Key findings from the index include:
- Revenue Decline: Approximately 47% of businesses reported a downturn in revenue, with small and micro businesses being the most affected.
- Ad Hoc Risk Management: A staggering 75% of small businesses admitted to adopting an 'ad hoc' approach to risk management, lacking formalised processes.
- Business Continuity Planning (BCP): One-third of small business owners were unfamiliar with BCP, and an additional 25% were aware of the term but uncertain about its implementation.
Anthony Pagano, Vero's Head of Distribution, emphasised the necessity for robust risk management frameworks and clear operational plans to navigate disruptions such as cyber incidents, natural disasters, and supply chain issues. He highlighted that over half of the surveyed businesses received risk advice from their insurance brokers, with the majority acting upon this guidance.
The index also shed light on the role of insurance brokers, revealing a stabilised satisfaction rate of 69% among clients. Notably, 95% of heavy broker users expressed satisfaction with their claims experience, underscoring the value brokers bring in managing complex insurance landscapes.
In terms of technological adoption, the survey indicated a growing comfort among businesses with the use of artificial intelligence (AI) in insurance processes. Over half of the respondents were comfortable with brokers employing AI for tasks such as using chatbots (64%), comparing insurance products (72%), and facilitating faster quoting through pre-filled forms (74%). However, comfort levels dropped to 40% when it came to AI supporting claim outcome decisions, highlighting the continued importance of human judgment in critical decision-making processes.
These insights from Vero's 2026 SME Insurance Index serve as a clarion call for small businesses to prioritise structured risk management and business continuity planning. By leveraging the expertise of insurance brokers and embracing technological advancements judiciously, SMEs can enhance their resilience and navigate the complexities of the modern business environment more effectively.
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
