Client satisfaction with brokers is at a record high while cost pressures and tough economic conditions have prompted more businesses to question their coverage, according to the annual Vero SME Insurance Index.

The latest index, released today, shows 87% of broker clients gave their risk adviser a score of at least eight out of 10, up from 78% last year and the previous record of 84% in 2022.

About 40% of the 1500 SMEs and 250 large businesses polled say factors such as the economic climate and natural disasters in the past few years have made them question their cover.

For the first time since the index was launched more than 10 years ago, businesses were asked to choose their approach to insurance: 76% say they try to insure every risk where possible, while only 6% insure the bare minimum.

There has been a marked increase in respondents who say insurance gives them peace of mind, up from 67% in 2019 to 82% this year.

At the same time, many businesses are experiencing impacts from unstable economic conditions, with 51% changing their insurance as a direct result. About 83% are considering changes in the future, underlining the importance of open communication between brokers and their clients, Vero says.

Vero Head of Distribution Anthony Pagano says this year’s survey shows “the trend is our friend at the moment”.

“We’ve seen a shift in businesses moving from those insurance cynics to security seekers ... and we’re seeing that through the client satisfaction rate,” he told insuranceNEWS.com.au.

“The good news is that there are plenty of positive trends happening our way. However, there is this underlying concern about how we make sure clients have got the right cover, have the right sum insured that reflects their current business environment.”

He says insurance is “far from simple” and a broker’s role is to “make the complex simple”.

“I do feel that the brokers have now made their mark. They are not just insurance advisers but risk advisers as well.”

The survey found 81% of businesses agreed when asked if they were interested in exploring risk mitigation measures, and 72% like explanations about coverage and risks before deciding on insurance. Vero says this suggests brokers need to have conversations about risk, particularly with medium or larger businesses and younger clients.

This year’s survey also asked for the first time how businesses feel about commissions. About 79% are comfortable with brokers receiving commissions for their services and advice. Only 4% are uncomfortable.

However, most businesses want brokers to be open about the commissions and fees they receive, with 62% saying it is “very important” that a broker discloses these, and a further 35% saying it is “somewhat important”.

Click here for the index.