Research by Vero Insurance shows nearly two thirds of New Zealand’s small and medium enterprise owners and decision makers (SMEs) want insurance advice as a result of the Covid-19 crisis.
According to its survey, business owners want to know what types of insurance would benefit their business (18%) and how to defer or adjust insurance premium payments (17%).
Its findings also show that 85% of SMEs have experienced a decline in revenue following Covid-19 and that 57% buy their insurance through a broker most or all of the time – while 29% buy all their insurance directly.
An earlier survey by Vero showed that around 30% of SMEs were considering making changes to their business insurance. (See our story One Third Of SME Owners Reviewing Their Insurance).
SME Index highlights risk advice as a growing area of focus from small businesses…
Along with insurance advice, Vero’s SME Index highlights risk advice as a growing area of focus from small businesses with 79% of New Zealand businesses reporting they are making changes to their businesses as a result of the pandemic.
The company is to release a suite of risk management tools to help brokers and SMEs work together to understand a businesses’ risk profile.
Key survey findings:
- 64% of SMEs wanted insurance advice in regard to the current market
- More than half of the businesses surveyed said their revenue had declined by 50% or more following Covid-19
- 80% of SMEs think that it is important for brokers to assess their risk profile and recommend insurance cover accordingly
- 1 in 4 direct insurance buyers say that understanding the risks facing their business is difficult
- 28% of SMEs are considering making changes to their insurance as a result of the pandemic, and 50% of these would like advice
Vero Executive General Manager Mark Wilkshire said: “Changes like temporarily closing your premises, remote work and adjusting staff levels all have an impact on the risk profile of a business, and there is considerable scope for SMEs to connect with insurance brokers for support with risk analysis and insurance decision-making.”