Brokers can receive help in becoming compliant by joining a network and also stave off the wolves of consolidation to preserve their business. Insurance Times provides a guide to what the major networks can offer
The Broker Network LtdName of network: The Broker Network LtdContact name: Keith McKenzieContact address: Mowbray House, Mowbray Square, Harrogate, HG1 5AUContact number: 01423 877 846Website: www.brokernetwork.co.uk Number of members: 134Qualification for membership: Minimum premium income circa; £750,000. Membership is available to all UK mainland brokers with a growing commercial account. Compliance help package: Inclusive comprehensive compliance supportIT System: Accepts all industry standard platformsInsurer Partners: Norwich Union, AXA Insurance, Allianz Cornhill, Royal & SunAlliance, Zurich, Zurich Risk Services, NIG, Legal & General, Fortis UK, AIG, Ecclesiastical Insurance, Hiscox, Thompson Heath & Bond, Premium Credit, AIUA, Charrington (962), Safeonline, DAS, Cox, Broker Network London Markets, Broker Network UnderwritingService level benefits: Enhanced agency status and commission upliftsCost of joining: £500 + VATOther costs of membership: Percentage deduction based on premium throughput and size of the business, plus monthly membership fee of £95 + VATMinimum period of membership: two yearsContractural restrictions: NoneOther benefits: All support services are inclusive at no extra charge. Services include practical support in marketing, IT, compliance, business management, premium financing, and HR support. Own underwriting agency and Lloyd's broker.Mission statement: To remain the leading support organisation for independent brokers and to continue to be their network of choice.
Camberford Law Network plcName of network: Camberford Law Network plc - branded Network ExtraContact name: Lloyd Hanks, managing director (below)Contact email address: enquiries@network-extra.comOffice address: Lygon House, 50 London Road, Bromley BR1 3RA Contact number: 020 8315 5057Website: Under construction - www.network-extra.com Number of members: At time of questionnaire launch impending.Qualification for membership: Solely commercial lines. Minimum £200,000 premium income on commercial lines (including fleets excluding individual motor). Compliance help package: Each application for membership will receive an initial compliance assessment by Network Extra's director and compliance expert, Ray Stibbards, and his team to assess the broker's compliance progress in line with the GISC rulebook. Where appropriate, the applicant will receive a follow-up visit to validate minimum compliance levels.If required, Network Extra will offer broker members outsourced assistance at competitive rates on compliance and training to assist with their application for authorisation. IT System: A key benefit of Network Extra is that no systems change is required, no 'kit' or training needed. The only requirement is for the member to use email and internetInsurer Partners: Building on the already wide-ranging insurer partners of sister company Camberford Law plc, Network Extra will have a comprehensive insurer panel from the company and Lloyd's markets Service level benefits: Quotations - two working daysSurvey - 21 daysRecommendations/risk management - 14 daysDocumentation production after risk completion - 30 days.If delay should occur beyond these standards, the member will immediately be kept in the picture.Cost of joining: Registration fee - £1,000 with on-going membership fee of £350 per quarter paid in arrearsOther costs of membership: NoneMinimum period of membership:Two yearsContractual restrictions: Subject to terms of business agreementOther benefits: Network Extra is a broker's complete one-stop-shop, giving access to a truly comprehensive range of markets through one central source which provides quotations, places business, administers mid-term alterations and deals with renewal terms. Broker's time is thus released to concentrate on productive activities, such as new business acquisition and client relationships, while delivering immediate savings in the costs of running the business. Other main benefits are:
COBRAName of network: COBRA (Commercial Broking Alliance)Contact name: Paul Smith, national broker development managerContact address: Quadrant House, Croydon Road, Caterham, Surrey, CR3 6TRContact number: Tel: 01883 333 393Mob: 07850 399 993Email: paulsmith@cobranetwork.co.uk Website: www.cobranetwork.co.uk Number of members: 26 on 25 November 2003. Target of 100 members by end of 2004Qualification for membership Commercial brokers with premium income between £1m and £10mCompliance help package: COBRA delivers assistance with FSA Compliance through:u Analysis of and assistance with senior management arrangements, systems and controls including a full risk assessment of the businessu Management tools including compliance, training and procedures manuals, along with record keeping and reporting systemsu Recruitment and induction procedures, job specifications and benchmarkingu Terms and conditions policy, training needs analysis and full appraisal systems, CPD-based technical, soft skills and management training and monitoring systemsu Complaints handling proceduresu Templates: terms of business, specimen letters, and supporting documentation.u Regular and comprehensive auditsu Advice on financial status as it affects the regulatory authority's prudential requirementsu Management and monitoring systems for appointed representatives and introducers.IT System: Ideally, using the insur-E.tam (The Agency Manager) back-office system, although this is not mandatory. However, members must be able to use Microsoft Word and Excel applications in order to use the extensive library of document