QBE Insurance has announced a second round of findings from this year’s QBE Singapore SME Survey. Between December 2024 and January 2025, 600 decision-makers gave their views on a wide range of business risks and opportunities, including workplace safety and health (WSH), talent retention, and insurance-related issues, among others.
A noteworthy finding from this year’s edition is how 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.
Some 74% of SME leaders 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.
“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,” remarked Shun Quan Goh, Head, Underwriting, Retail & SME, QBE Singapore.
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%). Last year, 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. “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,” added Mr. Goh.
Attention to work safety remains high, while mental health attracts greater focus
Attention to WSH issues remains high but has slipped slightly year-on-year. In 2024, 81% of respondents said they communicate coverage and benefits to their employees, versus 78% in 2025. While last year, 77% said they have return-to-work processes in place, versus 72% this year.
Likewise in 2024, 70% said they are fully informed of work injury compensation (WIC) — insurance coverage that is compulsory under Singapore law — versus 66% in 2025. This year’s low number of accidents may be behind these reductions: just 27% of businesses experienced between one and three WSH events over the past year.
However, Singapore SMEs are notably upping their focus on mental health. 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, up from 44% last year; and 45% offering work from home arrangements, rising from 35% in 2024.
Talent and manpower retention; and high employability among older workers
Almost half (49%) of respondents view talent and manpower as a key business 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.
Yet, heightened staff concerns aren’t backed up with action: the number of SMEs who expect to make changes to their workforces in the next 12 months has declined. Some 46% expect changes in staff training, down from 52% a year earlier; while 36% expect to strengthen their staff, against 42% last year; with 40% expecting changes to the size of their business, down from 44% in 2024.
For the first time, this year’s survey explored attitudes and approaches to older workforces. Singapore SMEs are a noteworthy employer of this age group, the survey reveals, 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.
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%.
An older workforce may need more support from employers. While ageing impacts individuals at different speeds, over time, response times may slow, people have less physical strength, and are potentially more vulnerable to illnesses than younger workers, among other considerations.
It is therefore critical that employers instil work policies that reflect these traits, as well as seek measures like insurance to future-proof risks that emanate from a changing workforce.
Ronak Shah, CEO of QBE Singapore and CEO of Wholesale Markets Asia 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.
We will certainly be doing more in this space as this is a societal issue that insurers can play an active part in. It is also heartening to learn that other factors beyond pay are highly valued by SMEs and their employees, including work-life balance and work-from-home arrangements. These are all tangible benefits and changes that SMEs can make in having the best people help navigate through today’s evolving risk landscape.”