Insurers must maintain strong communication with SMEs during second COVID-19 lockdown to retain customers
A rare positive for insurers from the pandemic is that SME customers believe their communication with regards to COVID-19 has been strong, and this will remain essential as we enter another lockdown. GlobalData Financial Services writes
Insurers have received criticism for excluding pandemic cover in a range of products, but GlobalData survey data shows that over half of SME customers are satisfied to some extent with insurers’ communication during this trying time.
According to GlobalData’s 2020 UK SME Insurance Survey, 63.6% of all SMEs in the UK are either somewhat satisfied or very satisfied with their insurer’s performance in terms of ‘communication about the impact of coronavirus on my insurance cover.’ Furthermore, over a third of respondents (34.2%) were very satisfied. Only 9.4% were unsatisfied with the communication.
This will be encouraging for SME insurers, as in difficult times such as these, maintaining contact and a positive relationship with clients is essential to retaining them. It is key for SMEs in the UK to know exactly where they stand with their insurance, what they are covered for, and what they are not as they continue to work under heavy restrictions. This data indicates that insurers have been doing a good job so far.
However, the survey was carried out before the announcement of the second lockdown. This will cause further problems for many SMEs and insurers, with claims likely to rise again as many businesses are prevented from operating. Therefore, it is essential that insurers maintain, if not improve, this level of communication, as retentions next year – amid squeezed budgets and stories of failure to pay out claims – will be challenging.