SMEs understanding of insurance

By  Vero Insurance

Many SMEs are still confused about various aspects of insurance and have indicated that there’s opportunity for brokers to assist them with providing more clarity in this area and to demonstrate expertise in advice on their respective industry.

Key Insights

  • SMEs show uncertainty about why business insurance premiums increase.
  • Only half of broker clients report their brokers have explained a premium increase.
  • An increasing number of direct buyers have just never thought of using a broker or don’t know how to find one.

Insurance is a highly complex field, and this year’s Vero SME Index has uncovered several significant areas of confusion for SMEs.

First, a high number of SMEs who use brokers do not understand the difference between their broker and the insurance company. Specifically, this year’s survey asked SMEs the following question: “An “insurer” is defined as the party in an insurance contract undertaking to pay compensation. In general, which of the following do you regard as your main insurer?” 36% of broker clients think that their broker is their insurer.

To see the full findings for 2020 and what they mean for brokers, download the report now:

Source: The SME Insurance Index report research was conducted by BrandMatters.
See www.brandmatters.com.au

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