15 May, 2017
The purpose of the research was to identify challenges and opportunities faced by SMEs, and find ways to help brokers and advisers target and tailor their offering and provide the right kind of value to customers.
"97% of all businesses in New Zealand are SMEs with fewer than 20 employees, so it’s important we understand their needs and provide them with right solutions, so they can get on with running their business,” said Campbell Mitchell, Executive General Manager Customer Experience.
The report found that 69% of SMEs with six or more employees were more likely to purchase insurance through a broker or adviser, compared to 57% of SMEs with 1-5 employees
"What this tells us is that when small businesses grow, regardless of the type of industry they are in, they reach a point where their business becomes more complex, and they may need advice to understand the impact of change and growth on their insurance needs,” said Mr Mitchell.
Even if small businesses owners feel comfortable arranging their own insurance, Vero urges them to check in with a broker or adviser for advice, particularly if their business is growing.
"Although any business of any size can purchase insurance through a broker or adviser, that tipping point demonstrates the value that a broker or adviser can bring. They are able to provide advice on how to protect your business and income, and more important fill in knowledge gaps around insurance."
- 58% use a broker to save time so they can focus on their business
- 45% rely on a broker or adviser's expert knowledge and advice
- 39% get added piece of mind by using a broker to find the right insurance
- Value is more important than price - only 22% of SMEs say they use a broker to get cheaper prices
- Over half of broker clients scored their satisfaction with their broker as 8 out of 10 or higher
About the research
The Vero SME Insurance Index 2017 surveyed 999 small to medium sized businesses about their attitudes to insurance and brokers and advisers. The research was conducted by BrandMatters.
For this research, a SME was defined as a business that employs between 1 and 19 people, including sole traders, according to the Statistics New Zealand definition.
The survey has been run in Australia for the last five years, but this is the first time it has run in New Zealand.
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