Singapore SMEs Face Risks and Workforce Challenges, QBE Insurance Survey Reveals
A new survey from QBE Insurance reveals that Singaporean SMEs are aware of key business risks, but many remain underinsured. The survey also highlights shifting priorities in workforce strategies, with a growing emphasis on mental health and flexible work arrangements.
Conducted between December 2024 and January 2025, the QBE Singapore SME Survey gathered insights from 600 decision-makers regarding business risks, workforce priorities, and insurance coverage.
Business Risks Outweigh Insurance Coverage
Despite recognizing key business risks, many SMEs remain underinsured. The survey found:
- 74% of respondents are concerned about business interruption, yet only 23% have insurance for it.
- 72% worry about inventory loss, but just 29% hold relevant insurance policies.
- 72% express concerns about fraud, yet only 17% are insured against it.
Shun Quan Goh, Head of Underwriting, Retail & SME at QBE Singapore, commented on these findings. “SME leaders are aware of risks, yet the low uptake of insurance is surprising given the potential financial impact,” Goh said.
Workforce Priorities: Mental Health and Flexibility
Workplace safety continues to be a priority, but there’s a slight decline in communication around it. Mental health, however, is gaining more attention. The survey also revealed:
- 93% of SMEs acknowledge the importance of mental health in the workplace.
- 59% now offer flexible work hours (up from 44%).
- 45% allow remote work (up from 35%).
Talent Retention and The Ageing Workforce
Talent retention has emerged as a significant concern. The survey also examined the role of older workers and found:
- 49% of SMEs cite talent retention issues (up from 37% in 2024).
- 51% have adopted flexible work arrangements as the top retention strategy (up from 32%).
- 41% report at least 10% of their workforce is aged 65 or older.
Ronak Shah, CEO of QBE Singapore, emphasized the increasing role of older workers: “With over 70% of this age group in employment, their role in Singapore’s labour market is growing. Businesses and insurers must adapt policies to support this demographic.”
Balancing financial risk management with smart workforce investments will be crucial for long-term resilience as Singapore’s SMEs navigate ongoing economic uncertainty.