templates.Insurer Partners: Allianz Cornhill, AXA, NIG, Norwich Union, Zurich Personal; plus scheme/niche insurers Carraig and Mini BusService level benefits: COBRA takes full advantage of the benefits of consolidation, while retaining the customised service approach traditionally associated with the specialist and local broker.COBRA members benefit from increased buying power, superior margins, a wider range of services, including enhanced marketing and training support, together with assistance and guidance with FSA Compliance.COBRA has negotiated member benefits with the UK's leading insurance companies. These insurers profit from a greater volume of new and renewal business and with improved efficiencies, from single point negotiations to overall compliance.COBRA creates greater efficiency and market presence for its members and improves the ability for each individual firm to trade in its own right and continue to create and protect value.Cost of joining: None - membership of COBRA is freeOther costs of membership:NoneMinimum period of membership: NoneContractual restrictions: None; however members are obliged to place 50% of all qualifying classes of business through COBRA's insurer panelOther benefits: Free membership. Business independence is guaranteed. No annual charges, and COBRA does not ask for a percentage of the member's GWP. Club status with COBRA's insurer panel. No requirement to change IT platforms. Free assistance with compliance and training. Access to a dedicated in-house underwriting team. Improved commissions. Exclusive access to specialist schemes and niche insurers. No contractual 'tie-ins' and brokers can remain as members as long as they want.Mission statement: The Commercial Broking Alliance, (COBRA) delivers a true partnership that adds real value for its members with each member retaining its full business independence.COBRA recognises that all stakeholders - broker, insurer and client - must benefit.By developing a true partnership of independent insurance brokers where profitability is key and remuneration is performance-related, COBRA offers a simple but practical and effective value proposition for all its stakeholders. COBRA provides a large business volume to its insurer panel to secure improved rates and is able to compete effectively with other large national brokers.
CountrywideName of network: CountrywideContact name: Caroline HardimanContact number: 01905 754 455Contact address: Misys Insurance Management Ltd, Buckholt Drive, Warndon, Worcester, WR4 9SRWEBSITE: www.misysim.co.uk Number of members: 900+Qualification for membership: Brokers are subject to a vetting process. Minimum requirements include a premium income of £750,000, a Misys IT system, financial stability and processes in place to prepare for regulationCompliance help package: Misys Insurance Management provides access to Misys's online regulatory support package, Equip. Now used by over 320 firms and 2,200 broking staff the number which is rapidly increasing), it is one of the most comprehensive and affordable support packages on the market, starting from only £49 per month.Equip offers an online training and competence programme, in partnership with leading insurance trainers at London Metropolitan University. It also includes a business healthcheck to assess how the firm shapes up against likely regulatory requirements, and a regulatory guide. This incorporates easily adapted templates for key documents such as business agreements and complaints.IT System: Countrywide operates from a single Misys IT platform - improving trading efficiency. The system is renowned for EDI capability and new products such as OASys Commercial will be of further advantage to members and insurer partners.Insurer Partners: Brokers can expect advantaged products, rates and levels of service with Countrywide's six leading UK strategic partner insurers - Allianz, AXA, Fortis, Groupama, R&SA and Zurich. Churchill is the latest addition to the Countrywide portfolio, which includes MMA and Congregational & General.Countrywide provides a total 70 advantaged products, along with additional business services and facilities from partners such as Peninsula, SBJ and THB.Service level benefits: Service level agreements are in place with many of Countrywide's insurer partners (some with financial sanctions). Support of members is not mandated which means members have a greater choice and degree of independence. Cost of joining: £800 annual fee (discounts apply at renewal stage). Considerably lower than some networks which charge a substantial amount based on a percentage of GWP controlled. Minimum period of membership: 12 months. CONTRACTUAL RESTRICTIONS: As a Countrywide member, full independence is retained and therefore there are no contractual restrictions in terms of volume of business placed through the network. However, certain minimum criteria must be met before membership can be granted. Brokers must:
