Industry and business changes review insurance on a regular basis
Industry folklore suggests that insurance is a grudge purchase for many SMEs: important to get right, but something they avoid thinking about.
But how often do SMEs really think about their insurance? And more specifically, what prompts them to review their insurance policies and arrangements? This year we wanted to understand how often SMEs really think about their insurance and why.
There are several typical triggers to reviewing insurance, and while brokers no doubt witness these behaviours in their clients, for the first time we have asked SMEs about their specific triggers to get a quantified view.
- Standard review: 59% claim to have some sort of standard review in place, whether that’s a regular annual check or a review prompted by a broker, accountant or other advisor.
- Insurance changes or events: 37% review their insurance when they experience a significant insurance event, whether that’s a major claim or change of insurance premium.
- Business change: 26% of SMEs claim to review their insurance arrangements when they go through a significant business change such as a large purchase, taking on new staff or upgrading IT systems.
- Set and forget: 16% of SMEs claim to simply “set and forget” their insurance.
