Vero's 2026 SME Insurance Index Uncovers Critical Risk Management Disparities

The survey, encompassing over 1,500 Australian businesses, indicates that 75% of small businesses have never conducted a risk analysis. This lack of structured risk management is particularly concerning given that 43% of small businesses reported a decline in revenue over the past 12 months. In contrast, 64% of large businesses have adopted mature risk management processes, highlighting a stark contrast in preparedness levels.

This 'two-speed economy' underscores the need for small businesses to prioritise risk management and business continuity planning. Economic pressures are most acute for small and micro businesses, with 61% of micro businesses reporting lower revenue in the past year. Without comprehensive risk management strategies, these businesses remain vulnerable to unforeseen events that could further impact their financial stability.

For SMEs, developing and implementing structured risk management processes is essential. This includes conducting regular risk assessments, establishing business continuity plans, and staying informed about potential threats. By doing so, small businesses can enhance their resilience, improve their insurance profiles, and better navigate the challenges of the current economic landscape.