Survey says insurers are not meeting SMEs’ expectations

Some are not even provided explanations for coverage and responsibilities

Survey says insurers are not meeting SMEs’ expectations


By Terry Gangcuangco

An independent survey commissioned by Lorega Ltd has found that small- and medium-sized enterprises (SMEs) in the UK are not too happy with how insurers are handling commercial insurance claims.

Here are the some of the numbers:
  • 53% got no explanation of claims responsibilities
  • 56% said they received advice and support in preparing the claim
  • 57% had no regular updates from insurers re claim’s progress
  • 53% said they were not provided with information on cover and claim coverage

The MGA and loss recovery insurance specialist said the experiences of SMEs who had made a claim of over £5,000 in the last two years revealed that concerns highlighted in the Financial Conduct Authority’s 2015 thematic review on SME claims still needed to be addressed.

As for those who had not made a claim, the survey showed they had clear views on the most important aspects they would expect to receive: 1) insurer to provide regular communication on the claim’s progress; 2) advice and support in preparing a claim; and 3) prompt agreement of interim and final claims settlements.

Lorega managing director Neill Johnstone commented: “While the development and distribution of insurance products for SMEs continues to evolve, our survey indicates there remain challenges in the servicing and support available when SMEs call on the policy in the event of a claim.”

Johnstone believes the industry needs to take a more holistic approach to supporting SMEs who suffer claims of £5,000 and over, by developing cover that includes responsive claims services.

The research commissioned by Lorega was conducted by Censuswide and involved 250 SME business owners.

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