NIBA / Special Feature
A market moving at two speeds
While larger organisations are increasingly strategic, SMEs are – out of necessity – thinking short term, and that has clear implications for brokers in how insurance is positioned, how risks are managed and even how brokers need to communicate. Short term thinking increases risk management challenges That ‘survival mode’ has wide ranging repercussions – particularly when it comes to risk management. And it’s understandable. If businesses are concerned about simply still being in existence next month, their appetite for managing potential risk and disruption in the future is going to dampen. Pagano says the opportunity for brokers is to help clients think more strategically about their risks and how they are managed, which can build resilience in the day to day. “One of the more concerning findings is that many small businesses are still underprepared for disruption,” he says. “A significant proportion – 75% – haven’t
conducted any formal risk assessment, and most are managing risk in a fairly informal, reactive way. “The challenge is that these are also the businesses most exposed to disruption. So, there’s a real opportunity for brokers to step in, not just at renewal, but earlier, and help clients think more strategically about their risks and how they operate.” This is a critical opportunity, as it reinforces that risk isn’t just a compliance or insurance issue, but an operational one.
While the headline numbers tell the story that nearly half of the businesses surveyed report a decline in revenue over the past 12 months, and cost pressures remain an ever-present concern, the story is far more nuanced than it first may appear, says Vero’s Head of Distribution, Anthony Pagano. “What we’re really seeing is a divergence in how businesses are operating and thinking about insurance,” says Pagano. “Smaller SMEs are often still in survival mode – dealing with rising costs, cashflow pressure and limited resources – whereas larger businesses have more levers they can pull." “They can invest in risk mitigation, they’ve got pricing power, they’ve got capital behind them, and that allows them to take a much more proactive approach. That difference in mindset has a direct impact on how they engage with insurance, and how they engage with their broker.”
“There is a clear advice gap emerging in the SME market,” says Klipin.
“Many businesses don’t lack awareness of risk, they lack the structure and support to act on it. That’s where brokers can have the greatest impact.” Practical tips to demonstrate SME value The change in the needs of SMEs and the opportunity ahead for brokers is clear – so the question is how to add the required
36 / INSURANCE ADVISER APRIL/MAY 2026
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