I refer to the article "RebusIS profits leap" (3 July, Insurance Times). It's pleasing that RebusIS chief executive Bob Gogel believes, like we do, that the industry is embracing IT after a lean period.
However, I must dispute his statement that smaller firms just can't invest to follow their clients, and, therefore, face consolidation. This does not apply to companies, like ours, that have been well run over the years.
Eurobase has been extremely prudent by diversifying while managing the business well. We've built up a £7m cash balance to guard against this downturn. This has enabled us to invest nearly £2m in R&D in the past 12 months in our products for our customers, who are insurers in the London, captive, reinsurance and international markets.
I wonder how much R&D, in real terms, has been spent by the likes of Sherwood and Rebus.
So, the so-called big are not necessarily beautiful. But they are well-managed, cash-rich players, who have to invest in only one product for each market - not the many products which occurs with consolidation - and will have a far greater voice in the coming 18 months as this consolidation continues.
Good business sense requires funds for continual investment in products and long-term customer relationships. A dedication to customer relations is something the best run companies can focus on both today and ad infinitum.
John Wilson
Chairman,Eurobase International Group
Send letters to: Insurance times, 30 Cannon Street, London, EC4M 6YJ or Email to
Letters@instimes.co.uk or Fax : 020 7618 3499
