Understanding the impacts of COVID-19 on Australian SMEs
In March, we launched the ninth Vero SME Insurance Index report. In the same week the COVID-19 virus was declared a global pandemic and business as we know it changed.
Many SMEs have adapted to get through these difficult times. But not all businesses have been equally affected, which is why it’s important for brokers to understand the impacts and behaviours of SMEs in the wake of COVID-19.
As a result, we have commissioned the SME Insurance Index COVID-19 Pulse Check, a new piece of research that aims to provide you with actionable insights into the current environment to help you support your clients during this challenging time.
The insights gathered from over 500 SMEs have shown that around two thirds of Australian SMEs have experienced declines in revenue as a result of the pandemic, and over half have experienced declines of over 25%.
The research highlights that most SMEs want to be in contact with their broker at this time. And that the majority who have been in contact with their broker have found it very helpful. There is a definite appetite for SMEs to hear from their broker, so this is key information for you to manage your client relationships.
Why? The research has shown that those SMEs whose broker has proactively contacted them have a higher overall satisfaction with their broker. This is an opportunity to demonstrate your value and expertise. Without expert advice, SMEs risk making mistakes about their insurance that could negatively impact their business.
In addition to advice on insurance SMEs are also looking for help in areas such as access to government grants and support, business continuity and advice on employees.
Encouragingly broker insured clients have been less likely to reduce or cancel their insurance cover, compared to those who purchased direct. Which indicates that brokers are helping clients understand the importance of maintaining their insurance cover.
The information displayed is based on commissioned research involving over 500 business owners and decision-makers from around Australia. The research was conducted in April/May 2020. AAI Limited ABN 48 005 297 807 trading as Vero Insurance (Vero) has prepared this material for general information purposes only and it should not be used as the basis for decisions in relation to the acquisition or disposal of insurance products or the use of broker services. Vero and its related bodies corporate do not assume or accept any liability whatsoever arising out of or relating to the information. Source: Vero SME Insurance Index 2020.