Major insurer
AXA has released a new report that reveals the struggle mid-market manufacturers face when buying insurance.
The latest research discovered that manufacturing bosses are overwhelmed by the breadth and depth of the market. With many companies needing a multitude of different products, some don’t know the policies they have in place or what they need to buy, the report said.
“I’ve listed 10 policies but there’s probably about 10 others I have forgotten about,” one of the respondents was quoted as saying in the report, which polled directors and insurance decision-makers based in four key UK manufacturing sectors – plastics, wood, metal and precision engineering and machinery and equipment.
Respondents also admitted to feeling overwhelmed by the lack of clear policy wording. The report said many buyers are not exactly sure on what their cover included and excluded.
“Many struggled to describe their policies and their cover levels, while others admitted that they may be overinsured, or have created an overlap in their insurance, to make sure they were adequately covered,” the report said.
With manufacturing bosses scratching their heads over insurance, the report said the industry should “go far beyond its traditional role of offering products and simple risk management.”
“With its knowledge of the manufacturing marketplace, global trends and pending legislation, the insurance industry can become an advisor for midmarket business in the sector, helping owners with all the problems, both big and small, that keep them awake at night,” it said.
The report identified four types of customers from the mid-market manufacturing sector and their specific needs from their brokers:
- Reluctantly reliant – they like to feel in control and are looking for a good deal on a tailored product. They want their broker to be a trusted expert providing knowledge and expertise.
- Shoulder shruggers – they want to buy insurance hassle free and want straight talking, clear communication from their broker, who is expected to do the legwork.
- Hand holders – they need their brokers to feel like a partner and an extension of their business, giving them knowledge and confidence to be in control of the decision making process.
- Fazed fretters – they want an expert to help them find all-encompassing cover but need insurance explained to them in plain English.
Related stories:
85% of homeowners don’t understand this insurance product
UK travellers scratching heads over terrorism cover
