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How Are SMEs Moving Toward Insurance Amid A Challenging Landscape?

An Allianz-commissioned survey has identified the biggest challenges currently being faced by small- and medium-sized enterprises in the UK and how they’re approaching insurance as a result.

According to Allianz, the survey conducted by OnePoll among 500 SME decision-makers found that energy bills (53%) topped businesses’ day-to-day woes, followed by supply chain problems (35%), late payments or unpaid invoices (30%), and competition (27%). To save energy, 46% have changed the way they operate and 23% have installed solar panels or other technology.

When it comes to insurance, 60% of the respondents said they have kept their coverage unchanged in the past 12 months; 21% have increased it; and 19% have reduced coverage. The same numbers apply to what SMEs plan to do in the next 12 months.

As for the threats respondents are bracing themselves for in 2023, inflation and the cost-of-living crisis (64%) emerged on top. A majority (71%) said the crisis is hurting their business. The other threats are the state of the UK econo my in general (33%) and the impact of Brexit (25%).

Allianz Commercial digital trading director Helen Bryant said in an emailed release: “SMEs are having to be increasingly agile and adapt their business models or modify their operations. These agile entrepreneurs need to let their insurance provider know when they’ve made significant changes as this could lead to gaps in cover.

“In this regard, brokers play a crucial role: their expertise will help businesses have the right protection for their changing needs. In this way, the insurance industry can support business diversification.”

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