Only 22.7% of UK SMEs purchase insurance from their bank despite 43.1% receiving offers, highlighting a conversion gap.
UK small and medium-sized enterprises are largely rejecting insurance offers from their main banks, with just 22.7% of those approached opting to buy coverage directly. A survey found 43.1% of SMEs were offered insurance by their bank, but nearly half chose alternative providers instead.
The data suggests banks struggle to compete on price, coverage breadth, or advisory quality, prompting SMEs to seek specialist intermediaries. Many prefer comparing options rather than accepting bank-proposed policies, particularly for complex needs.
HSBC UK has partnered with broker Gallagher to refer commercial customers for specialist insurance advice and risk management. The move aims to streamline access to expertise, allowing businesses to focus on operations rather than insurance procurement.