Better service could be behind an increase in the percentage of small and medium-sized businesses (SMEs) using brokers for their insurance, according to a new survey by Vero Insurance.
While only 37% used a broker in 2017, it represents the first year-on-year increase after three straight years of decline. The survey suggests better service could be the cause.
According to the survey, businesses who buy their insurance through a broker are twice as likely to be fully covered for losses as those who buy directly from an insurer. Nearly 23% of those who used a broker had their claims fully met, compared to only 10% of those going direct.
Those who use brokers are also more likely to be satisfied with their insurance, with 62% feeling satisfied compared to 57% for those going directly through an insurer.
"This is clear evidence of the benefit that brokers can bring to their clients, suggesting that when SMEs receive expert guidance on their insurance, they are far more likely to be adequately covered," the report states.
An insurance company is just as capable as a broker in guiding small businesses through the process of finding the right cover, but with a broker, businesses only have to go through the process once. The broker can then speak to multiple insurers for the best deal.