Sonya Bryson, commercial lines managing director at RSA Insurance, argues that a closer relationship with brokers and their SME clients will help insurers offer businesses the right cover at the right cost
Small and medium-sized enterprises (SMEs) are the backbone of the UK economy, yet many find themselves inadequately protected because of a mismatch between their specific needs and the insurance products available.
In conversations with brokers, one message comes through consistently – while the market offers a range of policies, these often fail to deliver the bespoke coverage SME clients increasingly require.
Research suggests that up to 40% of UK SMEs may be underinsured.
This isn’t simply a case of oversight – much of the problem lies in how insurance products are built and sold. ETrade platforms are designed to cater to a broad audience and operate efficiently – but in doing so, they often gloss over the nuanced risks facing many SMEs. As a result, key exposures, such as cyber threats, supply chain disruption or professional indemnity, can go unaddressed.
Compounding the issue is the lack of product diversity within the SME insurance market. There are too few meaningful options on the shelf. Most insurers offer pre-packaged, generalist propositions that cover the basics – but often don’t go far enough.
The gap is especially pronounced for businesses that fall between the extremes – those that are too complex for an eTrade policy, yet not large or intricate enough to justify the cost and process of a fully bespoke mid-market offering.
We have identified these businesses as ‘traded SMEs’, or businesses that don’t fit the standard mould. They require underwriter involvement and more careful handling than an eTrade policy can provide, but they don’t need all the bells and whistles of a mid-market policy either.
As brokers reiterate to me regularly, it’s an area of the market nobody excels in. So how do we meet the needs of this underserved segment?
Smart and flexible
Brokers are a vital part of the answer. Their proximity to clients gives them insight that a one-size-fits-all system can’t match.
With the right collaboration, brokers can work with insurers to shape policies that offer relevant cover at a sustainable cost. This middle ground approach doesn’t have to mean compromising on protection or service – it just requires a smarter, more flexible mindset.
For insurers, the challenge is to innovate how we engage and deliver. That means creating adaptable products that can be quickly configured to suit traded SME needs.
It also means equipping brokers with the tools and access they need to engage underwriters early and efficiently, ensuring clients receive appropriate cover in days, not weeks.
Crucially, building strong, straightforward relationships with brokers is essential to bridging this gap. Brokers are not just intermediaries – they are strategic partners that bring deep knowledge of their clients’ industries and evolving risks.
By embedding collaboration into every stage of the underwriting and product development process, insurers can move beyond transactional interactions and develop a shared understanding of the unique pressures and priorities facing traded SMEs.
A close, consistent broker relationship enables more agile responses, smoother processes and better outcomes for the end customer.
Ultimately, if we want to protect SMEs properly and allow them to prosper in good times, while remaining resilient in bad times, then we must get better at serving the space between.
That’s where a lot of real businesses operate and it’s where the biggest opportunity for improvement now lies.
