UK SME Insurance: Distribution Dynamics 2019
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Brokers are the most popular channel among SMEs when purchasing insurance. However, there are higher levels of competition in this space than among larger corporations. This is due to different-sized SMEs having a varying degree of complexity in their insurance needs, allowing them more versatility when choosing how to purchase insurance. Banks and price comparison websites (PCWs) continue to challenge brokers’ dominance, although PCWs’ role is limited to simple and familiar products. Capturing market share within this space is no easy task, as the proportion of policies that are auto-renewed is quite high. In the end, price is the defining reason SMEs switch policy. As a result, insurers that can lower premiums through more accurate underwriting or cutting administrative costs will find success in increasing their market share.
This report looks at how SMEs buy insurance coverage and the reasons behind their purchasing decisions. It examines the channels used by SMEs when purchasing insurance, pre-purchase activities, switching behavior, and the factors most important to SMEs when selecting or switching provider.
Scope
– The broker channel accounts for 46.3% of all SME insurance purchases.
– Loyalty is high, with 82.5% of SMEs ultimately renewing their insurance policy.
– Price is the number one factor SMEs consider when picking a provider. The ability to tailor a policy to specific needs is also favored across SMEs when selecting a provider.
– A provider’s poor service is not one of the top three reasons for switching provider. Price plays a much more significant role, especially among smaller businesses.
Reasons to Buy
– Identify the most prominent sales channel for SMEs.
– Adapt or re-evaluate your distribution strategy and proposition to meet the needs of modern consumers.
– Discover the factors influencing SME purchasing decisions and distribution channel selection.
wefox
Halifax
Lloyds Bank
NatWest
Zego
Nimbla
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