Study on the Needs of Small and Medium Enterprises (SMEs) in terms of Short Term Insurance
Mthente was commissioned by Mutual & Federal Insurance Company Limited to conduct a study on the Small and Medium enterprise (SME) sector with regards to their short-term insurance requirements. The purpose of this study was to determine the short-term insurance needs and preferences of SMEs in Gauteng and to translate these into product recommendation that could be offered to meet the needs of SMEs.
The research was informed by a benchmark study of the product offerings of Mutual & Federal’s competitors, as well as a survey with SMEs operating in the manufacturing, wholesale/retail and services sectors in Gauteng. In total 450 SMEs were contacted.
A second survey was commissioned to gain a deeper understanding of the buying patterns and behaviours of the Small, Medium and Micro Enterprises (SMME) sector when purchasing commercial insurance. Attention was also given to their short-term insurance requirements. This survey was informed by 101 interviews with SMMEs operating in Gauteng.
The knowledge gained from the research on the needs and expectations of SMMEs contributed to the launch of a pilot in the fourth quarter of 2014, and the ultimate product launch in 2015.