Coversure Name of network: Coversure Insurance ServicesContact name: Nick HollandsContact address: Coversure House, Vantage Park, Washingley Road, Huntingdon, PE29 6SR Contact number: 01480 483 505Website: www.coversure.co.uk Number of members: 76Qualification for membership: For new start-ups at least three years general insurance broking experience. For existing brokerages we require all outstanding accounts to be settled in full before commencing trading under the Coversure banner. References will be required from current major agencies.Compliance help package: Coversure provide all of the necessary back office procedures to ensure compliance including letters, documentation, system scripting, online complaints handling, training and record keepingIT System: Use of the low cost Coversure system is compulsory Insurer Partners: Agencies held with all leading insurers Service level benefits: Service level agreements are in force with major insurer partnersCost of joining: £10,000 +VATOther costs of membership: 10% of commissions and fees receivedMinimum period of membership: five yearsContractual restrictions: There are a limited number of restrictions in the area of advertising and marketing that are designed to benefit franchise holders in a number of waysOther benefits: Coversure is in a position to provide all of the necessary services that will enable an experienced insurance professional to establish his own broking business. There are a number of difficulties that need to be overcome in order to convert an existing business to a Coversure franchise, but these can be overcome by brokers who have a history of running their business in the correct way. Coversure was established in 1986 and has already gained considerable experience in this field.
Eastern Alliance LtdName of network: Eastern Alliance LtdContact name: Grant Taylor Contact address: 52, Broadland Drive, Thorpe End Norwich NR13 5BTContact number: Tel. 01603 433 700 Fax 01603 434 370 E-Mail grant.taylor@ealtd.co.uk Website: www.ealtd.co.uk Number of members: The membership has remained constant at seven since its inception.NUMBER OF PEoPLE EMPLOYED: We believe that part of the strength of the Eastern Alliance proposition has been the involvement by the members through the use of their facilities and services. With over 350 staff directly employed by the current members, only the chief executive needs to be directly contracted.network OWNER: Eastern Alliance Ltd is a wholly owned company of the seven prime members The membership, currently controls some £90m of premium spend.TIME IN OPERATION: Six years. The EAL was first brought into being in 1998 by a group of independently minded brokerage based in the east and southeastern counties.Qualification for membership: Prime membership is targeted at commercially based independent insurance brokers whose total GWP is greater than £7.5m and has been in the past, by invitation only. However, in terms of prime membership, we will be happy to discuss the EAL proposition with independently like-minded interested parties.Whilst members have traditionally been located in the East and South East of England this would not be a requirement for new primary members.We have also developed an Associate Membership proposition This level of membership would typically suit the smaller commercially biased brokers planning upon becoming directly FSA authorised, who has an income in excess of £1m. and for whom retaining their independence is important. Similarly, preserving access to markets at partnership level and being part of a commercially recognised and well-established network will also be of prime importance.Compliance help package: Access to all the best practice, compliance, training, development and HR solutions developed by the members, together with the ability to make use of compliance consultants and training workshops at discounted ratesIT System: Part of the Eastern Alliance raison d'être has always been to maintain and to preserve the individual members independent approach to their businesses. The diversity of the members businesses makes a "one-size fits all" approach inappropriate. Inevitably some systems are common between members but it is not a requirement for membership.Insurer Partners: Allianz Cornhill, AXA, NUI, R&SA, Allianz Cornhill Engineering, R&SA Marine Cargo and Transit, Zurich, Ecclesiastical, and Temple Legal ProtectionIn addition potential members will be able to access the wide range of schemes and facilities of the individual members at advantageous terms. This allows members to utilise the considerable expertise and access the very diverse areas of the market that may traditionally be unavailable.Service level benefits: Service level agreements are in place with the major markets regarding document production and claims handling.Cost of joining: Primary membership would be through the purchase of shares in Eastern Alliance Ltd. and would be subject to individual negotiationAssociate membership would be based on a 12-month agreement and funded through a modest annual fee. Other non-recurring charges may be incurred as part of the initial membership process.Other costs of membership: Minimum period of membership: 12 months via written agreement.There are no other costs other than those already outlined.Contractual restrictions: Contractual restrictions are kept to an absolute minimum thus preserving the independence of the members and their right to trade for the benefit of their clients. Members are expected to support the partnerships schemes and facilities where these are in place.Other benefits: Maintains access to insurance markets at partner level. Single point of access to insurance markets including Lloyd's placing facilities. Agreed Eastern Alliance policy wordings. Access to Eastern Alliance approved suppliers of:
The Folgate Broker AllianceName of network: Folgate Broker AllianceContact name: Simon TrottContact address: Folgate House, 26-28 Pembroke Road, Sevenoaks, Kent, TN13 1XRContact number: 0870 908 3200Website: www.folgate.co.uk Proposition for brokers controlling in excess of £1m income, involving the acquisition by Folgate of a minority stake in the region of 25% of a company's shares, and put and call options enabling the acquisition of outstanding shares within an agreed time scale (generally between three and five years). The proposition also includes a capital injection from Folgate share acquisition and that all classes of business will continue to be traded.Brokers benefit from:
Compliance support (optional)
Annual membership.
