VERO SME Insurance Index 2021 - Recap
Vero recently released their 2021 SME Insurance Index. The 10th year of the report and there were some interesting trends included within it. Some insights affirm known trends or ideas and other highlighted some new areas worth considering.
Below are a few highlights that jumped out at me.
What drives client satisfaction?
1: A highly engage insurance broker who communicates often with their clients
2: Insurance brokers who provide added value by doing tasks such as - providing in-depth analysis, check-in on a client as their business changes and growth.
Brokers are best when they are :
- Overcome client challenges
"A good insurance broker knows your business"
Claims are a moment of truth for brokers - Claims present an opportunity to demonstrate the value that insurance brokers bring
Broker usage is trending upwards - up from 35% to 40% 2020 vs 2021
What about Direct Insurance Buyers?
The percentage of Direct buyers who would consider using an insurance broker for an insurance purchase in the future has increased from 35% in 2018 to 54% in 2021.
Why? What is prompting customers to turn back to using an insurance broker?
1: Save time on considering their insurance
2: Access to better insurance policies via a broker
3: Growth in their business requires more complex insurance
Key success action for retaining a customer?
--> Stay in contact with your customers.
Insurance Brokers play an important role in educating customers. In particular, customers need education around the impact of underinsurance and for any critical policy changes that occur.
Mike Emmett, AUB Chief Executive Officer and Managing Director
Sarah Lyons, Chief Executive at Gallagher.
Both see the role of digital as being critical for insurance brokers and customer engagement.
How do clients choose their insurance broker?
1: Insurance Line
3: Sector specialisation
Mike Emmett focused on the deep experience and industry expertise as a critical piece - the deeper knowledge an insurance broker has about a specific sector, the better insight a broker can provide to their customers.
How does a broker show expertise to a client?
Sarah Lyons reflected on the ability for insurance brokers to ask questions and understand their clients business to reduce risk from their balance sheet.
Mike Emmett suggested that the level of trust has changed over 10 years, the clients need to be confident that they are getting what they are paying for when buying insurance. Responding to client changes over time as being critical and ultimately, does the client's claim get paid or not?
Service from a broker that customers can or should expect?
Client is looked after through the lifecycle of the policy. No longer just calls or face to face, they want text messages, see blogs and get educated etc.
There has also been an increase in expectations around responsiveness with immediate responses often expected from customers driving comments that the level of turnaround needs to be quick.
Advantages of using an insurance broker during a claim:
Commercial insurance is a complex product - buying it and understanding their rights during a claim.
Claim satisfaction from clients either with a broker or operating directly.
"Go direct you are on your own" - Sarah Lyons, Gallagher
Impact of COVID?
Covid - made brokers think about their communication with customers and opportunities to add more value to their businesses - taking out complexity.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Andy Jamieson.