Seven in 10 SMEs not considering fundamentals when renewing insurance

Seven in 10 SMEs not considering fundamentals when renewing insurance | Insurance Business New Zealand

SME

Seven in 10 SMEs not considering fundamentals when renewing insurance

New research from Vero aims to equip brokers with insights from small enterprises

Around 70% of SMEs are neglecting key factors when it comes to insurance renewals, research from Vero New Zealand has found.

The insurer’s findings from its Vero SME Insurance Index 2023 underscores the pivotal role brokers can play in providing value to small businesses across Aotearoa. The goal is to arm brokers and advisers with a deeper understanding of the viewpoints and behaviours of business decision-makers when it comes to their insurance coverage.

Vero acting chief customer officer Paul Gallop – who has recently entered the role – said that comprehending the true needs of small businesses can empower brokers and advisers to more effectively address the intricate and diverse requirements of businesses throughout New Zealand.

Renewal trends, coverage adequacy

Vero’s research also revealed that SMEs whose brokers participated in their most recent renewal tend to report higher levels of satisfaction. Notably, 86% of businesses expressed the desire for their brokers to stay updated on any changes within their operations that could impact their insurance coverage. This is where SMEs see substantial value added by brokers.

The research also unveiled that approximately 57% of the over 750 businesses surveyed believe they are largely covered for the risks they face. Interestingly, businesses that engaged their brokers in the renewal process are more inclined to view themselves as entirely covered.

In the past year, it was found that nearly half of the surveyed businesses have implemented operational changes. However, the research also revealed that over one in three businesses failed to take these changes into account when renewing their insurance.

Gallop said that brokers should actively engage with their customers’ businesses. Understanding the evolving insurance needs and effectively addressing changes can significantly strengthen the broker-customer relationship and contribute to heightened customer satisfaction levels.

“In these uncertain times, the value and importance of broker advice to SME customers have never been more significant,” Gallop said.

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