Broker satisfaction at an all-time high, finds the Vero SME Insurance Index 2024

The latest Vero SME Insurance Index highlights some extremely positive findings, with 87% of business clients saying they were satisfied with their brokers.

Over the last 13 years, the Vero SME Insurance Index has aimed to uncover insights to help brokers understand what businesses are looking for from their brokers and how brokers can best meet their needs.

Insurance decision makers in 1,500 SMEs (<200 employees) and 250 large businesses (200+ employees) throughout Australia were asked about their attitudes, needs and behaviours toward insurance and insurance brokers. The findings from this year’s report include some important insights relevant to brokers that are explored below.

Economic pressures are prompting businesses to review their existing insurance arrangements

Over the last year, 51% of businesses claim to have made changes to their insurance as a direct result of the economic conditions. The most common change made is increasing excess levels, presumably to reduce premiums and take pressure off expenses. 83% of businesses are considering changes to their insurance in the future, underlining the current volatility in decision-making.

Around 1 in 5 are considering cancelling some of their insurance, which reinforces the need for brokers to stay in contact with clients and help them through insurance decision making with expert advice.

Insurance purchasing is becoming more complex and hybridised

Businesses are increasingly embrace a hybrid approach, blending utilisation of brokers and direct channels for their insurance needs. In 2024, only 10% of businesses describe themselves as heavy broker users (those who buy over 90% of their insurance through a broker) which is down compared to 27% of businesses in 2018.

Light users – those who buy less than 50% of business insurance through a is the group that’s growing the fastest. Here, brokers have a valuable opportunity to encourage their current light clients to buy more of their insurance through their broker.

Satisfaction with brokers is at an all-time high

Over recent years, the Index has tracked strong increases in client satisfaction with their brokers. This year, a staggeringly high 87% of clients were satisfied, giving their broker a score of at least 8 out of 10, up from 78% in 2023 and 84% in 2022, which was a previous record.

This insight suggests that brokers are delivering valuable outcomes across a range of areas. 82% of broker clients cite good service as a reason to use a broker, up from 76% in 2021.

The highest increase came from claims, with 51% saying that claims are a reason to use a broker, a significant lift from 34% in 2021.

To know more, download and read the full Vero SME Insurance Index 2024 here.