SMART Business Insurance director Mark Vanzo (pictured) was a small business owner himself before he set up the Melbourne-based insurance brokerage in 2013, and used his first-hand experience to employ a hybrid set-up combining an online resource and easy access to qualified brokers.
In an interview with Insurance Business, Vanzo said: “We had a PI (professional indemnity) policy and we were probably looking at the wording and going, ‘What are we actually covered for and would that respond’, etc. As a small business owner, you probably don’t feel that it warrants a traditional broker model wherein someone would come in to see you.
“But when you’ve got some questions, you want to get on the phone and have someone to be on the other end of the line who will take your call. And I think that’s important. So, while we provide a lot of information online, we actually run a hybrid model – there’s always someone to talk to, and that’s probably the most important thing.”
For instance, if a client just needs a COC or certificate of currency, they can get it directly. Those with further concerns about their cover, meanwhile, can reach out to a SMART Business Insurance broker via phone or email. The company caters to sole traders and businesses with no more than 20 employees.
“Having been a small business owner myself and having many friends who were small business owners, I knew three things about people buying business insurance,” noted Vanzo, highlighting why he chose to foray into insurance after running a marketing agency. “The first thing is a lot of them don’t really know what they’re paying for, or what they’re getting for the premium.
“Also, I knew that increasingly people were looking online for answers. And, thirdly, the service they’re receiving from incumbent insurers and brokers was mixed. Our vision, based on that, was to make it easy and affordable for small business owners to get suitable cover, help them with any cover questions, and, importantly, be there if they have a claim.”
According to him, at the time there weren’t too many insurance brokers representing the interests of small business owners who simultaneously had a strong online platform.
Vanzo, who was looking for the next challenge and found a market opportunity, stated: “We thought there was a bit of room for us, and research showed a staggering amount of searches online for business insurance needs. With well over a million small businesses in Australia, we thought we could help plenty of them find suitable cover and also create a brokerage for ourselves.
“Probably, unlike most people, I chose insurance rather than the other way around.”
At present, Vanzo is thrilled to be reunited with the SMART Business Insurance team, 80% of which is now back in the office five days of the week following previous remote work arrangements. The others are on the premises two days while working remotely for three days. Meanwhile, the company, which retained its entire staff last year, is looking to add to its roster.
“We’re excited to continue to look after our clients, but also excited to continue to grow,” said Vanzo. “And for the team, we’re really excited to be back together. Last year was very hard, and it’s really good to have some lunch or drinks together.
“Brokers get a lot of energy off one another as well, and they can support one another. Also, currently, we want to find and develop a couple of good brokers so we can continue to provide some great service to our clients while growing.”
In terms of the broader industry, the director thinks the priority is to be on the front foot with compliance and transparency, and said brokers need to be proactive when it comes to the regulatory changes that are on their way. As for the hard insurance market, Vanzo believes it is times like these that brokers get a chance to prove their value.
