The latest data released as part of
Vero’s SME Index has revealed a target market for brokers and an underutilised insurance product.
The first Vero release highlighted the challenges brokers face as online pressures continue to mount but the latest data shows that brokers have an opportunity to boost their businesses with specific business owners and business interruption cover.
More than half of the 1,500 small business owners that were surveyed as part of the index said that they had a clear succession and contingency plan in place in the event that they are unable to work in the business.
However, just 21% of those with a plan claim to have business interruption (BI) insurance.
Anthony Pagano, head of commercial intermediaries at Vero, said that the often ignored BI cover presents brokers with a gap in the market that they can utilise.
“This significant gap is an opportunity for brokers to explain what business interruption insurance means to clients who want to protect their business for future growth,” Pagano said.
Whilst BI may be a product brokers can look to use to boost their businesses, the index also found a class of business owners that brokers should look to reach out to.
The report, for the first time, asked business owners to nominate their main motivations for being in business.
The insurer identified what it calls ‘Business Builders’, and an 18% block of respondents who want to achieve a long-term goal such as building a business empire and leaving a legacy of creating a saleable asset.
It is these types of businesses and business leaders that brokers should look to target, Pagano said, as only 27% of Business Builders use a broker and many are open to the idea.
“This is an opportunity for brokers to increase their presence with these more sophisticated business owners,” Pagano continued.
“Their size and ambition suggests they may be more likely to place importance on protecting their business and seek expert insurance advice.”
Vero also announced the release of the first tool to support brokers based on the latest index.
A simple questionnaire has been developed which aims to reveal the motivations behind SME business owners.
The questionnaire is designed to be sent to SME clients. The results will be then collated, analysed and shared with all brokers who participate.
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