What SMEs want
Hiscox recently surveyed small and medium-sized businesses to gauge their concerns about risk and find out what they want from a broker. So what did they say?Q: What are SMEs most concerned about risk-wise?
A: IT professionals know that any poor advice they give or errors they make could have a huge impact on their business.
Estate agents know that their industry isn't always seen favourably by clients and feel exposed and at risk as a result.
Recruitment consultants are affected by frequent changes in employment legislation. They feel they're becoming more exposed as employment trends shift towards temporary and contract positions, meaning that employer responsibilities are shifting towards the agency.
Marketing companies are less concerned with being sued than other professions and feel that their current contracts are sufficient. However they have a poor understanding of PI and currently only buy it as a result of client's demands - and even then the company doesn't really understand the benefits of PI.
Q: What do SMEs like about brokers?
A: To SMEs, insurance is a 'must have' and registers low on the interest scale. They'd rather be getting on with their core business and leave the insurance to their broker who they believe is:
- quicker – SMEs don't want to have to sift through various providers' offers
- safer – they don't want to rely on their own understanding of the small print – although they do think they can objectively evaluate the broker's advice.
- more thorough – they don't feel they'd end up with the right policy if they went direct to a provider
- efficient – SMEs think brokers have better leverage with insurers than they would.
Q: What do SMEs look for in a broker?
A: They mainly rely on a recommendation from a business colleague or friend, which establishes trust. Alternatively, they may find a broker through industry associations or business advisors.
As these businesses are knowledge-based advisors, they know that first impressions are everything and they expect the same professionalism from a broker.
They want a broker to actively develop an understanding of their business by asking the right questions and spotting issues the client might not have considered.
SMEs see a broker as a highly valued advisor who can help them deal with more complicated insurance needs.