RSA Insurance has polled more than 200 small- and medium-sized enterprises in the UK and found what they take into consideration when choosing an insurance broker.
The insurer’s survey highlights the below as key factors.
|
Factors when choosing a broker |
Percentage |
|
Value for money |
42% |
|
Ability to speak to a human |
38% |
|
Past experience with the broker |
31% |
|
Broker’s understanding of the business |
31% |
|
Quality of customer service |
31% |
|
Product features |
30% |
Not all SMEs, however, opt to engage the services of a broker for their insurance needs. In fact, according to the poll, only 22% will take the broker route in the future; 32%, direct with insurers; and 23% through price comparison websites.
It was noted, though, that there’s a slight difference when it comes to larger SMEs, 34% of which prefer the direct channel while 28% go to insurance brokers to be covered.
For those who don’t use broking intermediaries, value for money also emerged as the top consideration when selecting an insurer, with over half (52%) picking that particular factor. Next in line were scope of cover (47%), product features (32%), and the ability to speak to a human (30%).
“What is clear from the research are the key things SMEs want from their broker and insurer,” commented RSA’s UK SME director Rob Flynn. “The spotlight is now on the sector to support these customers and adapt how we work to better suit their needs. The pandemic has altered their businesses, and we must be willing to adjust our propositions for them accordingly.
“We are really grateful for all the businesses and their owners who took the time to fill out the survey and provide this hugely valuable insight into what is happening in their sectors and businesses.”
The poll also found that a mere 4% expect their business to be shuttered; 8% forecast shrinkage; 36% anticipate growth in the next 12 months; and 47% think things will be as they are.
“It is encouraging to see the SME sector, a vital element of the UK economy, showing that despite tough and uncertain times they are remaining incredibly resilient and optimistic for the future,” said Flynn.
“There are numerous headwinds facing businesses and so the positive outlook, despite the challenges, is really encouraging. The importance of the SME sector can never be underestimated and helping these businesses to grow must be a priority for both the business community and Government.”
Meanwhile, it was revealed that just 7% of SMEs look to insure everything, while 27% only insure the bare minimum. Notably, more than a third (35%) seek to find the balance between insuring the minimum and getting coverage for everything.
