Understanding the Shopping and Switching Habits of SME Consumers

In the ever-evolving landscape of SME insurance, understanding the shopping and switching habits of consumers is crucial for insurers aiming to retain their customer base and attract new clients. Our new quarterly SME Tracker provides valuable insights into these behaviours, highlighting key trends and areas for improvement. 

High Shopping Rates Among SME Consumers 

The study is to support the launch of a new service from Consumer Intelligence, anlaysing the SME insurance sector from a buying and a selling perspective. It will provide unique insight into the market, and how insurers and brokers can adapt to changes.

Consumer Intelligence says its study shows small business owners are sensitive to the price of cover but that it is not their only consideration when buying insurance.

This ‘switching friction’ leads to advantages for the existing insurers of SME businesses, Consumer Intelligence says.

When business customers did switch insurer, Consumer Intelligence says this tends to be because they can get cheaper rates for the same or better cover, had a poor claims experience with their previous insurer or had changed business circumstances requiring different coverage.

Other reasons for switching included cashback incentives and recommendations from peers.

Most SMEs stayed with one insurer for between one and three years

Our 2025 Q1 data reveals that on average nearly 8 in 10 SME customers actively shop around at renewal, with this figure rising as high 94% for specific brands! This high level of shopping intent underscores the competitive nature of the market and the importance of proactive retention efforts. Insurers must focus on clear value communication and creating renewal experiences that reduce friction to retain their customers. 

Shopping Channels Used 

When it comes to shopping for commercial insurance, price comparison websites (PCWs) are still the go-to choice for many SME consumers. A significant 64% of our respondents use PCWs, however, traditional channels still hold relevance, with over a quarter of respondents engaging by phone or through brokers, indicating a continued demand for personal service and advice.  

Switching Behaviour and Reasons 

Switching providers is a common practice in the SME market, with just over half of commercial insurance customers (51%) switching at renewal. Unsurprisingly, price remains the top reason for switching, with 34% citing a cheaper renewal and 25% choosing the lowest premium available. Other factors driving switching include better value, changing needs, and service issues such as poor digital or call centre experiences. 

Retention Challenges 

Retention rates vary significantly among providers. This disparity highlights the challenges faced by some insurers in maintaining customer loyalty and the need for targeted retention strategies. By understanding how consumers view your brand, you can take the necessary steps to enhance engagement and better retain these sensitive customers.    

The insights from our quarterly SME Tracker emphasize the importance of understanding and addressing the shopping and switching habits of SME consumers. By focusing on clear value communication, improving service experiences, and leveraging both digital and traditional channels, insurers can better meet the needs of their customers and enhance retention rates.  

Want to see how you stack up against your peers? We have the data and insights to help you benchmark and make impactful changes. With actionable insights, it's never been easier to turn data into opportunity. Discover the power of our SME Tracker and transform your business today.