Why SMEs are turning to brokers for advocacy and advice

Published: 01/06/2022

Why SMEs are turning to brokers for advocacy and advice

Online shopping is showing no signs of slowing in popularity for everything from groceries and clothes to insurance. But many of us also don't overlook the value of good personal service.

When purchasing insurance, it's essential to determine which avenue and level of service work best for you. Vero's SME Insurance Index delves into this further.

The annual survey looks at responses from 1500 small and medium enterprises (SMEs) and found that more businesses turn to the direct market and brokers to purchase insurance. Alternatively, less complex policies such as commercial motor have often been selected without advice.

Personal advice was identified as being highly valuable. Of the SMEs surveyed, 84% were highly satisfied with their broker, with this figure soaring to 90% for those who partially buy direct.

The most common reaon for buying direct was ease, with many also citing price as an influence. But the survey noted that policy scenarios are sometimes much more complex than they seem at first. Therefore, it can be beneficial to deal with a broker who has a holistic perspective and industry experience at these times.

The survey found that SMEs often turn to brokers for risk mitigation advice and more information about emerging risks. They also reach out to brokers to get them to advocate for them and liaise with insurers on their behalf.

When SMEs engaged a broker before lodging a claim, 63% were satisfied with the result. However, this figure was much lower for direct buyers who didn't engage a broker, at 42%.

The speed of claims handling, effective communication, and the amount paid out by a policy influenced satisfaction levels. According to the survey, most SMEs sought assistance from a broker because their business had grown or their needs became more complex.

Many participants also had business partners or financial professionals recommend that they enlist the help of a broker. Another common influence was word of mouth, specifically listening to other people's experience with claims.

There is plenty to consider when deciding which insurance is right for you. Advice and support can provide invaluable peace of mind when weighing up your options. That's where an insurance broker can help, from intial discussions to if a claim needs to be made.

A broker advocates for you and works in your best interest. The Vero SME Index paints a clear picture of the immense value of this.

How Coverforce can help

Our experienced team of brokers are here to help protect the financial future of your business by providing personalised risk advice and tailored, smart insurance solutions. For more information or to arrange cover, get in touch with your local Coverforce Office today.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly

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