QBE launches new report examining SMEs and insurance
A new report released today by QBE Australia has combined five years of claims data analysis with a new research study to unveil the insurance habits of Australia’s small to medium enterprises (SMEs).
The report – SMEs and Insurance: A pulse check on risk trends for businesses – surveyed over 600 Australian SMEs1 to reveal that 62 per cent of small business owners believe they are unlikely to have the right insurance in place to protect their business.
According to the findings, if faced with a claim, a majority of respondents would likely run up large personal debts to pay these, with 33 per cent admitting to simply not knowing where the money would come from or to being unable to finance the legal costs. Only 42 per cent of those surveyed would claim against an insurance policy.
Aaron Gavin, General Manager, Small to Medium Enterprises (SME), QBE Australia said that the report is a good indication of current risk trends affecting the SME market, with the survey confirming there is more the insurance industry can do to educate small business owners about their insurance needs.
“Insurers and brokers are ideally the first point of contact for advice about insurance, however our survey shows that more than half of the business owners turn to their accountant or financial advisor first for advice about insurance, while just over 40 per cent look for information themselves, mostly online.
“Almost a quarter of business owners say they ask their family and friends, and only 15 per cent initiate the conversation with their insurance broker2.
“Ensuring that you have the right level of cover for the risks that your particular business might face is essential to protect your livelihood. An insurance professional is best placed to provide that advice.
“This new SME-focused report makes a compelling case for keeping business insurance up to date and I hope business owners and insurance brokers will find it useful for starting open and frank conversations about having the right cover.”
Click here to download a copy of the QBE SMEs and Insurance: A pulse check on risk trends for businesses report.
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1Pureprofile research study of 609 Australian SMEs completed for QBE Insurance during April 2019
2Respondents were asked to select all that apply so percentages will not total 100.