Vero releases issue two of the 2017 NZ SME Insurance Index

Published: Thu 31 Aug 2017 09:20 AM
Vero releases issue two of the 2017 New Zealand SME Insurance Index
Vero has released the second issue of the New Zealand SME Insurance Index, which explores how age affects the attitudes and behaviour of small- to medium- sized business owners (SMEs)
The first report in the Index suggested that the age of a SME might affect their attitudes towards insurance. Issue 2 has uncovered notable differences of attitudes towards insurance between SMEs under and over 50 years.
Similar behaviour, but very different attitudes
The research showed that purchasing behaviour for SMEs under and over 50 is not markedly different. In fact, slightly more SMEs under 50 reported purchasing insurance through their broker or adviser.
But there is a significant difference in attitudes between the two age brackets.
SMEs under 50 were much more price conscious, more cynical about the value they are getting from insurance companies and generally less satisfied with their broker or adviser.
Most importantly, SMEs under 50 increasingly want to research and do business online, and their expectations of a digital service offering are being set by other industries.
“People under 50 are creating and establishing businesses that will become the future of our economy,” said Campbell Mitchell, Executive General Manager Customer Experience.
“And our latest research has found that they want to do business in a different way to the over 50s who have dominated the business world for so long. It’s important for insurance brokers to understand and respond to the generational change that’s currently underway.”
SMEs under and over 50 - the differences
• 59% of SMEs under 50 buy insurance from a broker, compared to 56% of SMEs over 50
• 44% of SMEs under 50 research insurance online, compared to 26% of over 50s
• 65% of SMEs under 50 say they don't get value for money from their insurance, compared to 45% of over 50s
• 56% of SMEs under 50 say price is the most important concern when it comes to making insurance decisions, compared to 33% of over 50s
• SMEs under 50 years are less satisfied with their broker
• SMEs under 50 change their broker more frequently
Issue two also highlights pro-active strategies for brokers and advisers to engage, attract and retain SMEs under 50. These include:
• Embracing and integrating digital capabilities
• Reinforcing the unique benefits you bring to customers
For details on these strategies, insights and more, check out issue two of the Vero SME Insurance Index.
Read the full report

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