More than half (51%) of SMEs say their total insurance costs have increased in the past 12 months with 12% registering a dramatic increase, according to the latest Insurance Index from premium credit provider Premium Finance. In contrast, the index found that only 2% had reported a drop in their insurance costs.

The survey found that 43% of SMEs value the ability to pay monthly compared to 32% who prefer to pay for their insurance annually.

Adam Morghem (pictured), strategy, marketing and communications director at Premium Credit, said: “SMEs are generally facing rising insurance costs and our study shows many have seen dramatic increases in their insurance bills.”

He added: “Premium finance is creating opportunities for businesses through convenient payments as they buy their insurance, helping firms spread payments to better manage their finances and cashflow.”