Navigating the Future: How SME Insurance Needs Are Evolving
Navigating the Future: How SME Insurance Needs Are Evolving
As the business landscape shifts under the weight of digital transformation, cyber threats, and regulatory change, the insurance needs of small and mid-market enterprises (SMEs) are evolving rapidly. We sat down with our CEO to explore how these changes are shaping the future of business protection, the challenges SMEs face today, and how Sona Insurance is helping clients stay ahead of risk.
Q: How do you see the insurance needs of SMEs and mid-market businesses evolving over the next 5–10 years?
A: Most businesses are becoming increasingly bespoke and knowledge-based, which will heighten the need for tailored professional indemnity and cyber protection. The rise of AI in the hands of criminals is already a significant concern and is expected to continue growing.
At the same time, businesses must consider how to manage risk beyond insurance because certain cyber exposures could become uninsurable due to their magnitude.
Customers today also expect perfection. Any dissatisfaction could translate into liability, making professional indemnity insurance critical, but only if it’s accurately tailored to the right coverage. These are, indeed, interesting times.
Q: What are the biggest challenges SMEs face when buying insurance today, and how well is the market addressing them?
A: After many years in the industry, I’m still surprised sometimes by how little insurance is understood. Insurance is a specialist area because the products are unique. They are based on full disclosure of risk and the principle of “utmost good faith”. Insurers genuinely need to understand every detail of a business, and that requires time and communication.
Our job is to interpret and convey that risk clearly, but we can only do so based on what clients share. It’s essential to ask the right questions and truly investigate what a business needs. If an SME can’t devote the necessary time to the process, sometimes it’s best for us to walk away.
Q: What technologies do you believe will most transform how SMEs purchase and manage insurance in the future?
A: The internet has already started quoting personal insurance. However, it is just “price comparison”, not a cover comparison. If we are not wary of this, then when it starts providing business quotes, I believe we need to be even more wary. All businesses need bespoke cover and bespoke advice
That said, I’d like to see more insurance products that integrate risk management support. Some cyber insurers offer penetration testing in advance, largely to see if they want to insure someone; however, that is an excellent piece of proactive risk management support.
There’s also scope for insurers to use data tools like Google Earth, flood mapping, and crime data to assess risks more intelligently. Some are already doing this, but clients rarely see the full benefit of sharing that insight, even though it would be incredibly valuable.
Q: Many SMEs find insurance complicated and time-consuming. How can insurers simplify the buying journey without losing depth of cover?
A: While I believe clients must dedicate time to ensure accuracy, I do, however, think insurers hide behind the principles of insurance. When they could fundamentally make everyone’s lives easier with a more “blanket” approach to insurance.
Unfortunately, in recent times, it’s easy to become cynical about insurance due to the many examples of insurers appearing to avoid claims, which erodes trust. We have a team of specialist loss adjusters to support clients when claims arise, something not all brokers provide, but it’s increasingly necessary to ensure fairness and efficiency.
Q: How important will personalised, usage-based, or modular policies become in the SME space?
A: I am sure these models will become more prevalent. However, to date, usage-based insurance hasn’t yet succeeded because short-term pricing often becomes uncompetitive, and policyholders naturally try to limit usage.
However, I really like modular policies, as they allow clients to pick and choose the cover they need, offering real flexibility. Personalised cover has always been essential for clients, and it’s what every SMEs truly needs now.
Q: Regulation often lags behind innovation. What regulatory changes might support or hinder progress in SME insurance?
A: Before regulation, the industry relied heavily on reputation. Now, most of the industry focuses on compliance, and I’m not sure the balance is right. I am a massive advocate of a regulatory regime that enhances our collective reputations, but it seems to be at the expense of entrepreneurial spirit.
In the commercial and high-net-worth sectors where we work, some regulatory models are actually driving up costs for clients. That said, non-insurance regulations often create opportunities for new insurance solutions, which is a positive outcome.
Q: How does Sona Insurance position itself to meet these changes head-on?
A: We’re proud members of the WTW Network of brokers, so we help contribute to the regulation discussion. We are also members of the British Insurance Brokers’ Association (BIBA), who advocate on our behalf in regulatory discussions. This helps us stay ahead of industry developments.
At Sona, our philosophy is simple: “invest in our people to reward our clients.” By continually developing our team, we can respond accurately and quickly to changes, which remains really important to our culture and ethos.
Q: What roles do culture and customer trust play in adopting new technologies and models?
A: Culture is everything at Sona Insurance. Enjoying what you do means you have purpose, autonomy and mastery in every role. We will grow, adapt and adopt everything in the delivery of service that comes our way.
It is an incredibly exciting time. Trust, however, comes from people rather than technology, and we have not and never will forget that people relationships are critical to success. Maintaining strong relationships and genuine human connections remains at the heart of everything we do.
Q: Finally, what’s one piece of advice you’d give SME owners about preparing for the future of insurance?
A: Start with a business continuity plan or at least know what you’d do if the worst happened. It doesn’t need to be a fire; it could be a death, it could be a resignation, a flood, a loss of data, the list goes on. We can help with this. We have seen a lot of different things happen!
If you don’t know what you would do if the worst happened, then you won’t be ready for it, and it doesn’t matter what insurance you’ve got, because you won’t know what to actually do and what you need the insurance to help you with.
It can be as simple as a list of phone numbers and e-mail addresses, but have something. Also, make sure it’s written down and not stored only online in case of a cyber-attack.
If you have something in writing, then think about the things that reduce the risk then you have something to tell your insurers. When you’ve planned for the unexpected, you’ll understand what insurance you need and how it will actually help you. Preparation is the foundation of resilience.
Conclusion: Planning for the Unpredictable
The world of insurance is changing fast, and so are the risks that SMEs face. While technology and regulation reshape the landscape, one principle remains constant: insurance is about understanding people and protecting what matters most.
At Sona Insurance Solutions, the focus remains firmly on empowering clients through knowledge, tailored cover, and trusted relationships, helping businesses not just to survive, but to evolve confidently into the future.
AT SONA INSURANCE, ARRANGING INSURANCE IS A HUMAN EXPERIENCE, NOT JUST A POLICY ON PAPER.
We take the time to understand your Insurance needs, ensuring you get precisely the right level of cover, nothing more, nothing less. With deep expertise across offices, retail spaces, industrial units, and leisure facilities, we know the risks you face and how to protect against them.
We pride ourselves on being proactive, not reactive. From the first consultation to policy renewal, we stay closely connected to your evolving needs. Whether you’re expanding your property portfolio or responding to new regulatory requirements, Sona Insurance is your partner in navigating risk with confidence and clarity.
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And find out how we can create an insurance policy that works as hard as you do.
Want to learn more? Explore these resources:
- Property Insurance Solutions for Property Investors
- Protecting Directors’ Personal Assets
- Business Insurance That Works For You
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