Brokers identify ways to increase SME engagement
Insurance professionals need to change the focus of conversations with small and medium-sized enterprises (SMEs) from price to value. This is the conclusion of the Chartered Insurance Institute’s 2019 New Generation Broking Group, which has come up with recommendations for how the insurance profession can increase engagement with SMEs.
The group concluded that insurance professionals need to be clear with SME clients about what can and cannot be covered plus include coverage enhancements to a policy that are not based on price.
The New Generation Broking Group also stated that insurance professionals need to better demonstrate their understanding of SMEs with an annual turnover of less than £6.5 million ($8.4 million) and employing fewer than 50 persons when communicating with these businesses.
Kevin Hancock, chair of the Society of Insurance Broking, said: “SMEs play a fundamental role in the UK economy. They are also an essential area of the market in the insurance profession, as they bring in more than £8.5 billion in annual gross written premiums in the UK each year.
“It is vital that this key growth sector is enabled and supported by the insurance profession. The role both insurers and insurance brokers play in providing professional advice and expertise to SMEs to help them navigate a wide range of challenges and issues, such as emerging threats and economic volatility, has never been more important.
“The action points identified by the New Generation Broking Group are ones that if insurance professionals adopt as part of how they conduct themselves will result in improved protection for SMEs and increased engagement with the profession.”
The Chartered Insurance Institute’s New Generation programme brings together future leaders in claims, underwriting, broking and the London Market to identify and complete a project or initiative that could make a difference to the insurance profession. The 2020 groups are currently deciding the focus of their projects.
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