A recent survey conducted by QBE Singapore reveals that while Singaporean small and medium-sized enterprises (SMEs) are highly concerned about various business risks, their insurance uptake to protect against potential financial losses remains significantly low. The survey, conducted from December 2024 to January 2025 with 600 decision-makers, gathered insights on various business risks and opportunities, including workplace safety, talent retention, and insurance-related issues.
Key Findings:
High Risk Awareness, Low Insurance Uptake:74% of respondents expressed high concern about income loss due to business interruption, but only 23% had relevant insurance coverage.
72% were concerned about inventory loss or damage, with only 29% having related insurance.
72% were concerned about fraud and payment irregularities, with only 17% having relevant insurance.
Increased Price Sensitivity:70% of respondents cited price as the most critical factor when purchasing insurance.
The second most important factor was insurance that helps improve business operations and customer service (68%).
In 2023, the most critical factor was spending time and effort on selecting appropriate insurance products (70%), with price being the second most important (67%).
Employee Welfare and Talent Retention:93% of respondents considered mental health very or somewhat important.
59% of businesses offer flexible working hours to improve work-life balance.
49% of businesses recognize talent and workforce issues as significant business challenges, with flexible work emerging as a key retention strategy (51%).
Utilization of Older Workers:41% of respondents reported that over 10% of their workforce is aged 65 or older.
Older workers were valued for their experience and skill (44%), high loyalty (39%), and stability (31%).
Expert Opinions:
Shun Quan Goh, Head of Retail and SME Underwriting at QBE Singapore, expressed surprise at the low insurance uptake despite high risk awareness, especially given the potential severe financial consequences. He also noted that price has become the top concern for insurance buyers in today's uncertain economic climate.
Ronak Shah, CEO of QBE Singapore and CEO of Asia Wholesale Markets, highlighted the significant role of older workers in Singapore's workforce, given that over 70% of those aged 65 and above are employed. He praised the focus on hiring the best talent regardless of age.
Singaporean government data indicates that 9.2% of the workforce was aged 65 or older in 2023, projected to reach 10.6% by 2030. The Singaporean government is promoting policies to encourage the employment of older workers in response to the aging population. Singaporean SMEs are also implementing various welfare policies to attract and retain talent, with flexible work arrangements gaining popularity.
[Copyright (c) Global Economic Times. All Rights Reserved.]
