Senior Vice President of Property and Casualty Sales at Nationwide. “But while the data pinpointed gaps, agile agents will see ways to address their clients’ concerns, enhance retention and grow their business.”

These and other important insights came out of the summer survey of the Agent Authority research series conducted by Nationwide, which includes samples of independent insurance agents, consumers and business owners. The research was developed to uncover unique challenges property and casualty agents encounter and create subsequent guidance.

A Perception Gap

The Agent Authority research identified a perception gap in the value agents believe they are bringing to their customers. Agents are confident they are meeting the needs of their customers, yet some business owners and consumers have a different perspective on the services agents should provide. In areas where agents gave themselves higher marks than consumers and business owners, agents can lean in and proactively close gaps, effectively strengthening their relationships and improving their brand.

• 95% of insurance agents believe they are always there when their clients need them but only 79% of customers felt the same.
• While 91% of agents said they can offer the best prices, only 74% of customers agreed.
• 94% of agents reported they are regularly checking in with their customers to make sure their policy fits their needs. However, only 69% of customers reported sufficient check-ins from their agent.

Quick tip for agents:

• Set up regular calendar reminders to check in with your top commercial lines clients every six months to understand the challenges their business is facing and evaluate evolving insurance needs. Reach out to all personal lines customers at least once a year to do the same.

What Customers Want:

To support agents in closing this perception gap, the research identified areas where agents can go above and beyond traditional insurance guidance. While most customers seek counsel on conventional insurance, some business owners are looking for help on succession planning, disaster recovery and employee benefits. Additionally, general property and casualty customers are asking agents about retirement and banking advice.

• 57% of mid-market business owners are asking about employee benefits.
• 45% of mid-market business owners and 35% of small business owners are asking about safety and loss control.
• 26% of consumer customers want guidance on retirement planning.
• Physical location is something customers value. While there is a desire for digital platforms –Small business owners (68%), and consumers (51%) still prefer to have an insurance agent where they are physically located.

Quick tips for agents:

• Ask your carrier partners for tools to talk to your clients about employee benefits, loss control, retirement planning.
• Nationwide’s My Loss Control Services provides a variety of loss control resources.
• The Nationwide Retirement Institute offers a wide range or retirement planning resources.
• Adjust your social media marketing efforts to reflect more than what you sell. It should reflect you and the hometown community you support. Nationwide’s Hearsay program helps independent agents reach clients via social media in new and innovative ways.

A Shared Challenge:

The research identified two consistent challenges across all audiences surveyed – understanding policy coverage and finding the best price.

• 46% of small business owners, 71% of mid-market business owners and 47% of consumers said it is a challenge to understand what is and what is not covered in their policy.
• 44% of small business owners, 69% of mid-market business owners and 45% of consumers said it is a challenge to find the best price for protection needs.
• Similarly, 55% of agents say they struggle educating clients on the coverage they need and 46% of agents say providing the level of service customers demand is a challenge.

Many customers also wrestle with understanding different types of coverage, the time it takes to settle a claim, insurance terminology and understanding how much coverage they need.

Agents reported it particularly challenging to:

• Adopt new technology to keep up with the industry (55%)
• Understand the nuances between different industries (53%)
• Help clients with disaster prep or mitigation practices (51%)

Quick tips for agents:

• When you touch base with clients, brainstorm insurance scenarios together to identify potential gaps and where business continuity and disaster planning may help.
• Help your clients understand that price is only one of several important considerations when evaluating insurance. While sometimes there is a better price out there, it is important to weigh the financial commitment against the best protection option.
• Look to your carrier partners to share technical expertise and resources to help you advocate for your clients and provide safety resources that mitigate their risks.
• Nationwide’s Commercial Insight Center offers quick, specialized and actionable information to help elevate agents’ expertise and success with mid-market businesses.

An Economic Outlook:

Over half of agents think their clients feel uncomfortable talking about economic uncertainty. However, more than half of business owners and consumers feel like their agent was prepared to have these discussions.

• 47% of agents are optimistic the economy will recover in the next year but 66% are concerned about making it through this economic climate.
• 81% of agents say their customers are unsure how the current economy will impact their business and their insurance needs.

Quick tips for agents:

• Nationwide offers regular economic updates from the office of our chief economist to help agents have informed conversations about the future of the economy.
• Some personal lines clients may be able to reduce auto insurance cost with a telematics policy. Discuss whether a safety-based or pay-by-mile telematics solution is the best option.
• Agents can also deliver bottom line impacts and operational insights to commercial clients with telematics and fleet management solutions. Discuss whether your clients’ businesses would benefit from leveraging its vehicle data.

