Larger Australian businesses are getting serious about risk management
As Australian businesses edge towards a more mature approach to risk management, a clear divide remains between larger organisations and smaller businesses who are constrained by time and structure.
Businesses show signs of progress towards risk management
The Vero SME Insurance Index highlights a gradual, but slow, shift towards more proactive risk management. While eight in ten businesses have never conducted a formal risk analysis, there has been a measurable reduction of 7% of businesses taking an “ad hoc” approach to risk management, indicating a positive transition from awareness to action. Medium and large businesses are driving this progress.
Documented risk management strategies and regular audits become far more common once businesses exceed the 20‑employee threshold, where governance structures, board oversight and compliance expectations increase. In contrast, micro and small businesses (with 19 employees or less) are often acutely aware of their risks but lack the time, structure or internal capability to manage them formally.
Hear from real businesses on their risk management approach.
Scale is driving the shift beyond reactive risk management
The research makes it clear that a one‑size‑fits‑all approach to risk management does not work. Larger organisations tend to embed risk management into governance and continuous improvement processes, while smaller businesses rely on informal, experience‑led approaches.
This is where brokers play a critical role. The Index shows that brokers can be instrumental in helping businesses take their first steps, but the approach needs to be tailored. For smaller businesses, lowering the barrier to entry through simple templates, checklists and practical guidance can make the difference between inertia and action.
Trusted advice drives risk management action
Advice alone is not enough. The Index shows that advice turns into action when it feels strategic, trustworthy and aligned with the business’s broader objectives. Of the 60% of businesses that have received risk advice from their broker, two‑thirds acted on it, demonstrating strong trust in broker expertise.
Businesses are most likely to act when advice supports resilience, aligns with strategy and is practical to implement, rather than when it is framed around compliance or cost.
“With good information, clients are making sensible and informed decisions. They are taking out the cover. They are managing the risk.” Richard Klipin, CEO, National Insurance Broker Association (NIBA)
This insight reinforces a central theme of the research: trust and clarity are the catalysts that convert guidance into meaningful action.
The shift to risk partnership
The relationship between broker engagement and perceived value is striking. The more a business uses a broker, the more likely they are to view their broker as a full risk partner rather than a transactional facilitator of insurance. More than half (54%) of heavy broker users perceive their broker as providing advice and broader risk guidance, compared with just 28% of light broker users.
This points to a clear “ladder of value perception” from transactional support, to advice, to true partnership. Moving clients up that ladder requires proactive education, consistency and follow‑through. Risk guidance, rather than policy placement alone, is the hallmark of strong, trusted relationships.
Different lenses, similar conclusion
The Vero SME Insurance Index findings strongly align with themes emerging from NIBA’s broker research, Complexity to Clarity: The Broker Advantage, particularly the opportunity for brokers to deepen their role as trusted risk advisers. Trust, empathy and industry understanding remain core differentiators for brokers, even as technology and risk complexity evolve.
Reflecting on the alignment between the two research programs, Klipin said:
“There are a lot of similarities between the 2026 NIBA broker research and the Vero 2026 SME Insurance Index. You see the trusted adviser role, the impact of technology, regulatory disruption and a completely new risk landscape. Consumers want more from their broker, and while there’s a lot of disruption coming through, there’s also a lot of opportunity.”
The message is clear: brokers who stay close to their customers and guide them through emerging risks are best placed to deliver strong advice and better outcomes in a complex risk environment.
Learn More
To discover more about the appetite for risk management amongst Australian businesses:
Watch the 1hr Vero SME Insurance Index webinar (CPD Accredited)
This content reflects insights from research conducted between September and December 2025 as part of the Vero SME Insurance Index Report 2026 (Report). AAI Limited ABN 48 005 297 807 trading as Vero Insurance (Vero) has commissioned the 2026 SME Insurance Index Report. The information in this article and Report is intended to be of a general nature only. Subject to any rights you may have under any law, Vero and its related bodies corporate do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, resulting from any reliance upon on it - please make your own enquiries. Vero and its related bodies corporate do not guarantee the accuracy, reliability, completeness or currency of the information provided. Any advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you or your business before acting on it. The information is not a recommendation or statement of opinion about whether a reader should acquire insurance from Vero (or its related bodies corporate) or services from any insurance intermediary or otherwise alter their business arrangements. Readers should confirm information and interpretation of information by seeking independent advice.
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