Businesses must have better conversations with their insurance brokers or risk being left exposed, according to Aon.

It has found “concerning deficiencies” in the way companies research insurance needs.

In a survey of about 100 businesses with turnovers between $15 million and $100 million, it found “colleagues’ recommendations” is the highest-ranked information source, with better alternatives such as industry associations and brokers lagging well behind.

“We all value the opinion of friends and colleagues when looking for a hotel room, but it isn’t the best way to research insurance,” Aon Head of Marketing Andrew Gordon told insuranceNEWS.com.au.

He says businesses are under pressure to grow and deliver returns, forcing issues such as risk to “take a bit of a back seat”.

Conversations with brokers may be avoided for fear of being talked into paying more, Mr Gordon says. Such an approach is dangerous, with the typical business underinsured to the tune of 25% to 45%.

“Everyone needs to lift their game,” he said.

The correct approach begins with “a robust and open conversation with a reliable information source”.

“Many businesses report frustration with a number of elements of their broker relationship, including infrequent transactional-style contact, when a full and frank exchange of relevant information between broker and business is required.”

Aon has launched an education campaign including a website providing practical guidance on the insurance sourcing process.

“We see it as a strong start, in some ways, to a new kind of practice for our industry,” Mr Gordon said.