2021 SME Insurance Index Underlines the Increasingly Key Role of Brokers/Advisers
The highly-respected Vero SME Insurance Index 2021 report, provided some fascinating insights into the ever-shifting insurance landscape that Australia is currently experiencing. Based on an annual survey of thousands of Australian small businesses, the survey emphasised the importance of the role which insurance brokers/advisers continue to provide SME businesses, in navigating the current insurance market.
The annual survey listed several key areas that clients rated highly, including:
Knowledge of laws and regulations;
Demonstrated understanding of the Client’s businesses;
Advice & Support.
From a Risk Guidance Insurance perspective, this feedback aligns closely with what we do to support West Australian businesses with their risk management and insurance needs; whether they are based in Perth or country areas. Risk Guidance clients rest assured, knowing that they have appropriate insurance cover for the best available premium.
Twice as Satisfied. Amongst many interesting findings, the 33-page report revealed that partnering with a trusted insurance broker/adviser led to satisfaction levels almost double (yes, double) that of businesses who choose to ‘go it alone’ and purchase insurance directly from insurers. Vero found 72% of surveyed SMEs who had made a claim via their broker in the previous 12 months were ‘satisfied with the outcome, compared to only 37% of direct claimants.
An Advocate by your Side. Another thing that’s very clear in 2021, is Australia’s complex and continually changing insurance market can be confusing to navigate for many businesses. We continue to see rising premiums and with many insurers offering less cover or ceasing to write insurance in some areas. With continuing COVID-19 outbreaks and border closers and the uncertainty these bring highlights the value of having a risk and insurance professional by your side. Like other professional advisers you rely upon, such as solicitors and accountants, insurance brokers/ advisers act for you and provide advice in your best interests. This is especially important in delivering hands-on assistance when you have to make claim.
Collaboration Drives Value. At the heart of this relationship, of course, is collaboration, something that’s been at the heart of Risk Guidance Insurance philosophy since day one. The Vero 2021 SME Insurance Index shows collaboration continues to be highly valued by Australian business owners, with 51% of SMEs who consider their broker relationship to be ‘collaborative’ scoring their satisfaction levels at 9 out of 10, or higher. This is hardly surprising considering constantly changing risks faced by businesses, compounded by time and financial pressures. Having ready access to a trusted insurance and risk adviser is an investment that pays for itself, many times over.
Demand Set to Rise. Looking to the future, Vero’s data suggests the move away from direct insurance, towards the trusted advice provided by brokers/advisers is here to stay. 54% of businesses who were direct insurance buyers in 2021, say they are actively considering using a professional broker/adviser in the future. Significantly, this is up from 34% in 2018 – an increase of 37% in just three years, reflecting the need for more advice to assist in decision making in these challenging times.
Important Information This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to constitute personal advice. This type of insurance product is designed for small and large businesses, who want to be covered against financial loss relating to property and loss of business income following a fire, explosion, storm or other types of insured losses. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.