While many brokers focus on servicing consumers’ insurance needs in what is a very competitive market, they could be missing a trick by not trying to persuade business owners and finance managers to come to them for their personal insurance.
According to GlobalData’s 2016 UK SME Insurance Survey, 11% of those responsible for arranging the insurance for their business use the same broker for their personal needs. As SME includes businesses that range from the self-employed to those with up to 250 employees, we are dealing with the business owner up to a finance director, who is likely to have a wide range of insurance needs and could be an affluent customer.
While 11% may seem a small opportunity, it is worth remembering that SMEs make up a significant proportion of the UK economy. The Department for Business, Energy & Industrial Strategy (BEIS) reported a total of 5,389,450 SME organizations operating in the UK in 2015, which means that nearly 600,000 SMEs bought their personal insurance from their company broker.
This offers a real opportunity/competitive advantage to those brokerages that offer a service which crosses commercial insurance with general insurance and life assurance. They are in a position to capitalize on an established relationship where they have already demonstrated good service and expertise, so taking the next step should be easy.