United Kingdom (UK) SME Insurance: Distribution Dynamics, 2025
Powered by ![]()
All the vital news, analysis, and commentary curated by our industry experts.
The report examines how UK SMEs (up to 249 employees) purchase different commercial insurance products. This includes channel and method, provider selection, and customer retention. It also examines future cancellation and switching intent. SME distribution preferences are categorized by business size, allowing readers to understand nuances by SME size. The report is based on GlobalData’s proprietary UK SME Insurance Survey.
Brokers remain the key distribution channel for SME insurance in 2025. However, many SMEs mirror personal insurance buying habits, preferring the direct channel or price comparison websites. Price is the most important factor for sole traders and micro and small firms when choosing a provider, while larger SMEs consider a wider range of factors. Price is also the primary reason why SMEs switch providers. The cost-of-living crisis is having a tangible effect on the way SMEs do business, contributing to a large proportion of policy cancellations.
Scope
The direct channel accounts for a considerable share of SME insurance, reflecting the desire for convenient and efficient insurance purchasing among SMEs and the spillover of personal insurance buying habits into the commercial sphere.
Price is the most important factor for SMEs of all sizes when choosing a provider. This sentiment is strongest among sole traders and micro enterprises.
Sustainability remains a vital long-term trend for the industry, with over half of SMEs indicating that an insurer’s record on sustainability is an important or very important factor when selecting a provider.
Reasons to Buy
Explore the purchasing channels and methods used by SMEs of all sizes for various products.
Improve customer retention by examining reasons SMEs switch providers.
Adapt your distribution strategy to cater to changing SME needs and attitudes.
Understand how open SMEs are to using AI when purchasing insurance.
Table of Contents
Get in touch to find out about multi-purchase discounts
reportstore@globaldata.com
Tel +44 20 7947 2745
Related reports
View more Commercial Insurance reports