Inside the SME Risk Index

Why It Matters

By shifting from pure placement to advisory risk management, brokers can unlock new revenue streams while safeguarding SMEs against emerging technology and operational hazards.

Key Takeaways

• SMEs demand risk advice beyond simple insurance placement
• Only a small fraction of SMEs actually receive broker guidance
• Brokers can add value by tailoring cover and cost‑saving structures
• AI adoption raises data privacy and cyber risks for SMEs
• One‑third of SMEs use lithium‑ion batteries, needing safety guidance

Summary

The 2026 Vero SME Index, released on Insurance Business TV, paints a stark picture of New Zealand’s small‑business sector. Falling revenues, soaring fuel costs and an increasingly tangled risk environment are squeezing SMEs, while simultaneously highlighting a growing service gap for insurance brokers.

The survey shows 63 % of firms reporting revenue decline and a strong appetite for risk advice, yet only a minority actually receive it. Brokers are urged to move beyond price‑shopping, offering tailored cover, cost‑saving structures and proactive risk reviews. AI adoption is now at 40 % of SMEs, bringing data‑privacy and cyber‑security concerns, while one‑third use lithium‑ion batteries, exposing fire and liability risks.

Vero’s underwriting manager Michaela Dixon emphasized, “It’s not about finding the cheapest premium; it’s about fit‑for‑purpose cover and trusted partners.” She warned that free AI tools can train on sensitive data, and highlighted Vero’s risk‑profiler tool for battery safety as a practical resource brokers can deploy.

For brokers, the index signals a clear revenue opportunity: embed advisory services, educate clients on AI governance and battery safety, and deepen relationships. Firms that evolve into trusted risk consultants will capture market share and help SMEs navigate a volatile economic landscape.

Original Description

New Zealand SMEs are under growing pressure as falling revenue, rising costs and emerging risks reshape the insurance conversation. In this Insurance Business TV interview, Vero New Zealand’s Mikayla Dixon breaks down what the 2026 Vero SME Index means for brokers, from the demand for practical advice to the risks tied to AI, data privacy and lithium-ion batteries. Watch how the broker role is shifting from policy placement to trusted adviser in a tougher business environment.