The cost of cover has not seen any significant uptick in price since the aftermath of the 9/11 terrorist attacks.

Indeed, despite the low regard in which insurance firms and their products are often held by members of the public, commercial insurance offers policyholders good value for money, as long they have the relevant cover for their operations.

And therein lies the rub. Because the risks that businesses face are continually evolving as their customers’ buying habits change; and the legal and regulatory landscape move to a more consumer-friendly space.

Meeting the demands of SME's

From the growing exposure and liabilities that directors - even of SMEs – face in the event of litigation from staff or members of the public; to the threat of cyber attacks from hackers around the corner or thousands of miles away, businesses need to make sure their policy coverage is fit for purpose in the twenty teens.

But there is also an onus on the insurance industry to make sure that it is offering products that meet the demands of these businesses. The industry must ensure that customers are correctly advised and informed how these products could help them in the unfortunate event of a claim.

Insurance should not be a totally mystifying grudge purchase that sees a buyer resent a supplier that could prove to be their saviour. But as things stand today that is often the case.

Going forward

As such Insurance Age’s readership – insurance brokers – continue to play a significant role in making sure that when that moment of truth – a claim – happens, commercial clients are not only fully covered, but have an ally to help them get back on their feet as soon as possible.

But as I have already mentioned consumer habits are changing, and insurers and brokers need to embrace the potential of digital and omni-channel as much as retailers have. Policyholders expect, no demand, the same service whether they are buying groceries, clothes or business insurance.

The argument that it is too complex to digitise will not stick, and if the incumbents and traditionalists maintain this stance then you can guarantee they will be replaced by new market entrants and disrupters who will happily fill the void. No doubt with simpler and less jargon heavy policy wordings.