Network on track to place £600m GWP by year end
Acquisitions by broker members in 2014 will help Brokerbility network to hit its target and grow its combined gross written premium by £60m to £600m by the end of the year.
Brokerbility managing director Ian Stutz hailed 2014 as a year of “optimism” for members, as the network also experienced organic growth of 3%, with £38m growth coming from new and existing business.
Acquisition by members, including Alan and Thomas, KTIB and Clear Insurance Management, added around £22m.
Stutz said: “We are in good shape as we come to the end of the year – it has generally been good growth throughout.”
One broker, George Stubbs, joined in 2014 taking its membership count to 35 - but Stutz said he was “happy” with the numbers because Brokerbility’s growth strategy was not focused on volume but the profitability of the books of business.
Only one member left in 2014.
The network also wants to add two more brokers from Scotland next year as it plots to further expand into the region.
“With two potentially to come in from Scotland that would be our optimum number,” he added.
“But saying that, a couple of our brokers are in talks to buy other brokers within the network and that would create opportunity.”
Micro SME development
Last year Stutz predicted that micro SME would be a major strategic issue for brokers and insurers.
Brokerbility is now developing a new proposition for micro SME products to be sold via its Broker Tech platform.
It acquired 100% of the share capital of Broker Tech last year, which gives its network members a controlling interest in the technology solutions provider of business traded online.
Stutz said: “Our brokers are about giving good advice to the clients – in that micro SME space we are still in a position to sell a product and give good advice.”
For the more complex non-micro SME products, that often need more advice and are typically sold alone or with larger commercial risks, the network wants to increase the range of products available on the platform from 24 to 40.
Brokerbility is also now part of Trust Risk, a global broker network, which enables its members to place business globally. It joined in May.
Brokerbility members earn a fee from introducing their clients to overseas brokers who are members of Trust Risk.
Stutz said: “When you go into this network the client gets a local service. For the low end global corporate business, an independent broker can give a much better service than a global broker.”