Business generated through appointed representatives now makes up a third of broker’s £1.8m annual income
Willis Commercial Network member Gauntlet Group has hailed the use of appointed representatives (ARs) as a significant contributor to the growth of the company.
Managing director Roger Gaunt said the amount of revenue generated from business done by ARs now made up a third of the broker’s £1.8 annual income - up 20% from the previous year income of £1.5m.
Gaunt added, that staff uncertain about their future within the larger consolidators, were also setting out on their own and joining the broker as ARs.
Over the last three years, Gauntlet, which also specialises in coach, haulage and fleet, has grown the number of appointed representatives it has to 26.
It plans to grow the number by an additional 14 over the next year.
Gaunt said: “Typically the AR will have a quiet 12 months where they are finding their feet, developing their contacts.
“It can take a good 12 months to get established. It generates a big boost for them and a big boost for the company as well.”
Gaunt said an integrated IT and back office system enabled the broker to maintain a consistent level of service between the types business traded by ARs and the rest of the company.
This method has also given insurers confidence that relationships are being managed in a compliant way, Gaunt added.
“Insurers like to know how we control the ARs. Initially they were concerned and wanted to know how we were managing the relationships.
“Managing someone that is working remotely is hard work and unless you have really good systems and transparency it can move into all sorts of compliance costs.
“All our appointed reps work off our computer system, so they can see what we are doing and we can see what they are doing. Files are regularly audited and we have strict rules that ARs have to follow.”