According to the second round of findings of the QBE Singapore SME Survey most respondents have concerns about a wide range of businesses risks, yet very few hold insurance policies to protect their companies against the financial fallout from these.
A QBE Singapore press release said the survey held between December 2024 and January 2025 saw 600 decision-makers give their views on a wide range of business risks and opportunities, including workplace safety and health, talent retention and insurance-related issues among others.
Some 74% of SME leaders participating in the survey are highly and moderately concerned about loss of income due to businesses interruption, yet only 23% hold an insurance policy for this risk. Likewise, 72% have high and moderate levels of concern for damage to or loss of inventory, while only 29% have an insurance policy that covers this. Similarly, 72% are highly and moderately concerned about fraud and fraudulent payments, but just 17% hold an associated insurance policy.
QBE Singapore head underwriting, retail and SME Shun Quan Goh said, “Singapore’s SME leaders are understandably concerned about a wide range of risks, yet the proportion of businesses that hold an insurance policy to meet these is low and somewhat surprising — especially given the financial consequences should these risks materialise.”
Almost three fourth (70%) of this year’s respondents said price is the number one consideration when purchasing insurance; and their second consideration was having insurance that helps the business to operate and serve customers better (68%).
In 2023, spending time and effort in choosing the right insurance policy for the business was most important (70%), followed by price concerns (67%). This pricing sensitivity is in line with a less than positive business outlook this year compared to last year shown by the respondents.
Mr Goh said, “Given today’s uncertain economic conditions, it is no surprise that price is now the top concern of policyholders. This underscores the caution many SMEs have when it comes to expenditure and managing their company finances, even at the risk of being underinsured.”
Singapore SMEs are notably upping their focus on mental health as well. Some 93% of respondents said it is either very important or somewhat important, up from 89% last year. More SMEs are also implementing measures to improve both mental and physical wellbeing as well, with 59% offering flexible working hours for improved work-life balance. It was 44% in 2024 and 45% now offer work from home arrangements, rising from 35% in 2024.
Almost half (49%) of respondents view talent and manpower as an important businesses challenge, rising from 37% in 2024. As such, many are exploring new ways to attract and retain workers. Flexible working is now the number one strategy for keeping the right and best staff, 51% of respondents said, versus 32% in 2024.
For the first time, this year’s survey explored attitudes and approaches to older workforces. In Singapore, the employment rate for workers aged 65 has been increasing over the past decade and looks set to continue. In 2023, 9.2% of workers in Singapore were from this age group, according to government data; and by 2030, some predict it will reach 10.6%.
Singapore SMEs are a noteworthy employer of this age group according to the survey, with 41% saying their workforces are made up by 10% or more of this demographic. Some 44% of respondents view this age group as experienced and skilled, with 39% believing them to be (more) loyal; and 31% describing them as stable.
QBE Singapore CEO and CEO of Wholesale Markets Asia Ronak Shah said, “With over 70% of this age group in employment in Singapore, workers aged 65 or over are an increasingly important part of Singapore’s labour force. With so many companies focused on hiring the best staff, whatever their age group, this is highly encouraging.”