The MetLife Adviser-Client Relationship Report 2018 also found that over half of SMEs who had an annual review with an adviser had their insurances favourably altered as a result.
Further, the report found a third of SMEs are ‘somewhat likely’ or ‘very likely’ to purchase cover they don’t currently have in the next two years.
“Small businesses are often misunderstood by the insurance industry as they have unique needs and there shouldn’t be a one-size-fits-all approach,” said MetLife Australia head of retail sales Matt Lippiatt.
“Therefore, having a trusted adviser who can provide education on the right type and structure of insurance cover related to their business can make a big difference to this group.”
The study found that SMEs had higher expectations than consumers when it comes to service from their adviser, particularly given many are reviewing their own business on a regular basis.
It found that over four in 10 SMEs have intentionally stopped using an adviser, citing price, poor advice, lack of contact, difficulty dealing with their adviser, and a lack of value for money, compared with a quarter of consumers.
However, it also found that SMEs are a loyal group when they find the right adviser, with 40 per cent of those surveyed having been with their adviser for five or more years, with many likely to recommend their adviser due to their trustworthiness, honesty, genuineness, effective advice, experience, accessibility and overall responsiveness and communication.
“Small business owners are time-poor, and they’re looking to their adviser to show them genuine care and give them value-added services such as home/office visits (including after hours), negotiating with insurers on their behalf, regularly reviewing their cover and putting in regular calls and emails to ‘check in’,” Mr Lippiatt said.
“Providing excellent, personalised service makes this group more loyal and helps them get real value from their adviser.”
The MetLife survey interviewed about 700 consumers who have purchased life insurance through an adviser, 300 consumers who are considering purchasing life insurance through an adviser in the next two years and 200 SMEs with up to 20 employees.
