Moorhouse's £40m deal with Cobra shows why networks continue to attract partnerships
Broker Moorhouse was the latest business to jump on the network band wagon – but not in the form of a member.
By agreeing a distribution deal with the Cobra Network, the Welsh broker will promote its Xbroker quotation platform to almost 130 Cobra brokers.
The deal is worth £40m over five years and will see the creation of a Cobra branded white-label version of Xbroker.
For Moorhouse it is an easy way to gain access to other brokers, but the network itself will see it as a boost to its current offering – keeping its members happy and also adding to the attraction for potential members.
This is not the only tie-up with a network in recent months. The online SME comparative quote facility iprism signed up two networks in the form of the 1 Answer Network and UKGI.
Iprism CEO Gary Burke said at the time: “Networks are very topical at present as a means for smaller brokers to retain their independence. This fits perfectly with iprism which provides access to markets for smaller brokers and that is also a big part of the answer to the question of how smaller brokers can continue independently.”
In October insurer Groupama joined Keychoice, a business network for users of SSP systerms, in a commercial initiative created to deliver a wider range of commercial lines products to its 750 members and drive growth in the SME market.
Add to that Towergate’s acquisition of the Broker Network and it is clear that networks add value in many ways and exclusive partnerships look set to continue.