The latest
Vero SME Index has found that business owners under 50 are more likely to use a broker than their older counterparts.
The second batch of results from the insurer found that 59% of under-50s use a broker for their insurance needs, compared with 56% of those over 50.
In a surprising result, it was found that 32% of 18- to 49-year-olds buy their insurance direct compared with 37% of the older cohort, but younger customers are less satisfied with their broker’s service. Just 45% of younger business owners said they were highly satisfied with the service provided by their broker compared with 63% of those over 50. Some 31% of under-50s described themselves as not satisfied with the service, compared to 22% among older generations.
Campbell Mitchell, executive general manager of customer experience at Vero, said that the survey highlights that brokers need to stay up-to-date with their younger SME clients.
“People under-50 are creating and establishing businesses that will become the future of our economy,” Mitchell said. “And our latest research has found that they want to do business in a different way to the over 50s who have dominated the business world for so long. It’s important for insurance brokers to understand and respond to the generational change that’s currently underway.”
The reasons for using a broker differ between the age groups as 64% of younger SME owners look to a broker to save time, while 64% of older SME owners trust their broker to get the right price compared with 43% of younger users.
There is still some confusion about what a broker can do for an SME owner and business among the younger generation, however, with 27% of those younger broker users unaware that brokers can manage claims and 21% unaware that brokers can assess the risk profile of a business.
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