Sentiment towards insurance is shifting, with more businesses keen to insure every risk despite grappling with economic pressures, the annual Vero SME Insurance Index has found.

Vero Head of Distribution Anthony Pagano says the survey findings, released last week, are a good sign for brokers whose job is to provide clients with appropriate risk advice.

Good communications and constantly checking-in with clients are key, Mr Pagano says, as he urges brokers to stick with the basics that have led to record levels of satisfaction from businesses who use an adviser for their insurance needs.

About 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.

“Make sure you understand your client’s business … every broker needs to really do that and the only way you can do that is by engaging with your customers,” he told insuranceNEWS.com.au.

“Don’t just rely on the information they have provided, don’t just rely on their websites, don’t just go with what they have historically take out in their insurance program.

“Brokers should be on site, they should be conducting appointments, have in-depth conversations whether verbally or in writing.”

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.

And in a sign that insurance is top of mind for many, 40% of the 1500 SMEs and 250 large businesses polled agree that recent events such as the pandemic and natural disasters have made them question their level of coverage. In 2014, only 23% had similar sentiments.

This year’s survey also found about 51% of businesses claim to have made changes to their insurance as a direct result of the economic conditions. The most common change made is increasing excess levels, presumably to reduce premiums and therefore take pressure off expenses.

Vero says it is important that any changes made are with full consideration of the business’ risk profile, and therefore brokers can play a critical role to ensure that businesses make appropriate insurance decisions. About 10% say they have reduced their sums insured.

Mr Pagano 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,” he told insuranceNEWS.com.au. 

Click here for more from the index.