In-depth - commercial lines: SMEs’ underinsurance problem

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Underinsurance remains a dark cloud in the SME sector. Talk to brokers, insurers, loss assessors and trade bodies and they will all say the issue is “systemic” and “chronic”.

According to experts, the problem lies with SME commercial line clients preferring to buy insurance like a lay consumer. The crux is that the smaller end of the market is more comfortable with cheap insurance products which most resemble personal lines, such as property. They are not spending enough time looking at their su