Brokers are leaving service delivery opportunities on the table over the course of policy lifecycles extending from getting started to making claims, the latest Vero SME Insurance Index says.

The index looks at services valued and offered through stages identified as getting started, ongoing support and advice, updating/renewing and making claims.

“There are some key service gaps across the lifecycle of the client relationship, where we see fewer brokers deliver valued services beyond the initial insurance recommendation,” the Vero report says.

“Many SMEs value ongoing tasks such as providing recommendations on mitigating risks or information on emerging risks, but a considerably lower proportion of brokers do this for their clients.”

The survey finds 74% of respondents say it’s important their broker provides recommendations on mitigating risks, but only 60% report their broker does that, highlighting a 14% gap.

The gap widened to 16% when it came to providing information on emerging risks and to 18% on the question of advocating on the client’s behalf to insurance companies at the claims stage.

Vero Head of Commercial Intermediaries Anthony Pagano says having a deep understanding of the insured’s operations, processes and ways of working throughout the year, provides the ability to connect with clients through supplying information and advice to mitigate or eliminate emerging risks and find cost effective ways to protect their business.

“The more brokers can deliver on these tasks which currently have the biggest performance gaps, the more likely SMEs will value and keep engaging with their broker,” he said.

This year’s index, now in its 11th year, highlighted a jump in satisfaction levels with 84% of SMEs scoring their broker 8 or more out of 10, which compares to a range between 60 and 70% over the past few years.

More SMEs are using a mix of purchasing channels, with many buying straight-forward covers direct, with ease of purchase and price nominated as key reasons.

Vero’s index also found that 52% SMEs reported renewing their insurance without the advice of a broker, with 14% conducted their own review and 38% renewing “as is”. Younger SMEs and medium businesses are less likely to receive broker advice when they renew.

“Although broker satisfaction levels are at a four-year high, which reinforces the role and advocacy that a broker plays within the current environment, there remains many opportunities for brokers to take advantage of,” Mr Pagano said.