More businesses turning to brokers in troubling times

More businesses turning to brokers in troubling times

An unsettling year has left many businesses concerned about what the future holds. After seeing firsthand how difficult economic conditions can leave a lasting impact on firms, an increasing number of SME owners are looking to insurance brokers.

This year, Vero’s SME Insurance Index marked its 10th anniversary. The new report revealed that 40% of respondents used a broker for their last insurance purchase, up from 35% last year.

While 34% of direct customers were thinking about making the move to a broker in 2018, this number has since risen to 54%.

Vero believes the trend is partly to do with the uncertain world we now find ourselves in thanks to the COVID-19 pandemic.

Many small businesses are worried about the future, with one in five saying they don’t feel confident about their business prospects for the year ahead, and an economic downturn topping their concerns.

This could be sparking SME owners to search for additional support for their insurance needs.

But what the index also shows, is that seeking out a broker could be the best decision a small business ever made.

Brokers can help steer clients through the complex process of arranging the best insurance cover for a range of risks, giving peace of mind during difficult times. 

What’s more, we can keep you abreast of key industry and regulatory developments, and we’re there to help come claims time should the worst happen.

This year’s index shows the vast majority of broker clients are satisfied with their broker, with just 8% dissatisfied.

Satisfied clients like their brokers to carry out tasks such as providing in-depth analysis on their insurance options, checking up on business changes, giving information on changing requirements, and advocating on a client’s behalf with insurance cover and claims.

Claims are an area where the broker’s expertise and negotiating ability are particularly valued by clients. The index shows broker clients who’ve made a claim are much more satisfied with the claims process than their direct counterparts. This year 72% of broker clients were satisfied, compared with only 37% of direct customers.

Importantly, the most satisfied clients have collaborative relationships with their brokers.

Some 51% of SMEs that have a collaborative relationship are highly satisfied with their broker, marking them and 8 or 9 out of 10. But the corresponding figure for those with minimal interaction is just 24%.

That’s why it’s so important for us to keep in touch, and maintain two-way communication with you. You need to know about the latest industry trends and regulatory requirements, and we need to know what’s happening within your business. Only then will we be able to get you the very best cover, at the very best price.

Your business’ circumstances can change drastically over time, so it’s paramount that you update your insurance to reflect this. When you’re allocating money to getting covered, you want to make sure it’s sufficient and is actually providing you with the insurance you need.

For more information, or if this article has brought up any queries, please don’t hesitate to get in touch with your insurance adviser.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.