With macroeconomic indicators suggesting an improvement in conditions for UK business, the SME insurance market should expect a more accommodating environment from 2014. With market overcapacity remaining, however, insurers face a challenge in effectively engaging with the smallest of the UK's businesses around their insurance needs.
Ensure your strategy is robust against the key issues facing the SME insurance market.
Target prospects emerging from shifts in the SME market and changes in product penetration rates.
Map your business plan against Verdict Financial's GWP forecast for the market.
Analyze the key issues that will continue to affect the market going forward.
What insurance opportunities are emerging from growth in particular trade sectors and the concerns of SMEs?
What did SME insurance market GWP amount to in 2013 and how was this broken down by business size?
Which lines of business are most popular among SMEs?
Verdict Financial estimates that UK SME insurance market GWP amounted to 6.1bn in 2013. The bulk of this consisted of micro-enterprises.
For insurers targeting the medium-sized enterprise space, the manufacturing industry not only accounts for 19.2% of businesses but also 20.5% of turnover in this sub-segment.
Public liability insurance was the most commonly purchased cover by SMEs, held by 71.4% of those surveyed by Verdict Financial. This roughly tallies with the product take-up observed in last year's survey, with 70.5% purchasing the cover.