Claims time: when the value of a broker becomes clear
Running a business can be busy, rewarding and sometimes stressful. Working with a broker can make both determining suitable insurance cover as well as making a claim quicker and easier.
At claims time, the value of an insurance broker becomes especially clear, as Vero’s SME Insurance Index 2024 reveals.
A broker’s expert guidance can help to inform insurance decision-making, which in turn can help make the claims experience smoother for business owners.
For example, brokers who ask the right questions and gain deeper insight into the specifics of a business can recommend different insurance covers that the business may need.
Brokers can also identify risks to a business and ways to reduce these risks. After all, making a claim is something all businesses would prefer to avoid! But in the event something does happen, working with a broker can reduce the stress of claiming.
There can also be ongoing value in using a broker. With deep knowledge of a business, a broker can suggest cover and identify risks the business may not have considered. And brokers can help keep clients up to date with changes in the industry that they might have missed.
What impact does this kind of ongoing partnership have on overall satisfaction with brokers? Turning again to Vero’s 2024 SME Insurance Index, the answer is clear.
Collaboration between broker and business is vital and claim satisfaction proves that. Vero Insurance's data shows that the better the perception of the claims experience, the more satisfied a business is with its broker, and collaborative relationships and informed decision making are the main reasons why.
Vero’s 2024 SME Insurance Index shows that, when businesses collaborate with their broker, 86% are satisfied with their claim. But when a business has little contact, only 55% are satisfied with their claim. This indicates how important it is for both broker and businesses to collaborate.
Figure 4.7: Claims satisfaction by broker relationship
A collaborative relationship between broker and client can enable the broker to get a solid understanding of the business and the individual risks involved. This allows the broker to write the level of cover for the business and clarify what is and isn't covered upfront. And the broker can also provide greater support and understanding at claim time.
According to the Vero’s 2024 SME Insurance Index, clarity, transparency and trust are what businesses most value. An incident affecting the business that leads to a claim can be overwhelming, but a strong relationship with a broker reduces that pressure.
Our data supports this, showing that, of those satisfied with their broker, 74% are also satisfied with their claims experience. But when a business is dissatisfied with its broker, only 57% are satisfied with their claim. This can occur when the businesses expectations don’t align with the cover itself.
Also, when businesses are dissatisfied with their claims experience, there’s an impact on how they perceive insurance companies overall. Just over half of dissatisfied claimants are cynical about insurance companies versus 38% of those happy with their claims experience.
Figure 4.6: Satisfaction with recent claim by broker satisfaction
Vero Insurance's findings clearly underscore the importance of claims as a pivotal moment impacting broker satisfaction.
Price is another variable in the relationship of trust between brokers and businesses. Where businesses see their broker bringing value, they are less concerned about the cost. But where businesses are dissatisfied with their claim, 92% see price as an issue with their insurer - indicating price-based decisions have been at play.
It is therefore crucial for brokers and businesses to collaborate and form strong relationships. This approach is key to helping businesses see the value of insurance beyond price.
Brokers can offer a broad skill set, and where businesses recognise that, their trust grows. That’s especially true at claim time. A third of satisfied claimants say they trust their broker to help them find the right insurance, versus only 11% of dissatisfied claimants. And dissatisfied claimants are more likely to use a broker for speed and convenience, or specific cover only. Satisfied claimants don't tend to do this as often. So, if brokers effectively communicate the breadth of their skills and service, claimant satisfaction improves, and stronger relationships grow.
Broker satisfaction is at an all-time high, as the Vero 2024 SME Insurance Index confirms in one of its major findings. To maintain this, brokers should emphasise their insight, skills and service far beyond the convenience factor that comes with using a broker.
It’s clear that satisfaction hinges not only on price, but also on extra guidance, industry insight and support at claim time.
Finally, the Vero’s 2024 SME Insurance Index shows that when businesses need to make a claim, client/broker relationships can be either strengthened or strained. There are many reasons a business may need to claim. And whether the impact is large or small, a claim is unexpected and can be stressful. It’s then that brokers can really guide and demonstrate their value.
For more information, watch Kira Pellicano, Head of Commercial Claims, Commercial & Personal Injury Insurance, Vero Insurance, discuss the value of brokers during claims here:
Or, get the full range of insights from the Vero SME Index, watch the webinar or download the report.
Disclaimer: Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance. Read the Product Disclosure Statement before buying this insurance. Go to vero.com.au for a copy. Target Market Determination also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you or your business before acting on it. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries. In accessing this website, you agree to the Online Terms.
Vero Insurance (Vero) has prepared the Vero SME Insurance Index Report (Report) & Webinar. The information in the Report & Webinar is general information only and is not intended to be relied upon – please make your own enquiries. Subject to any rights you may have under any law, Vero and its related bodies corporate do not assume or accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, relating to the Webinar & Report. Vero and its related bodies corporate do not guarantee the accuracy, reliability, completeness, or currency of the information provided. The Webinar & Report are not a recommendation or statement of opinion about whether a reader or viewer should acquire insurance from Vero (or its related bodies corporate) or services from any insurance intermediary or otherwise alter their business arrangements. The Webinar & Report are based on commissioned research by Vero and should not be used as the basis for any decision in relation to the acquisition or disposal of insurance products or the use of broker services. Readers should confirm information and interpretation of information by seeking independent advice.
