The 2024 edition of the Vero SME Insurance Index highlights a resurgence in satisfaction among the clients of insurance brokers in Australia, with a whopping 87% of those surveyed awarding their broker a satisfaction score of eight out of 10, or higher.
This marks a significant rebound from the previous year’s 78%, with brokers delivering value-added services, assessing risk profiles, and offering strategic advice on mitigating risks.
The survey was conducted among insurance decision-makers from 1,500 small to medium-sized enterprises (SMEs) and 250 larger companies across Australia.
There was a discernible shift towards more comprehensive insurance coverage, revealed in this year’s survey.
A mere 6% of respondents admitted to opting for the minimum necessary insurance, whereas a substantial majority, 76%, reported seeking coverage for as many risks as possible. This trend underscores a growing recognition of the peace of mind that thorough insurance protection can offer, with the percentage of businesses valuing this peace of mind soaring from 67% five years ago to 82% in 2024.
The index spotlighted heightened demand for brokers to engage in risk assessment and management activities, with 80% of businesses expressing a desire for brokers to evaluate their risk profiles.
Vero head of distribution Anthony Pagano emphasised the integral role of brokers in aiding businesses to navigate risks and secure their assets, especially in challenging times.
“Despite challenges and hardships, our sector has the ability to establish strong relationships with its customers, allowing us to provide trusted advice and a helping hand when businesses need it most. It’s through brokers that customers can effectively mitigate their risk and maintain their focus on delivering their business goals,” he said.
In addition, the index revealed growing concerns among Australian SMEs over the impact of natural disasters, with a notable increase in businesses prioritising adequate coverage for such events.
“Australians are feeling the impact of natural disasters more and more with every passing year, no less in 2024 with a devastating start across Far North Queensland, New South Wales, and Victoria especially,” said Vero head of commercial claims Kira Pellicano. “With more unpredictable weather events expected throughout the year, this is a timely opportunity for brokers to expand the conversation with clients, ensuring they are aware of their coverage and what to do if they are impacted and need to claim.”
Artificial Intelligence’s (AI) role in business operations was another key focus of the survey, with nearly half of the businesses (46%) actively employing AI technologies.
Despite the benefits, the rapid integration of AI has introduced new challenges, including cyber security risks.
The findings suggested a gap in discussions between businesses and brokers on these emerging risks, indicating an opportunity for brokers to leverage AI to enhance service delivery while addressing these new challenges.
