The world of work is changing rapidly, with the digital revolution and the onslaught of the pandemic changing mindsets and introducing much greater flexibility in the way we organize our working lives.
In the two years since the pandemic, those who could work from home. Some are now returning to the office for the first time, and many will thankfully never set foot in a physical workplace again.
Of the many interrelated labor trends currently being observed – from the great resignation to the intense competition for talent – one that has arguably fallen under the radar of the insurance industry for too long is the growth of new businesses created and managed. home.
The disruption of the past two years has been an eye opener to show what is possible when it comes to the way we work. It’s no coincidence that the home-based business sector is booming, driven by entrepreneurs, many of whom have turned their backs on corporate America to become their own bosses.
The insurance industry’s role as risk experts is to understand the impact of these major social and economic changes on customers and to respond with products and services they may not know are available. ‘they need.
Incredibly, there are approximately 15 million home-based businesses in the United States. Think of any industry, and more than likely there will already be home-based businesses doing their part in it.
This growing part of the economy is underserved by existing insurance policies. Therefore, there is a need to create solutions to meet the specific needs of home business owners. These are not brick-and-mortar businesses; they need something different from the products created for traditional small businesses.
An AXIS Insurance survey of 1,000 home-based business owners across the United States (as of Q4 2021) provided insight into the rich diversity and reach of home-based businesses. Almost two-thirds (64%) of owners were women.
The survey results showed what kinds of businesses women were setting up – revealing an incredibly diverse range of sectors, from fitness and marketing to IT and tutoring. The main sectors operated by women home-based business owners were e-commerce, home-based crafts and professional services (including consulting). Each of these women had an idea and turned it into a reality, whether it was trying something completely new or turning a side hustle into a career.
Home-based businesses have been around for a long time, but there has been a real boom in recent years. With more time spent at home during the pandemic, what has been a real upheaval in our lives was also for many an enlightening moment that prompted them to reevaluate the way they were organizing their lives. For some women, this meant leaving traditional corporate jobs and becoming self-employed. In fact, 42% of women started their own business to pursue a passion and opportunity they might not have felt before.
Starting a home business takes courage, but what drives the owner is passion and a determination to succeed.
The second biggest motivation, at 36%, was to be their own boss, with 34% of respondents saying they went into business to achieve greater financial freedom.
Running your own business can be empowering, and it’s a big motivator for the women surveyed.
The most important quality identified for owning a home business was passion, which provides the strength and energy to stay positive and ultimately succeed. The second most important quality was entrepreneurship. Ambition comes third and the desire to succeed. All of them help these women to appropriate it in their own way.
Finding out how driven and ambitious these women are to embark on a new adventure was inspiring – 44% said they were happy with the decision to start a business.
There is a clear opportunity for the insurance industry to support these home-based businesses and provide them with high-quality products that protect them and help them achieve their ambitions.
Of all survey respondents, 91% know they need insurance for their home business, but around 44% don’t, finding the whole experience of getting the right one insurance hard to live with.
With this gap between demand and supply, there is a chance for the insurance industry to step up and support this dynamic sector by designing, distributing and clearly explaining the insurance solutions these businesses need. .
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