2021 SME Insurance Index underlines the increasingly key role of brokers/advisers
The highly-respected Vero SME Insurance Index, based on an annual survey of thousands of Australian small businesses recently released its 2021 report and, as always, it provides some fascinating insights into the ever-shifting insurance landscape in Australia. The Vero survey findings were supported by Insurance Advisernet’s latest external independent research (NPS Survey) undertaken earlier this year, which had responses from over 1,300 clients.
Of particular interest is Vero’s analysis of the key advisory role that insurance brokers/advisers continue to provide SME’s. The NPS Survey also confirmed several key items/areas that clients rated highly including knowledge of laws and regulations; demonstrated understanding of the client’s businesses; communication; as well as advice & support. Insurance brokers/advisers continue to support Australian businesses; whether they are based in country areas, towns or large cities in managing risks, making sure their insurance cover is the best available for the premium and assisting with financial protection through insurance. According to Anthony Pagano, Vero Head of Commercial Intermediaries, it’s never been clearer: “In a fast-moving world, brokers continue to have an important role to play in helping SMEs manage the risks that their businesses face” he writes.
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 direct 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. The Insurance Advisernet NPS overall score for Advice & Support was 74%. We believe that with these findings, SME’s are likely to accelerate the shift towards engaging with and utilising insurance brokers/agents in the future.
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 with many insurers offering less cover or ceasing to write insurance in some areas. Alongside this is the continual COVID-19 outbreaks and border closers and the uncertainty these bring, which 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 the Insurance Advisernet philosophy since day one. The Insurance Advisernet NPS overall client satisfaction rating was 97%. 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.
As one of Australia’s largest and most respected professional insurance adviser networks – with over 95,000 SME customers, with a market-leading satisfaction rating of more than 90% – Insurance Advisernet stands ready to assist you and your business. We have locally based professionals throughout Australia, coupled with the buying power to ensure great cover and competitive prices.
To review your business insurance policies, talk to a professional insurance advisor today and find your local adviser.
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