In general, most broker clients claim to be satisfied with their brokers, although this has softened a little over the last year (see Figure 1.1). There is a very strong correlation between broker satisfaction and the type of relationship that brokers have with their clients. Brokers who work collaboratively with their clients have a significantly higher level of satisfaction than those who are rarely in contact with their clients.
Specifically, 51% of SMEs who have a collaborative relationship with their broker (that is, one in which the broker presents them with choices and then they decide together) are highly satisfied, scoring their broker 9 or 10 out of 10. This compares to only 24% of those who say that they have had minimal interaction with their broker.
“I like a phone call once a quarter or so, just to check up how we’re going, Satisfaction levels are also linked to the types what’s happening.” of tasks that brokers do for their clients. Highly Jeweller, Broker Client, 2020 satisfied clients have brokers who are more likely to do value-adding tasks that demonstrate their Satisfaction with broker (broker clients) Figure 1.1:such Satisfaction with brokeranalysis (broker clients) expertise, as providing in-depth and information, checking up on business changes, advocating on the client’s behalf and providing 8% 32% 2021 cost-effective options (see Figure 1.2). 2020
8%
60%
70%
22%
“We have a great relationship. I can ask them anything, they give me 26% 8% 2019 information and explain their analysis and5% recommendations in-depth.” 28% 2018
66%
A decade of learning
67%
Bottleshop owner, Broker Client, 2017 4%
2017
29%
The outcome of highly satisfactory broker client relationships appears to be correlated to more 2016 27% 5% positive attitudes to insurance overall. Highly satisfied clients are more likely to say that being 3% 29% 2015 insured gives them peace of mind and that they are happy to pay more for better service and advice. 2014
3%
27%
Dissatisfied
6
Neutral
67%
68%
68%
70%
Satisfied
A decade of insight. Chapter One Figure 1.2: Tasksby undertaken by satisfied brokers clients with satisfied clients (broker clients) Tasks undertaken brokers with (broker clients)
Analysis
Provide in-depth analysis on insurance options available
Check up on business changes
Provide information Advocate on advocate for clients on changes to client’s behalf insurance or regulatory requirements
Provide info
Provide cost effective options
cost effective
Satisfied
Vero’s latest SME Insurance Index marks the report’s 10-year milestone, and reveals key trends for brokers By John Deex
Neutral
What does that mean for brokers?
1
7
T
Dissatisfied
SME Index has been Most running Great service means takinghe time to understand of all, for 10 consecutivebusiness, years, and the reports provide clients and be engaged in their stay in contact! brokers and sharing information and analysis that helpsinsurance community with that most the broader them feel that they have the best solution.
A decade of insight.
2
precious of materials – information. Each report surveys approximately 1500 small businesses on their insurance-buying habits, and by looking back on some 15,000 responses over the course of a decade, key trends can be identified. Chapter One Broker use is up, with 40% of respondents this year saying they used a broker for their last insurance purchase. Encouragingly, the number of direct buyers considering using a broker is also rising. Vero stops short of calling it a trend – it would want to see at least two years of similar data first – but it’s a positive sign nonetheless, as clients increasingly seek out guidance in a COVID-altered world. SMEs increasingly want to be involved in their insurance – 60% this year say they personally research the insurance needs of their business, up from below 50% when the index started. And SMEs no longer just look for expertise from a broker; they want great service as well. Service has now overtaken expertise as the main reason to use a broker. Relationships are crucial, and the more contact a broker has with the client, the more satisfied the clients tend to be. Some 51% of SMEs who have a collaborative relationship with their broker are highly satisfied. The corresponding figure among those with minimal
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April/May 2021
interaction is only 24%. Also, the more involved a broker gets with a claim, the happier clients are with the claims experience. With this in mind, it should be concerning that 28% of clients in the latest survey say they haven’t had much to do with their broker in the past year, compared with just 9% in 2012. Vero Head of Commercial Intermediaries Anthony Pagano says the industry has changed significantly over the decade. “Who would have thought 10 years ago that four international broker groups would have joined together, Steadfast and IBNA would have joined together, and the authorised representative groups would be growing the way they are today,” he told Insurance News. “No matter how good your understanding of your current situation is, it’s always good to reflect on where you’ve come from, what you can learn and what you can do differently.” He says brokers have successfully diversified their services and incorporated emerging risks, and clients are seeking trusted advice. “If you look at the whole environment – whether it be the pandemic, natural catastrophes, the globalisation of segments – clients are looking for expert advice and are turning to brokers for that. It’s almost like a flight to trust. “We’ve also seen brokers diversify into full claims management services. We’re seeing through the data
