Core Insights - The primary concern for UK SMEs is not underinsurance, as only 14.5% express being very concerned about it, ranking it lowest among 23 assessed risks [2][3] - The most pressing issues for SMEs include the cost-of-living crisis (31.3%), revenue generation (27%), and political changes (25.7%) [2][3] - A significant 74% of SMEs globally are underinsured, indicating a disconnect between perceived risks and actual coverage needs [4] Group 1: Underinsurance Concerns - Only 14.5% of UK SMEs are very concerned about being underinsured, making it the least concerning issue [2] - Hiscox's report indicates that 74% of SMEs worldwide remain underinsured, with 55% lacking essential coverage types [4] - A large portion of SMEs lacks understanding of key insurance types, with 77% unable to describe cyber insurance and 80% for professional indemnity [4] Group 2: Operational Focus - UK SMEs are primarily focused on immediate operational challenges, which leads to deprioritization of long-term financial risks like underinsurance [3] - The lack of concern for underinsurance may stem from unfamiliarity with comprehensive protection and evolving risks [5] - Many SMEs have not reviewed their insurance policies in over three years, indicating a gap in awareness and understanding [4] Group 3: Opportunities for Insurers - There is a clear opportunity for insurers and brokers to provide targeted solutions to address the underinsurance issue [5] - Proactive coverage reviews and simplified product explanations can help SMEs identify and understand their coverage gaps [5] - Enhancing education and transparency around insurance options is essential for reducing the protection gap and safeguarding SMEs [5]