The following is an opinion article produced by Cathy Taylor, head of commercial underwriting and operations at Ageas UK.
We shouldn’t need any excuse to celebrate the UK’s small businesses but if there’s one weekend when we need to be showing our support, it’s this Saturday as thousands of the UK’s entrepreneurial and enterprising outfits showcase their goods and services. With only 24 sleeps until Christmas, if you need another good reason to turn up to one of the many events across the UK, why not get a head start on the shopping by supporting a local small business?
While last week’s Autumn Statement delivered some positive news for businesses, there is a great deal of uncertainty among small firms right now. A report from the Federation of Small Businesses shows the number of small business owners lacking confidence about prospects exceeds those who are confident by 2.9% – the first time the index has hit negative territory in four years. The most cited cause of changing business costs is higher labour costs, while three-fifths say the economy is a barrier to achieving growth.
However, the report also showed that small firms have started to take on new staff, and more say revenues are up than at the start of the year.
The measures announced in the Autumn Statement might help small firms build on this growth. While the Chancellor focused on consistency, preparation and steadfastness as the UK prepares to Brexit, the plans to invest £400 million through the British Business Bank, with a view to unlocking £1 billion of investment is a good reason for positivity. Indeed, prior to the Autumn Statement, the CBI said that the Government will need an “ambitious, pro-enterprise agenda” to encourage firms to invest and to improve future productivity.
From our perspective we have seen a marked increase in SME business growth over the past couple of years, with a concentration in the Midlands, North of England as well as London. This suggests the Government’s re-affirmed commitment to create a Northern Powerhouse, first announced in June 2014 is already boosting trading confidence in the region. The Chancellor has made a point of saying that for too long, investment has been focused solely on London, and the Government will publish a strategy to address this going forward.
The evident opportunities for brokers is one of the reasons why we have a dedicated Regional Broker Development team, headed by Joel Markham, out on the road in brokers’ offices giving them the hands on support to maximise the potential of SME business in key commercial hubs in the UK. It’s also why we have invested so heavily in our digital trading propositions to enable brokers to capture this high volume, low premium business in a swift and cost-effective manner.
Perhaps now more than ever before, small businesses need the advice and support of their broker. Aside from supporting businesses post Brexit, we are now operating under the Insurance Act 2015 which puts more onus on the insured to disclose their risks. Brokers are their key ally in this new world and this weekend in particular is when small businesses will be making new friends and allies to put them on a firm path for the year ahead.
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| Ageas SME Cover Growth* 2014 vs 2015 |
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| Region |
Change Year on Year % |
|
| CI/IOM |
-11.1% |
|
| East |
49.9% |
|
| Greater London |
94.9% |
|
| Midlands & North England |
77.3% |
|
| Northern Ireland |
-12.2% |
|
| Scotland |
103.3% |
|
| South East |
65.8% |
|
| South West |
75.0% |
|
| Wales |
66.4% |
|
| Grand Total |
74.1% |
|
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*Excluding Property and Tradesman and renewals
The preceding article is an opinion article produced by Cathy Taylor, head of commercial underwriting and operations at Ageas UK. The views expressed within do not necessarily reflect those of Insurance Business UK.
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