SMEs face uncertainty in digital business, says Chubb

The accelerated pace of digital transformation due to COVID-19 has left many small and medium enterprises (SMEs) with higher levels of risk and uncertainty, an insurer study revealed.

A survey conducted by Chubb and Accenture polled 1,350 SME executives across nine markets: Australia, Brazil, Canada, Colombia, France, Japan, Mexico, the UK, and the US. It identified four major trends impacting businesses pursuing digital transformation:

• Navigating digital-first communications – Around half of respondents said they are focusing on seamless on-demand delivery of products and prioritising tailored products and services that meet the needs of multiple generations.
• Harnessing the power of data – businesses identified the following areas as priorities for the next three years: artificial intelligence technology, cloud and big data
• Supporting a transformed workforce – Businesses are focusing on development of new technology capabilities and skills among employees, as competition to hire and retain the best talent intensifies.
• Thriving in the global market – More than four in 10 (41%) of businesses are prioritising expanding their products or services internationally.

“Although Singapore is not one of the nine markets surveyed, the mega-trends are still relevant,” said Scott Simpson, Chubb’s country president for Singapore. “For example, cloud adoption among Singapore SMEs has been on the rise since the start of the pandemic as companies pivoted to online business solutions to enhance operational efficiency and customer engagement. This is also boosted by the government's support to help SMEs digitise their business.

“While increased cloud adoption and government incentives to digitise present opportunities to grow and scale the business, SMEs will become more vulnerable to new risk exposures – from increased cyber security threats to additional liability challenges. Chubb is committed to providing the necessary risk management advice supported by solutions to help SMEs embark on digital opportunities in the evolving marketplace.”