The Hanover Insurance Group, one of the largest property/casualty insurers in the U.S., has released the results of a new study. The study shows that small business owners have more trust for independent insurance agents than financial institutions that also offer insurance coverage. The study is part of an attempt by Hanover to understand how changes to the insurance industry and the business world are affecting small businesses. The results of the study will likely be used by Hanover to build new insurance products targeting small businesses.
Trust is becoming an increasingly important virtue in the financial services industry. The 2008 recession, as well as the lingering problems spurred by the crisis, has lead many people to distrust banks, insurance companies and other such groups. With the economic environment showing only modest signs of improvement, trust is quickly becoming one of the driving factors determining how small business owners pick their insurance policies. According to the study, 86% of small business owners in the U.S. rank trust as the most important factor when considering their insurance options.
Hanover is likely to use the results of the study to build new insurance policies targeting small businesses. These policies will be sold by independent agents in accordance with the results of the study. Hanover hopes to build a better rapport with small businesses and will try to recover some of the trust the insurance industry has lost since the 2008 recession.