Marketing researcher Ross Cameron says brokers must promote themselves to SME businesses now to counter increasing competition from direct insurers.

He told a Vero Expo in Melbourne last week that the number of SMEs using brokers has dropped to 60%, while buying direct from an insurer has risen to 38%.

But he says the recent string of natural catastrophes has provided an ideal opportunity for brokers to reposition themselves and promote their services in the SME insurance market.

“It’s sad to say, but in a way major disasters are a fabulous opportunity for the repositioning of brokers,” he said.

Mr Cameron says this is the perfect time for cluster groups to be “picking up the ball” to reposition brokers as the experts for customers’ needs, because up to six months after a disaster SME businesses “become more attuned to their risk”.

“You don’t get a window of opportunity like this very often,” he told the large expo audience. “When that window opens then absolutely [brokers] have to get out there on the front foot.”

Steadfast Executive Chairman Robert Kelly says while his group isn’t seeing a move away from the use of brokers, there are concerns some tradespeople and other SME businesses could make their insurance decisions based purely on price.

He told insuranceNEWS.com.au some insurers “push price not advice” in advertising of direct products, and there is little awareness of the disadvantages of this until it comes time to make a claim.

“We had a client who got a quote from an insurer that was half the price the broker quoted,” he said. “But then the client was concerned why there was such a difference.”