SME Insurance in a Poly-Crisis Era
Risks of Underinsurance and Opportunities for Brokers & Insurers
Small and medium-sized enterprises (SMEs) form the backbone of the UK economy, accounting for 99% of businesses. Yet today, these businesses face an unprecedented confluence of challenges, a "poly-crisis" driven by cost-of-living pressures, high inflation, supply chain disruptions, and soaring energy costs.
This report analyses the current state of SME insurance in the UK amid these pressures, with a particular focus on the growing problem of under-insurance.
Navigating the Evolving Mobility Landscape
Over half of UK SMEs have stopped purchasing at least one type of insurance policy in the past year, leaving significant gaps in protection. At the same time, it's estimated that four in five SMEs are underinsured, meaning their existing cover would not fully protect them if they needed to make a claim.
This situation presents both risks and opportunities for insurance brokers and insurers. The risk is evident: underinsured or uninsured clients may suffer devastating losses, and trust in insurance could
erode if payouts fail to meet expectations. However, brokers and insurers who step up as guides and advisors can turn this into an opportunity
