The Benefits of Using a Broker are Clear

BROKER CLIENTS CAN IDENTIFY CLEAR AND RELEVANT BENEFITS

Despite the slow drift to direct channels and issues with reaching women and younger SME decision makers, current broker clients see clear benefits in their broker relationship, including saving time, price, access to expertise and a personalised understanding of their business.

Despite the increased presence of online insurance offerings, brokers have a clear value proposition that is highly relevant to their SME clients.

Expertise is really important. Broker clients feel that no matter how savvy they are, it takes a professional to provide the detailed understanding to assess their needs and get their insurance right.

Understanding their business – or perhaps more importantly their industry – is critical. Many refer to the need for specialist understanding as risk factors differ from industry to industry and between businesses.

 

FOUR KEY BROKER BENEFITS TO SMES

1   Time Savings

56% said using a broker saves time so they can focus on their business.

“Without a broker for my insurance I’d spend hours doing work I’d otherwise spend in the business.”  Medium Business

 

2  Access to the Best Price

48% trust their broker to get the right insurance for the right price.

26% said they get cheaper prices through their broker.

 

3   Understanding of Their Business

40% said their broker knows and understands their business.

36% said their broker provides service personalised to their needs, and the needs of their business.

“I’ve been with the same broker since I bought the business more than 6 years ago, so he knows exactly how my business is built, how it’s grown.”  Medium Business

 

4   Access to Expertise

40% said their broker provides expert knowledge and advice

30% said their broker gives them peace of mind by providing them with the correct insurance

16% said their broker proactively keeps them updated about insurance issues

“Am I an expert – No.  But even if I was, I’d need to still have a broker who could give us advice and question us about what we have in place.”  Medium Business

 

BROKER CLIENTS CAN IDENTIFY CLEAR AND RELEVANT BENEFITS AND THIS CONTINUES TO TRANSLATE INTO LONG-TERM, LOYAL RELATIONSHIPS

86% of SME broker clients expressed satisfaction with their current relationship.

 

SATISFACTION WITH BROKERS

 

WHEN SMES LAST CHANGED THEIR BROKER

 

Relationships have stabilised over the past year.

 

“The advantage of having a broker is not having to think about it. I don’t have to research an area I don’t have expertise in. Going to somebody and getting them to do the work for you is absolutely imperative… things roll around year after year, and it all works seamlessly.”  Medium Business

 

WHAT THIS MEANS…

To those that have experienced a broker relationship, brokers have a clear value proposition relevant to them. Time saving, expertise, personalised service and an understanding of the client’s business are all highly relevant benefits for busy SMEs.

Also increasingly relevant is the SME perception that they are able to get the right price or an even cheaper price  through their broker.

In this competitive environment, brokers need to ensure they continue to deliver these clear and relevant benefits. They represent a strong value proposition and a timely and powerful message, particularly to those not currently dealing through a broker.

 

[Reference: Vero SME Insurance Index 2013 http://www.vero.com.au/vero.smeindex2013/]