1,750 Australian businesses share their voice in Vero’s annual SME Insurance Index

Insurer Vero has released its 2025 SME Insurance Index, with results showing the importance of broker expertise is increasing, as Australian businesses continue to be impacted by the current economic environment.  

Now in its 14th year, the 2025 SME Insurance Index surveyed 1,750 Australian business to gauge their sentiment around the current business climate, insurance purchasing behaviour and perceptions of brokers and the insurance industry.

The Index provides brokers with a valuable perspective; a snapshot of current trends and opportunities within the sector. 

This year's Index examined key areas shaping the sector, including how brokers’ roles are evolving to meet client expectations, risk management practices, and the ongoing challenge of underinsurance against rising costs.  

Commenting on the report, Vero Head of Distribution Anthony Pagano said: “Australia’s business landscape has changed a lot over the past decade, and it’s important to highlight the insurance trends that correlate with the SME market conditions.  

"The Index has also shown the critical role brokers play in managing SMEs and risk, and Vero shares these insights for our brokers partners to be at their best in managing existing or potential clients.

“With significant economic pressures and rapidly advancing technologies, businesses are looking to insurers for comprehensive coverage and strategic support to manage complex and evolving risks.

“Brokers are essential in this role, with their expertise integral to ensuring clients have a broad view of their risks to guide them to make informed decisions. "

Changing relationship with brokers  

Vero has seen a significant shift towards businesses using a mix of channels to purchase their insurance. Mixed usage is becoming increasingly popular in Australian businesses, with 74 per cent using a broker for some of their insurance products but not all.  

Mr Pagano suggests this is largely a self-driven decision for businesses.  

“Businesses are showing an increased desire to work with brokers on a tailored basis, with 44 per cent now opting to purchase portions of their insurance themselves. 38 per cent say this is to try to streamline their processes and boost efficiency.”  

“Like previous years, we’re finding direct purchase is becoming more common with straightforward products, including commercial motor vehicle, workers compensation and travel insurance.”  

Despite a mix of channels becoming more prevalent, most businesses had never switched brokers (73 per cent) mostly due to good service and strong relationship building. 

Advancing with emerging technology  

The Index revealed that Australian businesses are increasingly integrating emerging technologies such as artificial intelligence (AI), electric vehicles (EVs), lithium-ion batteries and solar panels into their operations. While these advancements offer competitive advantages, they also introduce new and complex risks.  

This year’s Index has presented a lack of understanding relating to the adoption of these technologies, with 58 per cent of those surveyed unsure if they utilise them at all.  

“With each key emerging technology we’re seeing less than half of Australian businesses discussing the risks associated with their broker,” Mr Pagano said.

“With each key emerging technology we’re seeing less than half of Australian businesses discussing the risks associated with their broker.

“One example is in the case of AI which is perceived as complex, but conversations around its risks are vital as businesses continue to adopt the technology.”