One in five small to medium-sized businesses are expressing heightened concerns related to the ramifications of climate change, according to new research from Vero.

The findings bring to the fore growing unease among businesses about the risks posed by natural disasters. Notably, 18% expressed escalated worry, a significant jump from the 7% reported in 2021. Furthermore, a third of businesses perceive themselves as being at moderate to high risk of natural disaster impact.

Vero executive general business manager Sacha Cowlrick underlined the insurer's focused approach in the 2023 survey. The study delved into climate change perception and awareness of natural disaster risk and impact, particularly due to the marked increase in severe weather occurrences this year.

“There has been a definite shift in attitudes towards climate change and that showed in the results, with not only rural businesses experiencing heightened concerns, but direct buyers, large businesses, and those operating in farm-based or temporary work sites, like construction,” Cowlrick said.

The research also reveals that the percentage of businesses feeling prepared to tackle climate change has remained steady since 2020, maintaining a consistent figure of 37%. Cowlrick stressed the role of brokers in aiding clients' preparedness in this crucial aspect.

All these findings are part of the 2023 Vero SME Insurance Index, now in its seventh iteration, and encompasses insights from over 750 businesses across Aotearoa. Recent findings from the same study also revealed around 70% of SMEs are neglecting key factors when it comes to insurance renewals.

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