Total Broker Solutions LtdName of network: Total Broker Solutions LtdContact name: Mike WilliamsContact address: Suite 19, Vision Centre, Eastern Way, Bury St Edmunds, Suffolk IP32 7ABContact number: 08707 504 503Website: www.tbsnetuk.comNumber of members: ConfidentialNUMBER OF NETWORK EMPLOYEES: Initial establishment 20network OWNER: Major shareholders are Robert Beckett and Mike WilliamsLENGTH OF TIME operating: To commence trading spring 2004Qualification for membership Minimum annual GWP around £2m and predominantly commercial lines. No restrictions on location. No exclusive territories. Great Britain excluding Northern IrelandCompliance help package: Initial compliance review by RW Compliance Ltd, covering 22 separate areas. Cost, about £750 plus VAT - larger companies by agreement. Continuing support via RW Compliance Ltd on a bespoke basis, including compliance officer training, manuals, assistance with FSA application, compliance health checks, telephone and web-based support, consultancy.IT System: State-of-the-art front/back office system, offered on a 'per user, per month' basis without capital cost or initial licence fee. Adoption by individual members as existing system commitments end.Insurer Partners: Panel of leading insurers, Lloyd's and London/specialist markets.Service level benefits: High level partnership benefits with insurers to deliver best of breed terms, access, support and service standards.Cost of joining: Nominal initial application fee.Other costs of membership: Agreed commission share to network.Minimum period of membership: Three years with break clause in the event of non-performance.Contractual restrictions: All relevant business to be placed by via Network facilities.Support in: Marketing/sales, business expansion, acquisition, sale and/or succession planning, human resources, claims management, premium utility.Mission statement: TBS is the network built by brokers for brokers, working in partnership to increase market access, promote profitability, facilitate FSA compliance, solve IT problems, reduce costs, develop new clients, increase shareholder value and improve exit strategies.
WestinsureName of network: WestinsureContact name: Bob ParkinsContact address: 164 Armada Way Plymouth Pl1 1LB Contact number: 01752 225878 Website: www.westinsure.com Number of members: 13 officesHow many people does the network employ? 8Who owns the network? Founding Broker BusinessesHow long has the network been operating? Three yearsQualification for membership West Country location, ambitious businesses keen to grow. Size - flexible, but must have a commercial bias. Will accept 50/50 split Compliance help package: Own compliance officer, we give guidance and help to facilitate compliance. This also involves FS compliance for composite brokers and ongoing monitoring after FSA authorisationIT System: Sirius but it is not mandatoryInsurer Partners: All the main insurers with special facilities and a good London market exposure Service level benefits: Partnership status with a main insurers and extensive agency facilities with others linked to exclusive West Country distribution and improved service standardsCost of joining: No joining feeOther costs of membership: Flexible arrangements based on a percentage of annual commission incomeMinimum period of membership: Five years but flexible termination options are availableContractual restrictions: Must use the Westinsure brand - signs, telephone, stationery etc. Other benefits: Westinsure is focused on building a successful network and majors on marketing, sales and insurer relations. Our centralised support services allows members to concentrate on their main business focus - increased profits. MISSION STATEMENT: Westinsure is dedicated to the structured retention and growth of community insurance brokers in the West Country. The Westinsure brand is synonymous with professional service delivered locally by experienced people. We aim to be the perfect West Country distribution channel for our Insurers partners. We are totally driven to making a difference to distribution including re-engineering processes.
