Brokers remain the most popular channel for purchases

LONDON, July 06, 2022 (GLOBE NEWSWIRE) — The United Kingdom (UK) SME Insurance – Purchase Journey 2021 report, offered by GlobalData Plc, provides insight into how SMEs buy insurance cover and the reasons behind their purchase decisions. It looks at the channels SMEs use to purchase insurance, pre-purchase activities, switching behavior and whether SMEs are considering canceling any of their existing policies. The report uses findings from our annual UK SME Insurance Survey, as well as additional in-depth interviews with industry leaders.

Brokers remain the most popular channel for SMEs to purchase insurance. However, the share of brokers in the sole trader segment has declined significantly, with direct sales increasing commensurately as some insurers have made a strong push into the sole trader market.

UK SME Insurance Market Dynamics

The overall number of SMEs has decreased since the start of the COVID-19 pandemic. However, they still play an important role in the UK economy, accounting for almost all UK businesses in early 2021. Those suppliers who are able to demonstrate an understanding of how businesses need to adapt and who can advise them on their changing customer needs are best suited for future business and greater customer retention. Key areas for investment include automated claims processing, the use of artificial intelligence to improve insurance efficiency and automated advice capabilities such as robo-advice, which enable SMEs to self-serve while receiving advice. Despite the high initial costs, such investments will prove beneficial in the long run.

Download a sample report for more information about UK SMEs iinsurance market

UK SME Insurance Market Segment Analysis by Purchase Channels

  • Broker
  • Direct sales
  • bank
  • PCWs

Broker: Brokers remain the most popular purchase channel among UK SMEs in 2021, accounting for almost half of purchases. Although their share has decreased compared to 2020, brokers will always play a key role in this space due to their ability to offer advice and a range of products that best suit business needs.

Direct sales: The direct channel is enjoying a resurgence in 2021, driven mainly by sole traders and micro-enterprises. Direct sales are particularly strong among sole traders and micro-enterprises.

bank: Banks’ market share declined significantly in 2021 after years of steady growth. Banks were pushed by more direct sales and increased use of PCW by SMEs in 2021.

PCW: PCWs are the fourth most popular channel. PCW activity increased particularly among SMEs – especially for commercial vehicle insurance – indicating increasing price sensitivity. But PCWs ultimately have their limitations, especially for larger enterprises. And they don’t offer advice, which means they’re unlikely to grow their share much more because of the need for personalized advice. However, research suggests they will remain popular as a pre-purchase check among SMEs to see what other offers are available, even if they are not necessarily the final point of purchase.

UK SME insurance market, by purchase channel

Download a sample report for detailed information about the purchase channel of tUK SMEs iinsurance market

UK SME Insurance Market Report Scope
This report looks at how SMEs buy insurance cover and the reasons behind their purchase decisions. It looks at the channels SMEs use to purchase insurance, pre-purchase activities, switching behavior and whether SMEs are considering canceling any of their existing policies. The report uses findings from our annual UK SME Insurance Survey as well as additional in-depth interviews with industry leaders

Reasons to buy

  • Identify the most popular sales channels for SMEs.
  • Adapt or reevaluate your distribution strategy and offering to meet the needs of today’s customers.
  • Discover the factors influencing SME purchasing decisions and distribution channel choice.
  • Understand switching behavior between different customer segments and insurance products.
  • Assess the impact of COVID-19 on the purchasing behavior of SMEs.
  • Learn how important insurers’ sustainability performance is to their corporate clients.

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UK SME Insurance Market Oreview

Buying channels Broker, Bank, Direct Sales and PCW

Frequently Asked Questions

Who are the key purchase canals in UK SMEs insurance market?
The key buying channels in the UK SME insurance market are brokers, banks, direct sales and PCWs.

Content

Executive summary

Critical success factors

The UK SME landscape

Buying channels

Supplier selection and customer retention

Future switching and cancellation

Application

About us

GlobalData is a leading provider of data, analytics and insights for the world’s largest industries. In an increasingly fast-paced, complex and uncertain world, it has never been more difficult for organizations and decision-makers to anticipate and navigate the future. That’s why GlobalData’s mission is to help our customers decode the future and benefit from faster, more informed decisions. As a leading information services company, thousands of customers rely on GlobalData for reliable, timely and actionable information. Our solutions are designed to provide a daily advantage to professionals within corporations, financial institutions, professional services and government agencies.

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