CGU is set to pilot a direct offering for micro-businesses.

The product, initially for trades and professional service businesses, will only be promoted through digital and social media channels and delivered online. CGU expects to be able to offer a version to brokers later.

“As we gather insights from the pilot digital direct offering for micro-SME customers, we expect to be able to offer a white-labelled SME digital platform to our partners,” the company says.

CGU CEO Peter Harmer says the company has seen a marked shift over the past five years toward direct purchasing in the micro-SME segment, with a third of micro-SMEs now purchasing direct.

“We are always looking at ways to better understand our customers and ensure we are responsive to changing market conditions,” he told insuranceNEWS.com.au. “As part of this focus, we have been investing in our innovation and digital capabilities.”

Mr Harmer says the pilot, which will run into the first quarter of next year, does not change CGU’s primary focus of distribution via brokers and authorised representatives.

“In fact, the learnings from this work will enable CGU to build enhanced digital solutions for our partners.”

CGU designed the product after setting up a project team to research SME customers.

The team found SME buying behaviour falls into three categories – owners who want to outsource the buying to an adviser; those who research online but may buy via a broker; and a group that wants to buy directly from a trusted brand.