Businesses increasingly look to the insurance industry not just for coverage but for strategic support managing complex and evolving risks, and brokers are “at the forefront of this shift”, Vero says.

Vero’s 14th SME Insurance Index says effective risk management has never been more important, in “a world of escalating risks and constant change”. 

“It’s clear that brokers play an essential role in times like these – when business owners and operators are faced with so many decisions, they can be overwhelmed by the weight of it all, which can lead to inaction,” 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. Their expertise is becoming integral to helping clients make informed decisions and protect what matters most.” 

The survey of 1750 SMEs across Australia found 74% use a broker for some cover. Key reasons given were expert knowledge and advice (88%), great service (82%) and assistance in claims (48%).

Providing guidance on complex emerging technologies such as artificial intelligence could be a “powerful demonstration of the value brokers bring as risk experts”, Vero says.

As businesses increasingly embrace AI, electric vehicles, lithium-ion batteries and solar panels, brokers can demonstrate risk expertise by providing proactive advice and prompting clients about insurance and the importance of AI frameworks.

“There is opportunity for more brokers to offer this advice,” Vero says.

Many businesses are using emerging energy technology, yet few are discussing the risks with their brokers and many are “unaware of their own levels of usage”.

“Brokers have an opportunity to demonstrate expertise by sharing information and educating businesses about the potential risk implications of these technologies.”

They may need to be proactive in this, because many businesses “may lack the knowledge to understand that they need advice as it relates to insurance”.

About one-quarter of businesses say they use new energy technologies, including 11% using lithium-ion batteries, 10% using EVs and 8% using solar panels with battery storage.

More than half are unsure whether they use these technologies.

“There is a real opportunity for brokers to help businesses as their risk profiles change. In particular ... lithium-ion batteries and EVs. Helping businesses understand the specifics of these technologies could be very valuable,” the report says. “There is room for education about these technologies and their potential risks.”

The survey also found only 18% of SMEs have a comprehensive AI framework focused on risk management.

Data privacy and security are the biggest considerations for businesses when implementing AI, and Vero says the risk to business reputation and lack of consumer trust on data security is a concern.

Combined with changing legislative requirements and technological capabilities, this provides scope for brokers to provide expert guidance. 

See the index here.