United Kingdom (UK) SME Insurance Distribution Dynamics by Channels and Future Market, 2023 Update

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

United Kingdom (UK) SME Insurance Distribution Market Report Overview

The number of private businesses in the UK increased by 0.8% to reach a value of 5.6 million, in 2023, despite the economic challenges in recent years. This report looks at how SMEs in the UK are buying a range of commercial insurance products 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 providers.

Key Distribution Channel ·        Brokers

·        Direct Channels

·        Banks

·        PCW

Key Factors for Provider Selection and Customer Retention ·        Cost of Policy/Price

·        Reputation of Provider

·        Transparency of Pricing

·        Established and Known Brand Name

·        Previous Relationship with Company

Enquire & Decide Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.

UK SME Insurance Distribution Market Critical Success Factors:

  • Integrate digital or AI tools to improve customer satisfaction rates: Larger SMEs are particularly interested in making use of AI tools to assess their insurance needs and recommend coverage options. Integrating new, sophisticated technology can help reduce costs in the long run, as well as improve customer service with more accurate risk profiling and faster onboarding.
  • Maintain strong partnerships with brokers and banks: Banks play a far more significant role in the distribution of commercial insurance than personal lines products. In 2023, banks accounted for 19.9% of SME insurance distribution, with this figure increasing to 23.4% of medium companies. Maintaining strong partnerships with both banks and brokers will maximize an insurer’s chances of getting their products in front of new customers.

Buy the Full Report for More Critical Success Factors of the UK SME Insurance Distribution Market

Download A Free Report Sample

UK SME Insurance Distribution Market Segmentation by Channels

Brokers is the most important distribution channel in the SME insurance distribution market

The key channels in the UK SME insurance distribution market are brokers, direct channels, banks, and PCW. The broker channel remained the most popular among SMEs in 2023. Brokers is the key channel for distribution of commercial policies (especially as company size increases) due to their ability to provide advice, offer risk management services, and tailor product offerings for clients.

UK SME Insurance Distribution Market Analysis by Channels, 2023 (%)

UK SME Insurance Distribution Market Analysis by Channels, 2023 (%)

Buy the Full Report for More Channel Insights into the UK SME Insurance Distribution Market

Download A Free Report Sample

UK SME Insurance Distribution Market Segmentation by Factors for Provider Selection

Price was the key factor for Provider Selection in 2023

The key factors taken into consideration for provider selection in the UK SME insurance are the cost of policy/price, the reputation of the provider, transparency of pricing, and established and known brand name among others. In 2023, price remained a key factor for customers to choose a provider. For SMEs of all sizes, the cost of a policy is the most important factor when selecting a provider.

UK SME Insurance Distribution Market Analysis by Factors of Provider Selection, 2023 (%)

UK SME Insurance Distribution Market Analysis by Factors of Provider Selection, 2023 (%)

Buy the Full Report for More Provider Insights into the UK SME Insurance Distribution Market
Download A Free Report Sample

UK SME Insurance Distribution Market - Latest Developments

  • Tax cuts and rate freezes were announced in the November 2023 Autumn Statement, which will alleviate some of the cost-of-living burden for many businesses in 2024.

Segments Covered in the Report

UK SME Insurance Distribution Channels Outlook

  • Brokers
  • Direct Channels
  • Banks
  • PCW

UK SME Insurance Provider Selection Factors Outlook

  • Cost of Policy/Price
  • Reputation of Provider
  • Transparency of Pricing
  • Established and Known Brand Name
  • Previous Relationship with Company

Scope

• Brokers remain the key distribution channel for SME insurance in 2023, accounting for 43.7% of the market. However, this figure is the lowest of the past five years. Many SMEs have made greater use of PCWs in search of better deals amid the cost-of-living crisis.

• Price is the most important factor for SMEs of all sizes when choosing a provider. Over a third of sole traders say price is the most important factor to them.

• Companies are more likely to consider making changes to their policy (either cancel or switch provider) as their size increases. Medium enterprises pay the highest premiums and are therefore keenest to seek better value or cancel policies that are not bringing the best possible value to the company.

Reasons to Buy

  • Determine the purchasing channels and methods used by SMEs of all sizes in 2023.
  • Understand critical factors for SMEs to select an insurance provider.
  • Improve customer retention by identifying key reasons for SMEs to change providers for various products.
  • Ascertain the effect of cost-of-living crisis on SMEs’ decision to switch or cancel their policies.
  • Analyze the promptness of SMEs to use AI to improve their customer experience in the purchasing journey.

Table of Contents

Executive Summary

Critical Success Factors

The UK SME Landscape

Purchasing Channels

Provider Selection and Customer Retention

Future Switching and Cancellations

Openness to AI

Appendix

Frequently asked questions

United Kingdom (UK) SME Insurance Distribution Dynamics by Channels and Future Market, 2023 Update standard reports
Currency USD
$3,450

Can be used by individual purchaser only

$10,350

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

United Kingdom (UK) SME Insurance Distribution Dynamics by Channels and Future Market, 2023 Update was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
Worldline - Competitor Profile
$350 | March 2024
Financial Services
New
Huawei Pay - Competitor Profile
$350 | April 2024
Financial Services
New
Kuwait Cards and Payments - Opportunities and Risks to 2028
$2,750 | April 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at United Kingdom (UK) SME Insurance Distribution Dynamics by Channels and Future Market, 2023 Update in real time.

  • Access a live United Kingdom (UK) SME Insurance Distribution Dynamics by Channels and Future Market, 2023 Update dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.