Broker service and expertise is a winning combination with SMEs
SME service expectations have changed
It’s become clear that service from brokers has become just as important for clients as expertise. With the recent launch of the 2021 Vero SME Insurance Index Report, there have been many insights into what SMEs are looking for from their insurance broker.
For a long time, expertise was the most common reason to work with a broker (50% in 2015). However, over the last few years, that statistic has decreased to 40%, with SMEs now siting “providing great service” as the number one reason to work with a broker.
So how can brokers effectively demonstrate their expertise through good service?
SMEs have made it clear that they want to hear more about the insights, analysis and process that goes into their advice. They want someone that knows their business and can provide value throughout the lifecycle of the relationship, not just in terms of insurance advice, but also in regard to risk advice and claims.
In regards to providing the right service for SMEs, Sarah Lyons Chief Executive of Gallagher Australia said “The expectation of the client is that they are looked after throughout the lifecycle of the policy. We need to make sure that we can marry up with how they want to be serviced”.
The report also establishes a growing number of SMEs are seeking insurance advice from family, friends and peers instead of from professionals.
“I get advice about insurance from others in my industry. They’re in the same field, they understand what we do, so I find it the most relevant”. Builder, Broker Client, 2015
This is an opportunity for brokers to show their clients the value of their service by keeping them informed during the insurance decision process, as well as showing their expertise by providing them with advice about regulatory or industry changes. Brokers, and the insurance industry in general need to educate SMEs on the complexities of insurance and the need to get professional advice, rather than taking a “DIY” approach to it or relying on informal advice from personal networks that might be incorrect, or potentially harmful.
“Our legal insurance was an expensive policy and by not using a broker, that insurance was basically null and void. So if we were to go down that road again, we would definitely use a broker”. – Pamela Recruiter. Hear what other SMEs are looking for from their brokers in the short video below.
Download the report to see the full findings for 2021 and what they mean for brokers.
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Source: The SME Insurance Index report research was conducted by BrandMatters. See www.brandmatters.com.au
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