UK SMEs are facing increasing levels of underinsurance, says new study

The study concluded that inflation, supply chain disruption and labour shortages are not just creating challenging business conditions, but are also putting businesses at increased risk of becoming underinsured. Research of more than 500 SMEs on behalf of the insurer, Aviva, found that one-third (32 per cent) of SMEs do not take inflation or supply chain issues into consideration when reviewing how much to insure their business for.

Jason Chambers, Head of Underwriting Automation at Aviva, said, “SMEs have faced a tumultuous couple of years, and have come through the challenges posed by Covid, only to face some of the most challenging economic headwinds of the last few decades. Our research shows that many SMEs are in the dark about how inflation, supply chain disruption and other macroeconomic and global issues can impact their own business in the event they have to make a claim.”