Better business - SME: Shining a light on underinsurance

Underinsurance remains a perennial problem for SMEs and it is an area of renewed focus for the insurance market in the wake of recent changes to the Ogden tables, which set the payout levels for catastrophic injuries.

In recent years the Financial Conduct Authority has expressed its determination to prioritise the issue of underinsurance and raised its concerns in a 2015 thematic review entitled Handling of insurance claims for small and medium-sized enterprises.

This article highlights why educating SME clients about the perils of underinsurance and persuading and advising them to take out appropriate levels of cover has never been more important.

Topics covered:
• Better BI.
• Time is money.
• Emphasis on education.
• Real life consequences of underinsurance.