The industry should be looking to develop more specific and tailored offerings to SMEs according to Simon McGinn, Director, Allianz Cornhill Commercial.
McGinn questioned whether, given that the DTI definition of SME covers 96% of business in the UK, the term is of any use at all. He said that in insurance, he considered SME to be a "lazy label".
McGinn said that what mattered for the insurance sector is to define customers and SMEs on a more sophisticated basis when it comes to product and service design and that it should look to develop more specific and tailored offerings that "suit the proposition to the segment".
He added: "Our business environment and capabilities will soon mean that we are able to provide more dynamic products at the smaller end that are cheaper and more efficient despite being modular."
"Broker and insurers need to work together to determine the segments of the commercial economy that they are best able to serve and exploit, and build products that are tailored to the segment and unique to them."
