EPISODE · Apr 5, 2023 · 54 MIN
Tim Lovett & Jeff Shi: Solving for small commercials
from Scouting for Growth · host Sabine VdL
It’s not easy for small and medium-sized businesses to find the right protection, even though many more small business opportunities have emerged since the pandemic. Today, Sabine taps into the knowledge of two industry veterans: Jeff Shi of InsurTech Groups and Tim Lovett, formerly at The Hartford, now at Three Insurance, and asks them to understand the current situation with small commercials in the US market. KEY TAKEAWAYS The size of the small- and medium-sized enterprise (SME) market varies widely by region and industry. Globally, SMEs account for a significant share of the economy, employ a large share of the workforce, and generate substantial economic activity. Estimates suggest that SMEs make up over 90% of businesses in many countries and are often considered the backbone of the economy. However, due to their diversity and dispersed nature, it can be challenging to estimate the exact size of the SME market. Insurers may have pulled back from small commercial coverage over the past two years for various reasons, including changes in regulations, declining profitability, and increased competition, as well as new regulations on data and ethics. The small commercial lines market can present several challenges for insurers, including higher risk, increased competition, complex coverage, limited data availability, and pricing pressures. These challenges can make it difficult for insurers to operate effectively in the small commercial lines market, leading some companies to pull back from this segment. However, despite these challenges, there is still significant demand for insurance coverage among small businesses, and many insurers are finding ways to overcome these challenges and offer competitive products. The products, services, and business opportunities that insurers evaluate today within the small commercial insurance market include technology-enabled solutions, specialized coverage, customized products, bundled products, alternative distribution channels, and risk management services. These products, services, and business opportunities aim to improve the customer experience, increase profitability, and differentiate from the competition in the small commercial insurance market. However, insurers must carefully evaluate each opportunity's viability and potential, as success will depend on factors such as market demand, competition, and the overall regulatory environment. BEST MOMENTS ‘Small businesses often face a higher level of risk than larger businesses, and insurers may have decided that the risk associated with insuring small businesses was too high.' ‘Small businesses often face a higher level of risk than larger businesses, making it more difficult for insurers to assess and price risk accurately.’ ‘Small business owners are often price-sensitive, and insurers may face pressure to offer competitive pricing, which can impact profitability.’ ‘Insurers are exploring alternative distribution channels, such as insurtech start-ups, to reach small businesses and offer more convenient and accessible insurance solutions.’ ABOUT THE GUEST Jeff Shi is the founder of InsurTech Groups, where he connects consumers with top industry partners by leveraging advanced processes and innovative technology. Jeff helps consumers better understand their policies to meet their unique needs. Website: https://www.insurtechgroups.com/ Tim Lovett was at The Hartford Insurance Group when recording this podcast for six years. Tim helps small and medium-sized companies make better choices. He has a background in claims management and distribution, which enables him to educate and assist agents in growing their small commercial portfolios. Website: https://ir.thehartford.com/ ABOUT THE HOST Sabine VanderLinden is a corporate strategist turned entrepreneur and the CEO of Alchemy Crew Ventures. She leads venture-client labs that help Fortune 500 companies adopt and scale cutting-edge technologies from global tech ventures. A builder of accelerators, investor, and co-editor of the bestseller The INSURTECH Book, Sabine is known for asking the uncomfortable questions—about AI governance, risk, and trust. On Scouting for Growth, she decodes how real growth happens—where capital, collaboration, and courage meet. If this episode sparked your thinking, follow Sabine VanderLinden on LinkedIn, Twitter, and Instagram for more insights. And if you’re interested in sponsoring the podcast, reach out to the team at [email protected]
What this episode covers
Small businesses are the backbone of the economy — yet when it comes to insurance, they’re often treated like an afterthought. In this episode of the Scouting for Growth Podcast, Sabine VanderLinden tackles one of the most pressing — and misunderstood — challenges in U.S. insurance today: why small and medium-sized businesses still struggle to access the protection they desperately need, despite the explosion of entrepreneurship since the pandemic. To unpack this paradox, Sabine is joined by two seasoned industry leaders who know the small commercial market from the inside out: Jeff Shi, founder of InsurTech Groups, and Tim Lovett, formerly of The Hartford and now at Three Insurance. Together, they cut through the noise to explain what’s really happening in small commercial insurance — and why this segment represents both a risk and a remarkable growth opportunity. The numbers alone should command attention. SMEs represent over 90% of businesses in many economies, employ the majority of the global workforce, and generate a substantial share of economic output. Yet their diversity, fragmentation, and varying risk profiles make them notoriously difficult to serve. Over the past two years, many insurers have pulled back from small commercial lines, driven by regulatory pressure, rising loss ratios, pricing constraints, data limitations, and heightened competition. But this retreat has created a widening protection gap — and that gap is where innovation now has to step in. Jeff and Tim explain why small businesses often carry disproportionately higher risk, why pricing accuracy remains a challenge, and why traditional underwriting models struggle to scale efficiently across this segment. At the same time, demand has not disappeared. If anything, it has intensified as new businesses emerge in a post-pandemic economy defined by flexibility, digital-first models, and rapidly changing risk exposures. The conversation quickly shifts from why insurers pulled back to how forward-looking players are moving back in — differently. You’ll hear how insurers are evaluating technology-enabled underwriting, specialized and customized coverage, bundled products, and alternative distribution models, often in partnership with InsurTechs. Risk management services, smarter data usage, and more intuitive customer experiences are no longer “nice to have” — they are essential to profitability and relevance in the small commercial market. This episode makes one thing abundantly clear: small commercial insurance isn’t broken — it’s being redesigned. Success will belong to insurers and ecosystem partners who can balance risk discipline with empathy, scale with personalization, and regulation with innovation. This is a must-listen for: Insurance leaders reassessing their small commercial strategy Brokers and agents navigating shifting carrier appetites InsurTech founders targeting SME pain points Investors seeking resilient, underserved growth segments Because the real question isn’t whether small businesses need better protection. It’s who will step up — and build it intelligently, sustainably, and at scale.
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Tim Lovett & Jeff Shi: Solving for small commercials
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