Small and medium-sized enterprises (SMEs) represent around 97% of all enterprises in New Zealand and contribute roughly a quarter of national output*. For brokers, that is not just an economic statistic. It defines your core client base. Vero’s latest SME research highlights how these businesses are experiencing sustained revenue pressure, rising operational complexity and emerging risks, all of which are reshaping the advice conversations brokers are having every day.
Based on a national online survey of 550 SME owners and insurance decision-makers conducted in October 2025, the 2026 findings provide practical insights that support more informed and proactive engagement with SME clients.
Revenue pressure is shaping insurance decisions
In Vero’s research, 63% of SMEs report revenue declines. For brokers, that context matters. Clients under financial pressure are scrutinising every outgoing cost, including insurance premiums, limits and excess structures.
This environment reinforces the importance of clear advice. Rather than focusing solely on price, brokers have an opportunity to guide clients through structured conversations about cover adequacy, risk appetite and trade-offs. Where insurer partners can support those conversations with flexible options, product clarity and underwriting expertise, the value proposition becomes easier to demonstrate.
Sacha Cowlrick, Executive General Manager at Vero New Zealand, says small and medium-sized businesses are operating in an increasingly complex risk environment. As brokers, you’re often the first call when something goes wrong, and increasingly when owners are simply trying to understand what risks matter most to them.
“In a market defined by cost pressure, positioning insurance as part of a resilience strategy rather than a compliance exercise is critical.”
Stable relationships, untapped advisory potential
The research shows that 61% of SMEs have been with the same broker for at least three years.
Retention is strong, and switching remains relatively infrequent. That stability creates a platform for deeper engagement.
However, less than 30% of broker-using SMEs say they have received risk advice from their broker. This signals a significant advisory opportunity.
“We know brokers play a critical role not just in placing cover, but in helping customers better understand risk and build resilience,” Cowlrick says. “Our research shows there’s significant headroom to deepen those conversations.”
The research shows that for brokers, this is less about adding new services and more about making existing expertise visible. Annual renewal meetings can evolve into broader risk reviews. Claims discussions can become prevention conversations. Insurer insights, data and sector trends can be woven into client interactions to strengthen the advisory proposition.
Importantly, 40% of SMEs say they would consider using a broker, or using one more often, in the future.
The greatest opportunity sits with moderate users who already see value but have not fully engaged.
Guidance, cost transparency and expertise are the primary drivers for those considering increased broker engagement. These are areas where strong broker-insurer partnerships can make a tangible difference.
Resilience is recognised, but rarely formalised
Only a quarter of SMEs consider their business to be very resilient, yet six in 10 expect to face at least one major risk. For brokers, that gap between awareness and preparedness is a clear call to action.
Nearly half of businesses never or rarely conduct risk analyses, while just 30% do so frequently. Formal risk management processes remain underdeveloped across much of the SME segment.
This presents a strategic opening for brokers to step into a structured risk advisory role. Even simple tools, such as guided risk checklists, scenario discussions or business interruption walkthroughs, can materially lift a client’s resilience awareness.
“Resilience isn’t just about bouncing back after an event,” Cowlrick says. “It’s about understanding your exposures, planning for disruption and making informed decisions before something happens.”
Where insurers can provide sector insights and underwriting support to back those conversations, brokers are better positioned to help clients translate awareness into action.
Emerging exposures demand proactive dialogue
Two areas highlighted in the research have direct implications for broker advice: artificial intelligence and lithium-ion batteries.
Just over 40% of SMEs have started integrating AI into their operations. For brokers, the conversation is less about the technology itself and more about how it is used. The research suggests many businesses see AI as a productivity tool. However, it should not be viewed as a substitute for structured risk management processes or professional advice. AI can help generate ideas, surface scenarios, or streamline tasks, but it does not replace informed judgement, tailored cover or a clear understanding of a business’s unique exposures. This is where the broker relationship remains central. Used well, tools and technologies can support better conversations, but your broker and structured risk assessment tools, such as Vero’s Risk Profiler, remain the guide, helping SMEs interpret insights, prioritise actions and ensure their insurance programme evolves in step with operational change.
Similarly, a third of SMEs report using lithium-ion batteries, with fire identified as the most top-of-mind associated risk. From e-bikes and tools to backup power systems, battery usage is becoming commonplace.
For brokers, these are not theoretical risks. They are operational realities emerging within client businesses. Proactive questioning around new technologies, storage practices and safety protocols can ensure coverage keeps pace with changing exposures.
Insurer partners, who are closely monitoring these trends and evolving underwriting approaches accordingly, can help brokers stay ahead of client risk changes, rather than responding after a loss.
The perception gap around going direct
The research also examines why some SMEs choose to go direct. Cost and convenience are commonly cited reasons. Yet when asked about the advantages of using a broker, expertise and tailored advice consistently rank highly.
This suggests that brokers do not lack value. The challenge lies in consistently communicating it.
“Since 2017, we’ve invested in ongoing SME research to provide practical insights that support better conversations with your clients,” Cowlrick says. “Clear articulation of claims advocacy, policy interpretation support and strategic risk guidance can help close the perception gap. When supported by insurers that prioritise clarity, responsiveness and broker partnership, that value becomes even more visible to clients.”
Deepening engagement with moderate users
Moderate broker users represent the largest opportunity for growth in engagement. These clients are already within the broker ecosystem but may not be accessing the full breadth of advice available.
Motivators to adopt more formal risk management processes include clearer guidance and practical frameworks. Brokers can respond by structuring their service model around regular risk touchpoints, not just transactional renewals.
This might include:
• Scheduled resilience check-ins aligned to renewal cycles
• Sector-specific insights shared throughout the year
• Leveraging insurer data and research to support client planning.
In a climate where 63% of SMEs are experiencing revenue pressure, demonstrating proactive value strengthens retention and long-term partnership.
A shared responsibility to build resilience
The 2026 research paints a picture of SMEs that are aware of risk, cautiously adapting to new technologies and seeking guidance in uncertain conditions. For brokers, this is an opportunity to reinforce your role as trusted advisers.
“SMEs aren’t just businesses. They’re people, families and communities,” Cowlrick says. “Working together, we can help them better understand risk, build resilience and make informed insurance decisions that support their long-term success.”
When brokers and insurers align around practical insight, responsive underwriting and meaningful support, the advisory model becomes more than a distribution channel. It becomes a resilience partnership.
Vero’s latest SME research offers brokers data-driven insight to support those conversations and strengthen client relationships in a market where advice, clarity and partnership matter more than ever.
To view the insights and Vero’s Risk Profiler tool, visit Over & Above on the Vero website.This article is based on independent third-party research commissioned by Vero Insurance New Zealand Limited and conducted among 550 SME decision-makers in October 2025. It is intended for general information purposes only.
