SME business decision-makers are wary of the insurance industry but not unhappy with their current cover, according to a new Vero survey.

The company surveyed 600 SME decision-makers, industry experts and brokers for its SME insurance index – the first survey of its kind.

Suncorp EGM Intermediated Distribution Andrew Mair says the industry needs to “re-emphasise its value” to SMEs following the impact of last summer’s disasters.

Vero’s research is an attempt to help brokers gain an overall view of the market and what SMEs are thinking, he says.

Nearly 40% of SMEs say they are more confident about business in the coming year but still unsettled, while 55% say they remain the same or are feeling less confident.

Some 89% of respondents were generally happy with their current insurance but have mixed feelings about whether they are getting value for money, 40% said they’re not, 33% said they are and 27% weren’t sure.

Two-thirds of the SME decision-makers polled expect the cost of their insurance to increase – and of those almost half expect the rise to be 10% or more. 

Pricing was often the reason given for changing insurer, with “getting better cover” the second most common reason. Medium businesses were less price-sensitive than small and micro-businesses.

Despite price sensitivity, 68% said they were willing to pay more for better service.

Views on using brokers varied according to whether or not the SME used one. Some 56% of those not using a broker thought it would cost more to buy the equivalent insurance from them, while those using brokers tended to believe it would be the same price or more expensive to purchase insurance direct.

Mr Mair says brokers should attempt to “create a relationship in which they can demonstrate the partnership they offer, or they could show the more tangible benefits brokers can offer in the form of better, more appropriate, more cost-effective or more tailored coverage”.