Survey shows how SMEs benefit from brokers

Survey shows how SMEs benefit from brokers

While no one likes to think about claim time, it’s the point at which the idea of insurance becomes a reality – when risk assessment and cover are put to the test.

New research by Vero involving 900 small business owners and insurance decision makers across NZ shows that while claims outcomes are influenced by a number of factors, there is a strong connection between SMEs getting in-depth information about insurance options from brokers and having positive claims experiences. 

On the flip side, small businesses relying on buying their insurance policies direct had significantly higher levels of dissatisfaction come claim time.

69% of SMEs who reported being happy with their claims experience were also satisfied with their broker, compared with 51% of SMEs who weren’t happy with their claim. And 82% of businesses surveyed who reported a high claim outcome, also reported having a collaborative relationship with their broker.

What does all this mean? Brokers and advisers who provide expert advice and the right cover are more likely to have clients who have a positive claims experience. The key factor is ensuring brokers are working alongside business owners to find the insurance that best fits their needs, providing in-depth analysis and information on the options available, and educating them on what to expect during the claims process. 

If you’re a small business, here are our tips to ensure you’re getting the best from your broker:

  • are they taking the time to understand you, your assets, businesses and exposures when arranging their policies?
  • do they have access to broader policies than are available off the shelf to direct customers?
  • when a claim happens, do they explain the process and what can be expected?
  • do/will they actively advocate for you if there is an unexpected surprise at claims time

Remember – if a SME doesn’t have a broker and something goes wrong with a claim, they can only call on the courts, disputes tribunal or one of the independent dispute resolution services for help. Having the advice of a broker avoids the risk of that unnecessary stress, time and expense.  

To find out how a broker can help your small business, contact your local IANZ broker for a chat.

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

Business Interruption Insurance

Business Interruption Insurance

From your family and employees to customers and suppliers, there are a lot of people who depend on your business opening its doors each day.

Cyber Insurance

Cyber Insurance

Technology has never been so deeply entwined in our businesses. While it delivers significant efficiencies and convenience, it also comes with significant cyber risks.

Find your local Insurance Broker

Talk to your local Broker about your insurance needs and to get a quote