Methodology:

Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,600 U.S. independent insurance agents, small business owners, mid-market business owners, mid-market business owners with fleet vehicles, African American business owners, Hispanic business owners and general consumers between June 9 – June 25 to understand what business owners and consumers value when buying or renewing insurance policies, explore the different challenges each audience faces around insurance, gauge perceptions of the economy and how each audience is managing uncertainty, and find out the actions business owners and consumer have taken as a result of COVID-19 and the conversations they’re having with agents. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.

“COVID-19 has dynamically changed the way industries across the globe operate,” said Jeff Rommel, Senior Vice President, P&C Sales and Distribution for Nationwide. “In addition to the challenges independent agents face in their new work environments, they’re adjusting to shifting customer needs, growing their businesses and providing competent counsel amidst continued uncertainty. Our goal is to identify ways that we can continue meeting the needs of independent agents and equip them with the right tools to serve their clients and their business in this new normal.”

These and other important insights came out of the first of a series of Agent Authority research conducted by Nationwide. The Agent Authority research series was conceived by Nationwide to pinpoint challenges property and casualty independent agents encounter and develop subsequent guidance. The findings identified three key themes:

• Portfolio and business concerns

• Reliance on stability of large carriers

• Desire to help clients navigate unprecedented challenge

Growth and Business Concerns 

Agents are concerned about driving new business and retention to keep their agency strong for the future.

• Agents say that their biggest challenges are driving new business to keep their agency strong for the future (69%) and maintaining their portfolio of clients due to the economic impact of COVID-19 (62%).

• 90% of all agents report that they are concerned about the time it could take for the U.S. economy to recover.

• 60% of agents are challenged to shift their agency’s marketing to a heavier digital-based approach.

• Agents have personally been affected as 63% claim that the economic impact from COVID-19 will likely impact their ability to retire at the age they had originally planned.

Agents Look to Larger Carriers for Stability 

Agents are more likely to migrate to the strength and stability of larger carriers.

• More than two-thirds of all agents (72%) report that they are more likely to use large insurance carriers for their customers’ needs due to concerns about the financial instability of smaller carriers.

• Agents 18-39 (76%) and agents 40-54 (77%) shared an even stronger inclination to use large carriers, compared to agents 55 and older (53%).

Helping Clients Navigate Policies Amidst Challenges

Agents are adding value by helping clients understand and adjust their coverage.

• 58% of agents report they have had a client come to them for suspending payments, 58% have been asked for advice on cutting costs, and 56% had requests to help clients better understand what their policy covers.

• COVID-19 has brought on new challenges as almost 6 in 10 agents report working with their clients to educate them on the impact Coronavirus has on their insurance coverage.

The survey also found:

• When it comes to operating in the new COVID-19 work environment, agents feel prepared and are finding opportunities to succeed in this new way of working with 83% of agents indicating that they have the proper devices and technology needed to work from home and the proper channels in place to effectively communicate with their insurance carriers.

• Through it all, 80% of agents say they’ve had to change the way in which they sell or market to clients because of COVID-19.

• 82% of agents say they have the ability to provide customers with online self-service tools and resources they need to manage their accounts.

“As we continue to develop additional research and guidance, we want independent agents to know that they have a partner in this crisis and Nationwide will put our resources and relationships to work for them as we navigate this environment together,” added Rommel.

A Path Forward

Nationwide will continue to apply these findings to seek new avenues to support independent agents. In the short-term, Nationwide is focused on the following offerings to support agents and help them meet changing consumer and business needs.

• Expanding digital marketing and social media support and training to help agents grow and maintain their portfolio.

• Extending payment terms for members experiencing hardship.

• Enabling agents to amend policy coverage to extend to new business situations (e.g. restaurant delivery).

• Helping agents and businesses protect themselves from a cyberattack during the pandemic

• Promoting Nationwide Express so agents can readily deliver multi-line quotes in two minutes.

• Advocating for personal and commercial telematics products to address changing driving patterns and the increased prevalence of work from home environments.

• Distributing timely loss control resources for agents to share with clients to help them manage risks as operations and exposures evolve.

Methodology 

Nationwide commissioned Edelman Intelligence to conduct a 10-question quantitative online survey among a sample of 400 U.S. independent insurance agents between April 10 – 22 to provide an understanding of their experiences as a result of COVID-19 and the impact on their business. The margin of error for this sample was +/-4.9% at the 95% confidence level. As a member of CASRO in good standing, Edelman Intelligence conducts all research in accordance with Market Research Standards and Guidelines.