GlobalData surveying has found that more than 40% of UK SMEs have been offered insurance by their main bank, but just under a quarter went on to purchase it. Meanwhile, HSBC UK and Gallagher have partnered to provide insurance services to HSBC’s commercial banking customers.
GlobalData’s 2025 SME Survey found that 43.1% of UK SMEs were offered insurance through their main business bank. However, only 22.7% went on to buy the product from their bank, while 47.7% chose to purchase similar cover elsewhere. These results indicate a clear conversion gap. Banks are reaching many SMEs at the point of offer, but a large share still place coverage elsewhere. This suggests the bank proposition is often not competitive enough on price, breadth of cover or perceived quality of advice. It may also reflect that SMEs prefer to compare options and use specialist intermediaries when insurance needs feel complex.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Meanwhile, HSBC UK has partnered with Gallagher to provide insurance services to its commercial banking customers. Under the arrangement, businesses with insurance needs will be referred to Gallagher for specialist insurance advice, risk management support, and access to insurance products. HSBC UK said the partnership is intended to make it easier for commercial customers to access specialist expertise so they can spend less time dealing with insurance and more time focusing on day-to-day operations and growth.
If executed well, partnerships that combine a bank’s distribution reach with broker-led advice and broader market access could help close the conversion gap by improving relevance, service quality, and customer confidence. However, success will ultimately depend on whether SMEs see a clear improvement in value, choice, and convenience compared with shopping around independently.
