Complex Issues such as GDPR compliance plus concerns surrounding cyber security may be causing the UK’s small medium-sized business to overlook the importance of planning for Brexit, finds broker survey conducted by Zurich.
24% of respondents said that their SME clients now ask them about GDPR on a regular basis.
However, regular enquiries about Brexit were recorded by just 10% of brokers, with 35% stating that their clients never asked about the UK’s exit from the European Union at all.
Zurich suggests SMEs lack of resource to address both immediate and long-term planning could be a driver.
“While Brexit contingency planning seems to be all over the headlines, we are registering very low levels of engagement with the issue among smaller businesses in the UK as less strategically important issues take centre-stage,” said Paul Tombs, Head of SME Proposition at Zurich.
According to data, 43% of insurance brokers have seen a significant increase in enquiries about GDPR cover and compliance since the deadline passed compared with before, indicating a limited understanding of GDPR compliance and cover.
Other immediate issues like financial risk, which include late payments and legal claims, are also taking priority over Brexit, 80% of brokers reporting clients seeking guidance on these topics.
Cyber security cover remained one of the biggest issues of all, with 37% of insurance brokers reportedly providing regular counsel to clients.
“The tumult of the last few years has resulted in a number of major risk areas that UK businesses are clearly struggling to find the time and resources to address,” added Tombs.
“Smaller businesses in particular have been forced to spin a lot of plates, complicating the decision-making process and stretching many businesses to breaking point.”