Younger SME owners in New Zealand do business differently to the older generation, and most do not believe they get value out of their insurance, according to Vero.

The insurer’s New Zealand SME Index shows owners aged under 50 are more price-conscious and cynical about insurance companies and brokers, and increasingly expect to do business online.

About 65% of under-50s believe they do not get value for money from their insurance, compared with 45% of over-50s.

Some 44% of under-50s research insurance online, compared with 26% of over-50s.

Price is the most important factor for 56% of under-50s, compared with 33% in the older group. About 59% of under-50s buy from a broker, compared with 56% of over-50s.

The younger group are less satisfied with their brokers, and change them more frequently. 

Vero EGM Customer Experience Campbell Mitchell says brokers need to understand and respond to the generational change under way.

“People under 50 are creating and establishing businesses that will become the future of our economy,” he said. “And our latest research has found they want to do business in a different way to the over-50s who have dominated the business world for so long.”

The SME Index gives brokers and advisers strategies to engage, attract and retain such owners, including embracing and integrating digital capabilities and reinforcing the unique benefits they bring to customers.