PwC study shows shift to online plan purchases
Professional services firm PwC has released a study that found that 43% of UK small businesses last purchased their business insurance online. Despite a strong interest in wanting to interact more with customers online, only 12% have cyber insurance and only 14% have liability cover. The research from 2,100 small businesses globally found that UK small businesses are more digitally aware than their worldwide counterparts, with 46% purchasing insurance online, as opposed to 24% globally. Of those which planned to switch insurance provider in the next two years, 68% wish to do so online.
According to PwC, nearly half of UK small businesses bought their most recent business insurance online and they are increasingly looking to interact with customers digitally, though just one in ten have cyber insurance

Almost half (43%) of small businesses bought their most recent insurance online. They also want to interact more with their customers online, but only one in ten (12%) has cyber insurance.

A new PwC survey of 2,100 small businesses from across the globe shows the insurance market for SMEs is likely to completely transform to match the digital transformation within the next decade.

The survey, which included 300 firms from the UK, also showed that small businesses in the UK are more digitally savvy than their peers across the world when it comes to interacting with their insurance providers online, with almost half (46%) saying they have purchased insurance online, versus 24% worldwide.

The survey made these conclusions:

43% of UK small businesses bought their most recent business insurance online

More than two thirds (68%) of UK small businesses who plan to switch insurance providers in the next two years say they want to do so online

Just one in 10 (12%) UK small businesses have cyber insurance and 14% do not have liability cover

60% of small companies under five years old say they want to purchase business insurance online - this drops to 44% of more established companies aged over ten years, who tend to have deeper relationships with brokers and agents

As well as this, over a third also say they would be willing to use sensor technologies in their businesses if it would bring down their insurance premiums.

UK insurance leader at PwC, Jim Bichard said:

“The UK insurance market has always been seen as one of the most mature, but our survey shows we can also be the most innovative. Taking a lead from the digital transformation seen in personal lines, UK insurers are now leading the way on how they interact online with small businesses.”

Despite this, he believes there is still much room for improvement, and outlined how insurers can achieve that:

“Using technology; insurers can also reinforce the value they bring through providing greater coverage for current & emerging risks.

“In order to make the most of this growth opportunity, insurers need to focus on understanding the varied and complicated ways the UK’s small businesses function, as well as investing in ways to deliver a full range of products that will meet their needs.”

PwC says the insurance industry needs to act now to meet these growing demands from small businesses.