SMEs value customisable cover when choosing an insurer

Core Insights - The insurance selection process for SMEs is increasingly influenced by factors such as price, service quality, transparency, and flexibility, as competitive pressures make pricing advantages harder to maintain [1] Pricing and Transparency - According to GlobalData's 2025 UK SME Insurance Survey, policy price is the most critical factor for SMEs, with 39.5% ranking it in their top five selection criteria, followed closely by pricing transparency at 37.3% and ease of understanding policy information at 35.8% [2] Customization and Tailored Insurance - The survey indicates that 31.2% of SMEs prioritize the ability to tailor insurance coverage to their specific needs, surpassing brand recognition (26.2%) and prior relationships with insurers (20.8%), suggesting a shift towards flexible, needs-based product design [3] - This trend presents opportunities for smaller insurers and Managing General Agents (MGAs) to disrupt the market by offering competitive pricing, clear policy terms, and highly tailored coverage, allowing them to compete effectively despite lower brand recognition [3] Market Pressures and Demand Shifts - AXA UK's 2025 research highlights that rising national insurance contributions, high business rates, and increasing operating costs are reshaping SMEs' risk priorities and insurance demands, leading to a preference for coverage that reflects their specific business models and sector risks [6] Engagement Opportunities - Both AXA's research and GlobalData's findings emphasize the potential for insurers to enhance SME engagement through transparent pricing, simplified communications, and flexible product designs, indicating that those who adapt their offerings will be better positioned for growth and retention in the SME segment [7]