Insurance Fred Heritage · 16 November 2016
Micro businesses present a growing opportunity for insurers
The opportunity for insurers to sell commercial coverto the UK’s micro business population is growing, new research has shown. The latest UK SME insurance survey from finance sector research firm Verdict Financial found that nearly 30 per cent of the country’s micro business owners have yet to take out commercial insurance. With micro businesses now accounting for over 95 per cent of British companies, according to the survey, the opportunity for insurers to offer cover to these UK ventures is fast-growing. The results of the survey suggested that owners of smaller businesses have lower budgets, and are therefore less likely to buy insurance cover. Micro owners may also perceive their ventures as less risky, and won’t therefore seek coverage. Commenting on the research, Verdict analyst Daniel Cripps said that insurers were missing a trick. There is greater opportunity to sell commercial insurance, especially within the micro segment of businesses. it could be argued that smaller businesses are most in need of insurance as they have the fewest resources and least capacity to recover from financial losses, he added. The study concluded that to reach a greater number of micro businesses, insurance companies needed to innovate to offer more small business products, while improving product penetration.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.