Shifting risks for SMMEs demand new approach to small business insurance cover

SMMEs typically the most vulnerable of commercial enterprises must fortify themselves to both survive and take advantage of an evolving business landscape. From rising inflation, geopolitical conflicts and a recalibration of global trade hierarchies to technological breakthroughs and rising climatic risk, the pace of change is unrelenting.

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In response, a shift is underway within the local SME insurance landscape from traditional, reactive cover to proactive, tech-enabled solutions that cater for multifaceted risks and provide greater accessibility for small business owners. Several emerging trends are powering this change.

Tech-powered innovation

While the majority of SMMEs are owned by older entrepreneurs (45 to 54 years old), 30% of South Africa's SMME owners are younger than age 35.

These tech savvy SMMEs expect the same seamless digital experience from their daily grocery delivery provider as they do from their insurer.

Insurers are fast-tracking the adoption and integration of digital tools to improve efficiency and customer service across all areas of the business.

Additionally, Al is supercharging bigdata usage allowing insurers to create hyper-personalised policies.

For SMMEs, this will impact traditional cover types such as Key-Person insurance which can now be tailored at a granular personal level.

Addressing accessibility