Seven brokers applied to join Total Broker Solutions, the fledgling network created by Beckett Group chairman Bob Beckett, after attending the first roadshow at Villa Park last Monday.
TBS chief executive Mike Williams said that 111 brokers signed up for the first roadshow and 90 turned up.
Williams said that TBS had agreed with AXA, Allianz Cornhill, Norwich Union, Royal & SunAlliance and Zurich that brokers placing business through TBS would receive a commission boost of 3%-3.5%. In return, brokers would forfeit 2.5% to TBS. Williams said that the system was already in operation with six pilot brokers with fee and commission income ranging from £435,000 to £2.4m. He said that these companies had an average commission of 13.5% across their books.
"There is no long-term tie-in. If you don't like the way the deal is working then you can just walk away," said Williams. He added that the insurers had promised that if brokers went into TBS and then came out they would be able to go back to the terms of their previous agencies.
TBS is looking to sign brokers who sell predominantly commercial lines with a premium income of more than £2m. Brokers would be able to continue direct relationships with insurers, but would have to funnel at least £2m of premium income through TBS.
RW Associates managing director Ian Ritchie explained that a condition of joining was a one-off regulation compliance healthcheck that costs £750 for firms with less than ten staff. A supplement of £15 per member of staff was payable for firms with more than ten staff. Ritchie explained that the fee covered advice and coaching required to become compliant.
For a £2m premium income broker, TBS receives £50,000 plus any fees relating to costs of using TBS extras such as a claims service and premium utility that were, according to Williams, due to be launched next spring.
He added that an IT system would be available should brokers want to take it up. It is understood that TBS is in talks with Sirius, SSP and one other supplier about developing a system for TBS members. Williams added that as well as earning an extra commission, brokers joining TBS would qualify for insurers' special relationship schemes.