Small and medium enterprises (SMEs) are the backbone of the global economy, representing 99% of all businesses and driving innovation across every sector. Yet, when it comes to insurance, SMEs remain critically underserved. The market is vast—an $11 billion opportunity in the UK alone—but traditional insurers have struggled to keep pace with the evolving needs, digital expectations, and risk profiles of modern SMEs. As digital-native competitors and insurtechs redefine the landscape, the future of SME insurance will be shaped by those who embrace digital-first, data-driven, and customer-centric strategies.
Despite their economic importance, SMEs face a persistent protection gap. Over 80% of high-growth SMEs are underinsured or have the wrong coverage, and nearly a third lack a Standard Industrial Classification (SIC) code that accurately reflects their business activities. The reasons are multifaceted:
The SME insurance market is being disrupted by digital-first players and insurtechs who are:
These new entrants are capturing market share by offering what SMEs want: simplicity, transparency, and value-added services that go beyond traditional coverage.
To capture growth in this underpenetrated segment, insurers must reimagine their approach across several key dimensions:
Meet SMEs and brokers where they are—whether that’s digital self-service, embedded within partner platforms, or through traditional intermediated channels. The ability to shift seamlessly between channels based on customer needs is essential.
Move beyond generic products. Use data and digital tools to offer tailored coverages and recommendations (e.g., “builders like you typically take out these variants of tools insurance”), demonstrating a deep understanding of each SME’s business.
Automate by design. Digitize and triage inbound requests, using AI to handle straightforward cases and route complex risks to underwriters. This reduces manual effort, speeds up service, and frees up experts for high-value work.
Standardize and integrate risk management solutions directly into SME workflows. Embedded insurance not only closes the protection gap but also creates new revenue streams and touchpoints for engagement.
Put data at the core. Expand data sources—internal and third-party—to inform risk selection, pricing, and product development. Real-time integration of SME data, telematics, and location analytics enables more accurate, dynamic underwriting.
Build operational and trading engines that continuously refine offerings, expand into new trade segments, and increase automation. Use data feedback loops to drive ongoing improvement in pricing, risk selection, and customer experience.
Modernizing SME insurance is not just about technology—it’s about orchestrating change across strategy, product, experience, engineering, and data. Publicis Sapient’s SPEED framework provides a proven, holistic approach:
Our approach is iterative and low-risk, focusing on rapid proofs-of-concept and incremental migration from legacy to modern platforms. We help insurers:
Publicis Sapient’s proprietary AI platform, Sapient Slingshot, accelerates the software development lifecycle for insurers. By combining expert-crafted prompt libraries, hierarchical context awareness, and intelligent agent workflows, Slingshot enables:
This means insurers can deliver new SME insurance solutions in weeks, not years—reducing costs, increasing agility, and unlocking new value at every stage.
Through partnerships with leading technology providers and a relentless focus on customer-centricity, Publicis Sapient has helped SME insurers:
The future of SME insurance belongs to those who embrace digital-first, data-driven, and customer-centric transformation. By modernizing core systems, personalizing engagement, and embedding risk solutions into the fabric of SME business, insurers can close the protection gap, capture new growth, and build resilient, future-ready businesses.
Publicis Sapient stands ready to help you define your strategy, build proofs-of-concept, and deliver scalable, modern SME insurance solutions—powered by our SPEED capabilities and industry-leading technology platforms. Connect with us to start your journey and lead the next era of SME insurance.