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Daily Insurance Industry News
Thursday 18th of January 2018
September 29, 2009

Aviva: 56% of SMEs diversify to survive

by Richard Kilner

Story link: Aviva: 56% of SMEs diversify to survive

Aviva: 56% of SMEs diversify to survive

According to new research by Aviva over half of SMEs (small and medium-sized enterprises) have embarked upon a diversification strategy to enhance their chances of surviving the recession.

Broadening the product/service range, weekend opening, lengthening opening hours and widening the customer base are all common steps that have been taken by SMEs to try and shore up their position.

Less popular options include reducing headcount, lowering pay and offering new discounts.

Only one in 50 of those surveyed confirmed they had requested support from one of the Government’s business assistance programmes.

Worryingly the recession is causing some businesses to take risks, with 12% going without commercial insurance.

Commercial Product Manager David Bruce has said that the large degree of diversification of Britain’s SMEs is a sign of versatility and flexibility, but went on to express concern that some firms may be going without the legally required employers liability insurance and this means operating illegally.

In August Aviva offered suggestions to insurance brokers on how best to weather the recession, advising them to be responsive to customer needs and to foster strong business relationships.

 

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