SME retailers and professionals have seen material price reductions on their Public Liability insurance, while prices have remained steady across other products and occupations.
In the last quarter, the annual inflation rate in Australia rose to 1.6 percent[1], with food inflation at its highest in five years and transport costs increasing steadily. The increase did not affect the cost of insurance for small businesses on the BizCover platform as prices dropped to the lowest point in 24 months.
The BizCover SME Insurance Price Index shows that while the overall pricing for small business insurance has remained steady for several quarters, there has been a sharp 3% decrease in the most recent quarter (Q1FY20).
The Bizcover SME Insurance Index is comprised of three industry groups, Professionals, Trades & Services and Retail & Hospitality. Whilst all three groups have experienced no increases in the overall prices for their insurance, there have been changes within product groups and industries. The most significant cost benefits can be seen in Professionals and Retailers, who have seen a 4% step decrease from the prior quarter across all products, driven by both a 5% (Retail) and 13% decrease (Professionals) in the price of their Public Liability insurance for the most recent quarter. This contradicts the steady industry increases we have seen for Public Liability insurance in the broader market. To find out more about insurance options through BizCover, click here.
Michael Gottlieb, Co Founder and CEO of BizCover, sees no immediate changes for SMEs when it comes to their business insurance, commenting “While costs may be rising for Australian’s across other essential utilities and services, it’s positive to see the transparency and contestability of the BizCover platform means small business owners are benefiting from competitive pricing on their business insurance.
We continue to see a growing number of SME’s using the BizCover platform, making the switch from traditional channels to buy their insurance online – with almost 100,000 small business customers across Australia purchasing their insurance through our platform.”
BizCover Customer, Alexandra Goulden, who owns an accounting business, The Number Factory, said that she had received a pleasant surprise when renewing her insurance in August this year. “I was delighted to realise that the cost of my business insurance had actually gone down by $15, when you normally expect your insurance to go up. It may not sound like much, but when the cost of living and running my business is ever increasing, it’s a relief to see that my business is still being protected, without adding another figure to the price tag.”
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[1] Annual Inflation Rate https://tradingeconomics.com/australia/inflation-cpi
