- Purchasing insurance online via a PC is the most common method by which SMEs arrange cover : 31.6 % of respondents claimed to purchase the majority of their insurance over the internet on a desktop PC .
- SMEs are typically very loyal to their providers with most product markets commonly retaining as much as 80 % of their business across SMEs of all sizes , but particularly those at the larger end of the scale .
Reasons To Buy - Identify the most prominent sales channel for SMEs .
- Adapt / re-evaluate your distribution strategy and proposition to meet the needs of modern consumers . - Discover the factors influencing SME purchasing decisions and distribution channel selection .
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Table of Content
EXECUTIVE SUMMARY Brokers are regaining their grip on commercial insurance distribution Key findings Critical success factors
THE SME PURCHASING JOURNEY Introduction Brokers are starting to regain their foothold of product distribution for SMEs 2016 has seen brokers increase their share of product distribution The direct channel has the most potential , particularly at the micro end of the market Banks are also beginning to recognize the potential benefits of cross selling Brokers and the direct channel compete intensely for business in the micro space Purchasing confusion , seen in personal lines , is growing within the SME market Insurers need a varied approach to product distribution in the SME markets Price is the leading reason for SMEs choosing their selected distribution channel Almost one third of home-based business owners go direct Packaged products are popular although standalone policies are also highly sought after Arranging insurance online is most suitable for SMEs Most SMEs are opting to purchase cover via the internet The online marketplace appeals to younger / more tech-savvy business owners Contacting an existing provider is the most common action among SMEs looking to purchase SMEs still exercise some degree of independence in the purchasing journey There is ample opportunity to keep existing customers but many seek professional advice Comparison sites are a popular point of referral for SMEs renewing a policy The internet is the most popular source of information during pre-purchase activity
SME LOYALTY AND SWITCHING Remaining loyal to an existing provider is commonplace in the SME market Over three quarters of SMEs remain with their chosen provider in most product areas Price is the most pertinent issue when it comes to switching Almost half of SMEs switch based on price More businesses are expected to flock to the direct channel in the coming years Brokers are still holding their own among expedience- and efficiency-seeking SMEs
SME SERVICING