BONUS INSIGHTS: ‘BROKER VALUE’ WITH MICHAEL COOKE
As part of our “3 Insights" digital series, we were lucky to be joined by Executive Manager Intermediated Packages Portfolio Michael Cooke.
An experienced portfolio manager who’s worked across a range of propositions, Michael shared some fascinating insights from the 2022 Vero SME Index and discussed what brokers can do to continually add value for customers – especially at renewal time.
We also spoke with Michael about why some SMEs choose to buy insurance cover direct, instead of through a broker.
“The key is to demonstrate the value of the advice provided.” – Michael Cooke
Why do some SME customers choose to not purchase insurance through a broker?
“According to the 2022 Vero SME Index the biggest single reason SME customers choose to buy their insurance cover direct or through a mix of channels is the belief they can do it easily themselves with the second biggest reason being the actual or perceived lower cost.”
What’s the opportunity here for brokers?
“Brokers that can demonstrate to customers they can meet their needs by advising on and arranging their complex business insurance needs across all covers – through an easy and cost-effective process – will have the best opportunity to continue to grow their customer base.
The key is to demonstrate the value of the advice provided, which is important at the time of placing policies to meet business customers' complex needs, and particularly at the time of a claim.”
One thing Michael discussed outside of the video, which we’re glad to be able to share here, involved the most common risk concerns SMEs have – and the opportunity involved for brokers.
What are the top risk concerns for SME businesses?
“As identified by the 2022 Vero SME Index survey, the top 12 risk concerns for SME businesses are:
- Being sued
- Workplace accidents and employee safety
- Fire or flooding on premises
- Theft (including employee theft)
- Natural disasters
- Being unable to trade for long periods of time
- Equipment failure or breakdown
- Adverse publicity or reputational damage
- Loss or damage to goods in transit
- Tax audit
- Cyber attack
- Employee fraud or negligence
The survey identified that there are significant gaps between these concerns and the reported insurance cover SME businesses have. For example, only 47% of SME businesses reported having goods in transit cover, 41% in business interruption cover and 32% in machinery and equipment breakdown cover.”
What’s the opportunity here for brokers?
“This represents a significant opportunity for brokers to educate SMEs about the potential to cover these risks through insurance cover, as part of a broader risk mitigation strategy.”
It was fantastic to hear from Michael about the value all brokers can add for clients, especially during the renewal period – he was incredibly generous with his time and insights.
If you have any further questions about the topics discussed, explore our Vero website. Or, if you’d like to read the 2022 Vero SME Index for yourself, click the link below.
Read the 2022 Vero SME Insurance Index here: SME-Insurance-Index-Report-2022.pdf (vero.com.au)
Read the 2023 Vero SME Insurance Index here: SME Insurance Index | Vero Insurance – One of Australia’s Largest Commercial Insurers
The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it - please make your own enquiries.
