Argyle Insurance and Mitsui Sumitomo Insurance Co Ltd (MSI), part of the MS&AD Insurance Group, have established a multi-year partnership aimed at enhancing insurance options for small and medium-sized enterprises (SMEs) across Australia.
Set to take effect on Jan. 1, 2025, the agreement will enable Argyle to offer a new business insurance package with an expanded combined coverage limit of up to $7 million.
The additional capacity seeks to address the growing demand for SME-specific insurance solutions in a competitive market facing rising costs.
Anthony Day (pictured left), managing director and co-founder of Argyle Insurance, said that the collaboration with Mitsui Sumitomo allows the company to continue delivering on its commitment to the SME sector by strengthening its offerings for brokers and their clients.
“Mitsui Sumitomo Insurance is a well-respected provider with an excellent reputation. The partnership will enable us to continue to offer an outstanding proposition to our distribution partners and their customers,” he said.
Matthew Morgan (pictured third from the left), Argyle’s CEO and co-founder, emphasised the shared vision with MSI.
“This collaboration underscores our commitment to supporting SMEs in Australia through our intermediated distribution partners,” he said. “We are very excited to explore all opportunities in the Australian market, as we embark on the next phase of our growth journey alongside MSI.”
The partnership with MSI will also include the integration of technology aimed at enhancing broker operations and improving service efficiency.
Tomoyuki Komagome (pictured fourth from the left), general manager of MSI’s Oceania branch, explained that combining the companies’ technology platforms would create an efficient broker experience that enables quicker analysis and support.
“Together, we are set to drive significant advancements and establish new industry standards, unlocking significant growth opportunities,” he said.
The partnership comes as Australian SMEs grapple with rising insurance premiums, which have been creating financial strain across the sector.
A recent survey from Business NSW highlighted that one in four small businesses in New South Wales reported insurance premium increases of over 30% in the past year. Approximately 22% of SMEs reported being underinsured, and 12% indicated that they opted out of non-mandatory coverage.
The economic pressures on Australian SMEs are expected to grow, with rising interest rates and escalating operational costs impacting businesses nationwide. According to CreditorWatch’s latest Business Risk Index (BRI), nearly 90% of Australian regions could see a rise in business failures over the coming year.
