Media release

Vero announces key findings of the SME Insurance Index 2023 including growing concern of climate change for small businesses

30 August 2023

Vero New Zealand has today announced some of the key findings from the Vero SME Insurance Index 2023. 

New research from Vero found that one in five businesses are expressing growing concern about the impacts of climate change. 

Sacha Cowlrick Executive General Manager, Business at Vero says, due to the severe weather events this year the insurer had a particular focus within the Vero SME Insurance Index 2023 survey on climate change and the perception and awareness of natural disaster risk and impact. 

“There has been a definite shift in attitudes towards climate change and that showed in the results, with not only rural businesses experiencing heightened concerns, but direct buyers, large businesses, and those operating in farm-based or temporary work sites, like construction.”

The findings highlighted the rising unease among businesses about natural disasters, with 18% expressing increased worry compared to only 7% in 2021. Additionally, a third of businesses perceive themselves to be at moderate to high risk of being affected by natural disasters.  

The research also indicated that the number of businesses who feel prepared to respond to climate change has remained unchanged since 2020, with figures consistent at 37%.  

Cowlrick says, this is a significant area where brokers have the opportunity to help clients feel better prepared.  

As the seventh edition of the Vero SME Insurance Index 2023, the insurer surveyed over 750 businesses across Aotearoa to acquire a deeper understanding of the insurance behaviours and attitudes of small businesses and their insurance requirements.  

Other key findings coming from this research include the significant concerns many businesses have regarding the economic downturn, with majority reporting varying degrees of impact due to inflation. 

The research also highlighted price sensitivity being particularly heightened for SMEs, revealing that price-sensitive businesses demonstrated a higher tendency to make insurance changes that potentially increase their business risks. This finding highlights the value of brokers being present at renewal time.

The insights released today are part of the wider Vero SME Insurance Index 2023 package due to be released to market later this week.  

“The research should highlight to SMEs how Vero is contributing to the wider New Zealand insurance market and provide brokers and advisers insights into what SMEs require from their insurance, and where they can add value for the customer.”    

For more information, please contact: Molly.Kirkbride@suncorp.co.nz

Notes: 

• SME = Small and medium-sized enterprises
• Link to the full Vero SME Insurance Index 2023: Vero SME Insurance Index 2023 | Vero