NIG’s latest business survey reveals how brokers see the challenges and opportunities facing SMEs heading into 2025.

It shows the industry sectors most worried about the economy, supply chain issues and cyber threats. It reveals the avenues where different industry sectors see opportunities. And it gives a window into how SMEs see insurance and what brokers can do to support them over the next 12 months.

At a Glance

• AI is a top priority for SMEs – both as a concern and as an opportunity
• The environment is lower on SMEs’ list of priorities than anticipated
• The majority of businesses are looking at offering new products or services in the next year

Who took part in the NIG Business Outlook 2025 survey?

As we head into 2025, we asked 501 business owners and financial directors of UK SMEs what they see as their main challenges and opportunities over the next 12 months[i]. We also surveyed 109 brokers who are currently trading with us about their views.

The survey looked at a variety of sectors to understand the nuances in the way they see the landscape:

• Architecture, Engineering & Building
• Arts and Culture
• Finance
• Healthcare
• IT and Telecoms
• Legal
• Manufacturing and Utilities
• Sales, Media and Marketing
• Travel and Transport

SMEs’ biggest challenges

Perhaps not surprisingly, the economy is the main worry for the majority of SME business owners and financial directors in the UK.

Over half of SMEs (54%) see the economy as their number one concern. Brokers have an understanding of this, with 76% ranking it as the number one issue they think concerns SMEs.

But the weight SMEs give this challenge is not evenly distributed across sectors. In some sectors, the economy is the number one worry by a much bigger margin. This is most notable in Sales, Media and Marketing where it is rated as nearly twice as important as any other risk factor in the next 12 months.

Sectors most worried about the economy (% v national average):

• Sales, Media and Marketing (75% v 54%)
• Travel and Transport (64% v 54%)
• Healthcare (64% v 54%)
• Legal (62% v 54%)

Brokers accurately recognise that cyber threats, regulatory issues and the new political landscape are major concerns for SMEs.

But when it comes to environmental issues and AI, perceptions diverge. Environmental issues are only in eighth place on SMEs’ list of concerns, with just 11% naming it as a challenge. But it is in fifth place in the priority order of issues brokers think concern SMEs. Similarly, while only 17% of brokers think AI is a concern for SMEs, almost a quarter (23%) are worried about it.

Certain issues are causing more concern in some sectors than others.

• More than 9 out of 10 senior figures in Manufacturing and Utilities say they are concerned about supply chain issues, nearly 1.5 times higher than the average across sectors (91% v 62%)
• Financial directors are more likely to say they are concerned about supply chain issues than business owners (69% v 58%)
• IT & Telecoms and Finance have more significant worries about cyber threats than other sectors (87% v 79% national average)
• In the Arts and Culture sector, more than half (55%) see AI as their number one concern.

SMEs’ biggest opportunities

AI tops the list, with 39% of SMEs seeing it as a business opportunity. And they are prepared to show their commitment, with more than three in five SMEs (63%) saying they are likely to invest in AI in the next year.

But AI isn’t the only game in town. SMEs are also looking at ecommerce and automation heading into 2025.

Diversification is also seen as key. Three in four business owners and financial directors say they will be looking at offering new products and services in the next year.

Businesses also see opportunity in expansion. And for some sectors, this is hugely important:  the Architectural, Engineering and Building sector (53%) and the Healthcare sector (45%) sector see it as their number one opportunity, rather than AI.

How do SMEs’ see insurance?

SMEs tend to think about what they need from insurance at renewal (32%) or three months before renewal (31%), the survey reveals.

But more than half of brokers (54%) say business should think about their insurance needs whenever they make any changes. And SMEs largely feel the same: 77% of SMEs say they tell their broker when they buy a new piece of equipment, and 76% say they do so when they make a change to their premises.

Brokers’ understanding of SMEs is in evidence when it comes to what they see as preferred solutions for risk management.  Business continuity plans; training of staff and extra insurance cover, for cyber, for example, all being identified as popular options.

With the help of the survey findings, brokers can enhance their understanding of SMEs’ needs and preferences still further, helping them successfully navigate the year ahead.

[i] Source: Sticky/Censuswide SME survey 2/9/94. N=501 Business owners and financial directors in UK SMEs excluding the hospitality sector (18+) 

Source: Sticky/Survey Money NIG Broker Survey  -109 brokers