Being on top of risk is no easy feat, particularly for small- and medium-sized enterprises (SMEs) with limited resources. Making the task less difficult are insurers and brokers who serve as SMEs’ risk partners, and here Vero New Zealand shines a spotlight on how a seemingly simple yet insightful tool is helping brokers do that crucial job of mitigating risk for the benefit of SME clients.
Two years ago, Vero rolled out a so-called risk profiler that paints a picture for brokers and has since proved valuable when having risk conversations with customers. The profiler spans 12 sectors: accommodation; building owners; community; engineering, garages, and motor; hospitality and entertainment; manufacturing; medical; offices; retail; service; tradies; and warehouses and storage.
Based on Vero NZ’s data from 2019 until July 2022, here are the most common claims per industry:
|
Sector/Claim |
Accidental damage / Loss |
Burglary/Theft |
Burglary / Theft from vehicle |
Fire/Explosion/Arson |
Fusion |
Impact damage |
Malicious damage / Vandalism |
Water damage / Burst pipes |
Weather events |
|---|---|---|---|---|---|---|---|---|---|
|
Accommodation |
16% |
3% |
– |
6% |
– |
8% |
6% |
36% |
11% |
|
Building owners |
12% |
20% |
14% |
8% |
– |
14% |
8% |
9% |
– |
|
Community |
15% |
15% |
– |
5% |
– |
7% |
6% |
19% |
19% |
|
Engineering, garages, and motor |
19% |
15% |
5% |
4% |
– |
14% |
– |
10% |
20% |
|
Hospitality and entertainment |
16% |
12% |
– |
5% |
– |
8% |
7% |
19% |
14% |
|
Manufacturing |
22% |
9% |
5% |
6% |
– |
11% |
– |
10% |
18% |
|
Medical |
26% |
6% |
– |
3% |
3% |
8% |
– |
24% |
18% |
|
Offices |
25% |
6% |
5% |
– |
– |
12% |
6% |
21% |
14% |
|
Retail |
15% |
20% |
– |
– |
3% |
11% |
8% |
16% |
13% |
|
Service |
19% |
11% |
– |
3% |
– |
8% |
5% |
24% |
17% |
|
Tradies |
22% |
23% |
41% |
2% |
– |
2% |
– |
3% |
3% |
|
Warehouses and storage |
18% |
14% |
10% |
4% |
– |
16% |
– |
12% |
16% |
According to the insurer, 29% of SMEs never undertook any form of formal risk analysis prior to the introduction of the risk profiler, while less than half (48%) were confident about business risk assessment.
“Since the launch of the Vero risk profiler in 2020, we have received hugely positive feedback about the value of the tool for the broker community,” shared Vero business property executive manager Chris Brophy (pictured) with Insurance Business.
“Brokers have told us the Vero risk reports are a useful reference tool when on the phone to clients, a way of providing additional value with renewal documents, to use in advance of a ‘risk survey’ to help clients prepare and put their mind at ease, and to support new brokers in the industry.”
Vero said one broker described the profiler as simple and easy and at the same time insightful and adding real value to the broking network. Another asserted: “This is a hugely valuable tool – the NZ insurance market has needed something like this for a long time.”
Customers, meanwhile, are pointing to the educational aspect of the tool, with one business leader confessing “there is more to assessing risk” than they thought.
Brophy added: “An example of the risk profiler’s value came recently via feedback from a small business broker saying that, having taken a risk profiler brochure to a client and gone through it in detail at the client’s restaurant, the client installed a wet chemical extinguisher in the kitchen and has committed to having the exhaust duct cleaned every three months – something the broker had been advising for some years.
“The client belonged to a body corporate and so is likely to be among a block of shops and businesses, so a fire may potentially present risk to multiple premises. In learning about the fire risk, and installing fire prevention and management equipment, the client has taken steps to keep both their business and potentially reduce the risk of others in the body corporate.”
Constantly updated, the resources available through the risk profiler include downloadable checklists as well as precautions on timely issues. “For example,” said Brophy, “we recently added a guide on increasing security through barriers and bollards in light of the recent increases in ram raids and shopfront attacks.”
Insurance brokers can use the Vero risk profiler at no cost.
