SME INSURANCE MARKET ENDS FOUR-YEAR GROWTH STREAK

SMEs play a key role in the economy – micro businesses account for 95.5% of UK private sector enterprises and 18.6% of generated turnover. Figures showed 40% of SMEs are concerned about the fallout from the UK’s withdrawal from the EU because of perceived poorer economic conditions.

The rising threats of cyberattacks have also stoked SME’s concerns – and although insurers are introducing more policies, the report said penetration has declined.

“A lack of specialist cyber knowledge and too much focus on pricing are seen as the main issues within the industry,” it said. “It is also believed than many SMEs are taking the optimistic view that a cyber-attack will not happen to them, so the insurers need to convince them of the benefits of insurance.”

The report added that more can be done in upgrading technology for customer service.

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