UK SME Insurance Market - Companies to Focus on Strategic Collaborations to Gain Competitive Edge



Radiant insight Published “UK SME Insurance: Competitor Dynamics 2016”

Description

The SME market is important for commercial insurers as SMEs account for the majority of the UK economy. With insurers increasingly targeting the segment, the market is very competitive.  Insurers are developing their propositions to cater for small and medium sized enterprises. E-trade is becoming more of a central focus for the insurers in this space, as is the distribution of high-volume, low-value business via the direct channel. Organizations within the market vary in size and so have different insurance needs and service preferences, which means the SME market should not be categorized as one segment.

Direct propositions are primarily being developed by those looking to target sole traders and micro-sized enterprises with packaged products. Meanwhile e-trading is of greater focus for insurers targeting small and medium-sized enterprises that have greater affinity to purchase through a broker.

AXA and Aviva dominate the SME insurance space across the majority of commercial products, according to Verdict Financial's 2015 UK SME Insurance Survey. Other insurers present in the market play to their strengths when servicing SMEs.

Hiscox and Zurich are popular providers for liability products, whereas Allianz and Direct Line are strong in servicing SMEs to insure commercial motor vehicles. As the number of providers supplying commercial insurance solutions grows, and there is more choice available to potential customers, those offering the best deals in terms of the level of cover, the quality of the overall package, and price are most likely to succeed.

Synopsis

Verdict Financial's 'UK SME Insurance: Competitor Dynamics 2016' report looks at which insurers lead the way in the SME segment and how they are developing their propositions, as well as highlighting how competitor positions vary between micro, small, and medium enterprises. It examines which insurers are winning over brokers and which companies SMEs are placing their business with.

Key Findings

- AXA and Aviva dominate the SME insurance space, with 21.4% and 15.9% of SMEs respectively holding a commercial insurance policy with these providers.

- Brokers place the most SME business with Allianz, Aviva, and AXA.


Reasons To Buy

- Benchmark yourself against the rest of the market.

- Ensure you remain competitive as new innovations and insurance models begin to enter the market.

- Adapt your distribution strategy to ensure it is efficient and still meets customer purchasing behavior

Table of Content

EXECUTIVE SUMMARY
AXA and Aviva dominate the SME insurance space
Key findings
Critical success factors

THE SME INSURANCE MARKET AND ITS TOP COMPETITORS
Introduction
Aviva, Allianz, and AXA are the top SME insurers used by brokers
Allianz replaces Aviva as the top insurer for packaged SME products
The gap between Aviva and Allianz for brokered non-packaged business has narrowed
Insurers continue to move into the direct channel for SMEs
Hiscox, AXA, Allianz, and Direct Line are already distributing directly
Aviva has brought back its direct online offering for micro SME business insurance
Travelers Europe enters the direct channel to provide micro-SMEs with cover
Insurers continue to invest in e-trading platforms
Zurich continues to improve its SME e-trading platform ZTrade
Hiscox launches Hiscox Trader, a new e-trading system for commercial brokers
Insurers continue to join Open GI's SME panel
Insurers aim to tackle SME underinsurance
Allianz has removed average clauses and is working with brokers to highlight areas of potential underinsurance
Aviva has been extending policy limits and removing average clauses from SME products
NIG has developed an online cost calculator tool for brokers
Insurers continue to launch commercial products for SMEs
RSA launches SME products exclusively for the Broker Network
Hiscox launches new product to cover SMEs against economic crime
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