Vero’s 14th SME Insurance Index shows client satisfaction with brokers has dropped to 69%, from a record high of 87% a year earlier. 

Vero says the number of businesses rating their broker five or below out of 10 was stable at 5%, and the decline in satisfaction is largely driven by microbusinesses of one to four employees, while satisfaction remains “very high” among larger businesses. 

There was a higher proportion of six or seven ratings, which Vero says “demonstrates an increase in those who are neutral rather than dissatisfied”. 

“While this number is a significant drop, 69% satisfaction is still a very strong score that compares favourably with satisfaction levels before 2022,” Vero said.   

The survey also found only 10% of Australian businesses buy most of their insurance through a broker, down from 27% in 2018, with a significant shift towards using a mix of channels.  

Direct purchase is becoming more common for straightforward products including commercial motor, workers’ compensation and travel insurance.  

The index showed 74% of SMEs use a broker for some but not all covers. Key reasons given for working with a broker are expert knowledge and advice (88%), great service (82%) and assistance in claims (48%). 

“Brokers are essential, with their expertise integral to ensuring clients have a broad view of their risks to guide them to make informed decisions,” Vero head of distribution Anthony Pagano said. 

“As economic pressures, technological advancements and emerging global challenges reshape the landscape, businesses are increasingly looking to the insurance industry not just for coverage, but for strategic support in managing complex and evolving risks. Insurance brokers are at the forefront of this shift.”  

The index is based on a survey of 1750 SMEs across Australia.