Economic uncertainty continues to challenge businesses, with 49% of Australian companies reporting a decline in revenue over the past year, according to the forthcoming Vero 2025 SME Insurance Index, an independent survey of 1,750 Australian small to enterprise businesses.  
 
Many SMEs never reopen after a disaster, and it is clear reducing the risk of business disruption can be especially valuable in the current economic climate.  
 
From the impacts of natural disasters and black swan events, to evolving regulatory pressures and economic uncertainty, the Australian insurance market has experienced significant turbulence in recent years. In the 2023-24 period, insurers incurred $2.19 billion in claims from declared extreme weather events, according to the Insurance Council of Australia's Insurance Catastrophe Resilience Report 2023-24.

Over the past five years, the average annual cost of extreme weather claims has more than doubled to $4.5 billion, driven largely by the growing cost of floods. 

There is a pressing need for solutions that go beyond traditional coverage and address the root causes of risk. Nobody wants to go through the process of making a claim and experiencing downtime in their business.  
 
There’s a growing sophistication among businesses and insurers in managing risk and a pull toward resilience.

“This trend is something we have recognised and responded to in the market,” says Haydn Greentree, Executive Manager of Vero Specialty Lines.

“Whilst historically the market has focused on providing a robust experience after a loss occurs, we’ve taken further steps to more pro-actively help customers reduce risk.”  
 Vero Specialty Lines’ Higher Hazard Property product exemplifies this approach, offering tools and resources to help businesses focus on loss prevention and mitigation.

“We’re not focused on price as the sole driver of this offering,” Greentree explains. “Most clients in this space are looking for insurance capacity for their higher-severity risks, and we’ve built a comprehensive proposition to help cater to some of their complex needs.”
 
The refreshed Higher Hazard Property offering, launched on February 3, is second in the lineup to be introduced under the Vero Specialty Lines banner. It was developed in response to strong demand for more comprehensive risk management solutions to cater to complex property risks in higher-hazard occupations such as warehousing, manufacturing and retail of plastics, chemicals and timber. 
 
Working with brokers to understand the unique complexities of their clients’ operations, the experienced higher-hazard underwriters provide a solution-focused approach to help address specific risks - all underpinned by a comprehensive risk management proposition. This collaborative process provides businesses and brokers with practical tools to help them proactively manage their exposures. 
 
A key feature of the Higher Hazard Property offering is its emphasis on risk prevention. Most eligible clients will receive a detailed risk report* produced by Vero’s specialist risk engineering team, offering clear insights into potential vulnerabilities and recommendations to help address them. These reports are supplemented by access to a Risk Mitigation program, leveraging trusted suppliers to assist businesses to act confidently on risk minimisation strategies. 
 
“In landing on products under the Vero Speciality Lines banner, we’re being very proactive to engage with the market to ensure we’re providing products in areas where brokers need solutions,” says Greentree.

This collaborative approach has helped ensure that the product can meet the needs of both brokers and their clients, providing a combination of robust insurance and proactive risk management strategies. 
 
The needs of brokers are also changing. Talent shortages and the loss of institutional knowledge are a concern in the industry. Data from the Insurance Council of Australia shows 58% of insurance employees are over 45 years old, while only 18% are under 34. By 2030, about 30% of insurance professionals will reach or exceed retirement age.  
 
Recognising the critical need for expertise in managing complex risk portfolios, Vero is developing an accredited product training suite to equip brokers with a deeper understanding of products to better support brokers in providing meaningful advice to their clients.  
 
“There’s been significant people movement within and across companies over the last five years. A lot of senior experience has moved between firms, retired or is planning to transition to retirement whilst a large number of less experienced people are coming into the industry,” Greentree explains. “We’re building out this product training suite to help brokers better understand our policies so they can serve their clients more effectively.” 
 
While many businesses do not have formal risk management processes, there is evidence they may be interested in finding out more about them, particularly if they can see a benefit. According to the upcoming 2025 Vero SME Insurance Index, “81% of those who rarely or never conduct risk assessments say that they are interested in ways to decrease risks so they can reduce insurance costs”. 
 
This highlights a significant opportunity for insurers to educate clients about the advantages of proactive risk management. By demonstrating how small, actionable steps can lead to operational stability that benefit premiums, insurers such as Vero are helping businesses take the first steps towards greater resilience. 

This forward-thinking approach is bolstered by Vero’s award-winning claims service, which plays a critical role in supporting brokers and clients. Vero has won the Gold Mansfield award five years in a row for claims excellence, ensuring a seamless experience is backed by proactive communication and dedicated expertise. 
 
As inflationary pressures and sluggish growth continue to strain the economy, proactive risk management has become a necessity. Products such as Vero’s Higher Hazard Property demonstrate how tailored risk management solutions, proactive education and customer-centric services can bridge the gap between business challenges and resilience. 
 
Brokers are encouraged to explore how these solutions can deliver value to their clients while reinforcing their expertise in a competitive market.

Disclaimer:
This article is sponsored by Vero Insurance. The information in intended to be general nature only. Subject to any rights you may have under any law, Vero Insurance and its related bodies corporate do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries. 

Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance. Limits, conditions and exclusions apply.

*Risk engineering report is limited to up to one report per policy period and is not available in regional areas and is subject to Vero Insurance’s underwriting guidelines.