It’s a natural next step for us, says new boss Jonathan Davey as he plans new year launch
Technology provider SSP is launching a managing general agency (MGA), Keychoice Underwriting, taking advantage of its network’s £2bn commercial lines business.
Jonathan Davey will head the MGA, which will offer exclusive SME products to the 900-plus members of Keychoice Network.
Davey, founder of £100m gross written premium (GWP) Primary Broker Services, will work on finalising the capacity providers before a planned launch in the new year.
Davey, who joined SSP in August last year, said: “We have the huge advantage of being able to build on the firm foundations of the existing Keychoice Network.
“Keychoice has been working closely with its members and insurer partners since 1994 to create long-term, mutually beneficial propositions and now controls in excess of £3bn GWP.
“Underwriting commercial lines business is a natural next step and, as we will have no legacies, we will be able to ensure that we deliver what our members want: well-priced and designed insurance products, combined with access to experienced underwriters and good service.”
The MGA plans to offer commercial combined, package, property owners and motor trade and fleet. Other lines will depend on broker demand.
Keychoice Underwriting will provide pricing, underwriting, policy servicing and claims handling on behalf of insurers.
Davey will focus the MGA around underwriting profitable business rather than looking to gain volume.
SSP said that Keychoice Underwriting will be competitive in the commissions it takes from insurers and will align its revenue to underwriting profits.
Chief executive Laurence Walker said: “Establishing an underwriting agency emphasises our plans to develop further within the industry, beyond the provision of technology solutions.”
Davey said the business model is a “sound business proposition” that will allow SSP to create a long-term business, offering brokers a strong partner and insurers a guaranteed return on investment.
SSP said the venture should be authorised by the FSA later this year.
Online analysis: Davey is doing what he knows best