Richard Miller, head of mid-term for Northern Europe at Allianz Trade, discusses a solution to the growing SME insurance gap
Small and medium-sized enterprises (SMEs) are the backbone of our economy – driving innovation, creating jobs and fostering growth.
And yet the term SME covers a wide range, from businesses with between 10 and 250 employees, or with turnover between £1.7m and £42m.
Such a wide spectrum can create significant challenges for brokers that need to secure affordable credit insurance to protect SME clients against the risk of non-payment by their buyers.
A single contract credit insurance policy is designed to fill this critical gap, providing brokers with a powerful tool to support SME clients. In fact, it might just be the best-kept secret in trade credit insurance.
A new era of flexibility
In a market dominated by established players, the options for SMEs have often been inflexible.
Gone are the days of forcing round coverage requirements through expensive, square holes.
Allianz Trade’s single contract credit solution offers flexibility, with contract lengths ranging from two months to three years.
This means clients aren’t locked into long-term commitments they don’t want or need. We’re not limited to any particular sector and there’s no minimum premium threshold.
For our broker partners that pride themselves on solutions that are as innovative and unique as each of their clients, single contract credit insurance is the ultimate tool.
No contract is too small
The lack of suitable placement options for SMEs means brokers often miss out on significant business opportunities.
At the smaller end of the spectrum, premiums for the protection and contract duration an SME needs are often too low to appeal to the multi-line insurers that offer trade credit insurance, but dedicate their trade credit capacity to much larger deals.
Faced with inflexible policy durations and terms that are just too expensive for their SME clients, a broker balancing clients’ needs and their own profitability might choose to drop this business altogether.
While small, each of those policies adds up. When considering the monetary value of lost premium brokers are missing out on placing, it’s easy to see how that number could extend into the millions of pounds across hundreds of lower priced, higher frequency policies each year.
Deeper client relationships
The potential for repeat business is a significant benefit of Allianz Trade’s single contract credit insurance solution.
By providing a reliable and flexible credit option, brokers can continue to provide the cover to protect their clients against non-payment risks at every stage of their evolution, from start-up to the larger end of the SME scale.
Ongoing support fosters trust and loyalty, leading to repeat business and sustained revenue streams over many years. It also enhances the broker’s reputation as a trusted advisor.
Allianz Trade’s single contract credit insurance solution is a game-changer for brokers and SMEs alike, filling a critical – and lucrative – gap.
Brokers can leverage this innovative solution to support the growth and success of SME clients, ultimately contributing to a more robust and dynamic economy.
In a world where financial agility is key, single contract credit insurance is an essential tool for brokers aiming to drive success for their clients, whatever their size.
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