Many small business owners who buy cover online will consider using a broker, this year’s Vero SME Insurance Index has found.

Business-owners feel overwhelmed by the amount of information available online, and some direct buyers reported a bad experience when making a claim, says Suncorp Commercial Insurance EGM Distribution Andrew Mair, who launched the report at the Steadfast Convention in Melbourne this afternoon.

But Vero’s third annual survey finds more SMEs have moved to online purchasing from last year, with 50% exclusively buying direct and 40% using a broker only. This compares with 45% buying direct last year and 42% using a broker. The rest used a mix of direct and intermediated.

Vero interviewed 1518 SME insurance decision-makers in September to compile the report.

It found that of those who use brokers, “a massive 92% say they are satisfied or somewhat satisfied with the service they are receiving”, said Mr Mair.

But only 45% think their broker provides expert knowledge and advice, and 53% say their broker saves them time so they can focus on their business.

Mr Mair told insuranceNEWS.com.au the results show that there are opportunities for brokers to demonstrate their value and relevance.

“The challenge is how to get that message out to all the small businesses,” he said.

Vero will run broker workshops later this year to help brokers promote their expertise and manage client relationships.

The survey found the clients most likely to look elsewhere are those whose broker had not contacted them within the previous 12 months.

Mr Mair says the challenge for brokers is to tailor client contact to meet every need from clients wanting a personal visit to others who do everything online and are happy with electronic communications.

“Everyone is looking for efficiencies in how they manage their portfolios of clients but I think you have to be cautious about taking relationships for granted,” he said.

“Once again, broker clients have told us that they would like more contact with their broker.”

About 63% said they wanted contact two or three times a year, when only 50% had that level.

Last year’s survey found the owners most likely to buy online were women and young people, but this year’s results found men, people aged 40+ and business that are small, as opposed to medium-sized, are buying direct.