Allianz report reveals top concerns and challenges facing the UKs SMEs

Research results are encouraging for insurance brokers who can offer expertise

Independent research commissioned by Allianz Insurance found that SMEs believe a data breach is the biggest threat facing their business in 2018.

In a new report, Supporting SMEs to Prosper released today, the findings of an independent survey of 500 SME business leaders found that the Top Five Threats concerning them most are:

1. Data loss/misuse/theft

2. The impact of Brexit

3. Theft or malicious damage to business equipment or property

4. More advanced technology adopted by their competitors

5. A significant interruption to their business.

Worryingly, only half of the respondents (50%) said they fully understood the risks facing their business and in good news for insurance brokers, 50% of SMEs said that they would welcome further information from an expert source about these risks.

David Martin, director of SME and corporate partnerships, Allianz Insurance, said:

“SMEs clearly recognise the significant threat data and security breaches pose to their businesses, as well as more traditional risks such as theft or business interruption. The findings demonstrate that many small business leaders would welcome further information on how their business may be affected by these risks. Brokers and insurers can add further value to the relationship with their customers by raising these issues and providing advice on how to mitigate against them.ʺ

Allianz’s report also identified the Top Five Business Challenges facing SMEs in 2018, with recruitment issues topping the list:

1. Recruiting the right calibre of people

2. Competition from other providers

3. Innovation

4. Time management

5. IT capability

David Martin: “SMEs are currently operating in a very uncertain environment. As an industry, we hold a huge amount of expertise, not only on risk management but also on wider business issues. Our research demonstrates that there is a real opportunity to provide SME customers with expert guidance on issues such as recruitment, marketing and innovation.

He added: “Through our in-depth research with SMEs we’ve been able to gain some excellent insights into the priorities of the sector. We will incorporate these insights into our future product development and innovations to make sure our propositions are aligned with the evolving needs of our SME customers. In turn this will provide brokers with targeted insurance cover to offer to their SME customers.”

The full report, Supporting SMEs to Prosper, is available to download here.

ENDS