Economic impacts on business insurance
Uncertain economic conditions have the potential to impact insurance behavior and SMEs decision making around purchasing it.
Stories of economic downturn abound in the media, and a range of economic data suggests that there are tough economic times ahead. So how is this affecting SMEs, and will it impact their insurance behavior?
Data from the Vero SME Index suggests that conditions are mixed and uncertain. We appear to be in a low growth environment, with less than 1 in 5 businesses’ revenues growing over 5%. Over 40% of businesses surveyed say that their revenue declined over the last year, while the same proportion say that they’ve experienced low growth of less than 5%.
Key Insights
- SME confidence in their business prospects varies greatly in the current economy.
- Over 60% of SMEs report that they would make changes to their insurance arrangements due to declining revenues.
- Medium-sized businesses are more likely to plan on buying insurance direct than smaller businesses if their revenue declines.
Download the report to see the full findings for 2020 and what they mean for brokers.
Source: The SME Insurance Index report research was conducted by BrandMatters.
See www.brandmatters.com.au
