Insurance professionals need to change the focus of their conversations with small and medium-sized enterprises (SMEs) from price to value, it has been suggested.
The Chartered Insurance Institute’s (CII) 2019 New Generation Broking Group said brokers need to be clear with SME clients about what can and cannot be covered, plus include coverage enhancements to a policy that are not based on price.
The group also stated that insurance professionals need to better demonstrate their understanding of SMEs with an annual turnover of less than £6.5m and employing fewer than 50 persons when communicating with these businesses.
Kevin Hancock, chair of the Society of Insurance Broking, said SMEs are an essential area of the market in the insurance profession, bringing in more than £8.5bn in annual gross written premiums in the UK each year.
“It is vital that this key growth sector is enabled and supported by the insurance profession,” he stated. “The role both insurers and insurance brokers play in providing professional advice and expertise to SMEs to help them navigate a wide range of challenges and issues, such as emerging threats and economic volatility, has never been more important.”
Hancock argued that if brokers adopt the New Generation Broking Group’s recommendations, it will result in improved protection for SMEs and increased engagement with the profession.
The CII’s New Generation programme brings together future leaders in claims, underwriting, broking and the London Market to identify and complete a project or initiative that could make a difference to the insurance profession.
The 2020 groups are currently deciding the focus of their projects.