The number of small businesses using brokers has dropped, according to this year’s Vero SME Insurance Index.

Of the 1500 companies surveyed, 44% used a broker to buy their last insurance policy, compared with 50% last year.

Suncorp Commercial Insurance National Manager Broker Distribution Sam Sanfilippo says the findings reflect “an insurance environment in the grip of significant evolution”.

He says younger businesspeople, enabled by digital platforms, are striving to be more involved in the insurance-buying process.

They tend to be confident, cynical and highly price-conscious.

In addition, older men – brokers’ traditional core client base – are “late adopters” of technology. Even if they do not make their final purchase online, they are using the internet to search for insurers and evaluate options.

“The evolving environment of how businesses want to obtain their insurance means the insurance industry as a whole – and brokers in particular – need to adapt to new styles of interacting with customers,” Mr Sanfilippo said.

The report says many direct customers will consider using a broker, and most will use internet searches to find one, highlighting the need for brokers to invest in a strong online presence.

Vero says it will release a series of tools to help brokers, the first of which is an animated video reinforcing the benefits of broker use.

“At the end of the day, no matter what technology is used in the process, it always comes down to the expertise the broker brings to helping their customer,” Mr Sanfilippo said.

“The [Vero] index indicates that the strong professional expertise brokers bring is a key reason for looking for and using a broker.”

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