Satisfaction levels on natural disaster claims handling are significantly lower than for general claims but businesses that use brokers feel better informed about possible impacts from catastrophes, the latest release of data from the annual Vero SME Insurance Index shows.

Almost one in five SMEs say they have been affected by a natural disaster in the past three years and of those bushfires impacted more than half. Severe storms affected 30%, hailstorms 24%, floods 17% and cyclones 13%.

A relatively large 34% of those impacted were dissatisfied with their natural disaster insurance experience, while 28% were neutral. That compares with 20% dissatisfied on general claims.

“This research doesn’t identify specific reasons for this, but possible explanations could include emotional impact related to natural disasters, coupled with the high volume of claims during an event which can impact response times,” the report says.

The main reasons for dissatisfaction after disaster claims were lack of process clarity and the time taken, Vero says, while other issues included partial payments, lack of communication and inadequate cover.

About 67% of broker clients felt informed on natural disaster cover prior to an incident, compared to 59% of direct buyers.

This year’s index introduced a new question asking SMEs about the likely future impact of natural disasters on their businesses. A majority expect at least a moderate impact, with around a third saying they expect no impact at all.

“Brokers have a clear role to play in helping SMEs feel informed about natural disaster risk, and conversations about these risks are appreciated and desired for many,” the report says.

The nationwide survey also looks at changing communications, particularly in the context of the COVID-19 pandemic.

About 26% of respondents say there have been changes, with 62% nominating greater use of email, 53% more phone calls and 46% pointing to web-based tools such as Skype and Zoom.

The survey finds that for 56% of broker clients there has been no change, while18% say they have not been in touch with their broker.

The results vary widely by region, with 39% of Victorian broker clients seeing a change compared with 38% in SA, 19% in NSW and 4% in WA.

Emails are mostly the favoured channel, but for more complex tasks such as risk profile assessing or discussing insurance needs, phone or face-to-face is seen as more likely to become the preferred channel of communication.

“Notably, very few broker clients prefer web-based communication tools for any tasks, suggesting that these channels may not necessarily remain as widely used as they have been during the pandemic,” the report says.

Nevertheless, the data is polarised, with just over half of broker clients saying they would rather go back to face-to-face meetings once COVID restrictions are lifted while 41% say that they would like to continue to use web-based channels.

Those in favour are more likely to be city-based, female, under 45, tertiary educated and from larger more newly established businesses.

The COVID-19 pandemic has reportedly seen a shift to “localism” where consumers prefer to buy from nearby suppliers, but views vary in broking.

Medium sized business are more likely to say they use a broker in their local area or surrounding suburbs, while “localness” stands out as a priority in Queensland and WA.