About 10% of UK businesses would skip dealing with intermediaries to buy their insurance direct, according to a new report.

QBE’s third annual UK business sentiment survey shows a third of SME businesses would go direct to an insurer, while 10% feel insurance brokers provide little value.

The report highlights a lack of awareness about the role of brokers and a tough economic climate as major reasons behind SME apathy towards brokers, and warns the insurers and intermediaries must “work together to promote the benefits of their offering”.

SMEs in the UK are also disinclined to ask their insurer or broker for advice on mitigating risk, and are also increasingly buying insurance on price rather than value; 75% report competitive pricing as the deciding factor in taking out insurance, followed by financial security and industry specialisation.

“Given the economic environment, it is unsurprising that price is the top priority for UK SMEs,” QBE European Operations MD Terry Whittaker said. “However, as an industry there clearly is work to be done in explaining the added value that a quality insurance service from brokers and insurers can deliver.”