Insurance research finds optimism among SMEs

More small- and medium-sized enterprises are optimistic about their growth prospects, according to new research from Premium Credit’s Insurance Index.

Based on a March poll among 933 SME owners and managers, below are the research findings reported by the insurance premium finance company.

• 49% think revenues will increase in the next 12 months
• 14% are forecasting revenue growth of 25% or more
• 10% believe revenues will shrink in the year ahead
• 17% predict revenues will stay the same
• 24% can’t say what will happen to revenues

“SMEs have been through a tough period in the last three years with the COVID-19 pandemic being rapidly followed by rising inflation and interest rates,” noted Adam Morghem (pictured), strategy marketing and communications director at Premium Credit.

“SMEs have been innovative and adaptable throughout the period as they react to pressures on cashflow. Premium finance is a very cost-effective way for businesses to buy insurance, and better manage their finances and cashflow by spreading payments.”

According to Premium Credit, 35% of respondents expect revenues to increase following new product launches; 34%, by expanding into new markets; 30%, through successful cost-cutting; and 29%, with the subsequent easing of the cost-of-living crisis.

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