Brokers' value recognised by SMEs
Andrew Mair of Vero explains how the release of Vero's SME Index 2014 has highlighted the changing attitudes of SME business customers.
Video transcript below:
Reporter: The release of Vero’s SME index 2014 has highlighted the changing attitudes amongst this key business demographic, as Andrew Mair of Vero explains.
Andrew Mair, Vero Insurance
Andrew Mair: One of the big take action this year is that the businesses that use brokers are really happy with them,. So over 90% of those who have brokers are satisfied or really satisfied with the, the relationship and the service that a broker provides them. While they like them I think is interesting, just over 50%, 53% really think that brokers save them time, so they can focus more on their business and what's important to them and the second thing about 45% of the businesses think that brokers bring expertise and knowledge that they don't necessarily have in terms of what products they need and what risks and exposures need covering and so that's the, that's the real value that brokers bring to the to the equation.
Reporter: Mair says the key takeaway for broker is that there is still huge opportunity out there.
Andrew Mair: Well I think the takeaways are, there are some big opportunities out there, we hear a lot talk about direct and you know businesses moving to direct. But about a third of those that are direct already are rather thinking about or inclined to think about moving towards using a broker, so that's a good opportunity for brokers. I think the other thing is that brokers just need to really focus on being relevant and demonstrating value taking the focus off the transaction and putting it on to the relationship and the value of the advice and that really is something that only they can do and that is their, that's their advantage in terms of how they differentiate with small businesses.
Reporter: Finally Mair urges brokers not to be discouraged by any perceived lack interest from prospective clients.
Andrew Mair: The other take away from the survey is you know why businesses don’t use brokers and I think the important thing here is that say it's an ignorance or knowledge-based rather than an experience-based decision. So the real opportunity for brokers is there to get out there and demonstrate and explain their value and their relevance to small businesses and I think that's one of the things we are hoping , I mean our role is to partner with brokers and you know we're putting together a series of workshops stuff, we are going to roll that later in the year. We're also going to, we've got some tools that we are launching for brokers to help to collate and articulate their value proposition more clearly to, to prospective clients, because we think there's a great opportunity there for brokers to get out there and explain it. I think once people understand better, they are more inclined to use brokers.