A broker growth case study

A few years ago our underwriting team in Birmingham received an urgent enquiry for a motor trade business that had just been established by the owner. Whilst new ventures are not usually target business for us we were happy to consider the risk for a supportive broker with whom we had already developed a healthy business relationship across a range of products.

 In this scenario the business was principally a new MOT station carrying out service and repair work on vehicles and also the sale and fitting of a small percentage of new tyres. It was based in a local area that the team were familiar with, and the broker was keen to assist a new client by providing risk expertise and insurance cover with an insurer that has a strong reputation in the motor trade market.

 In supporting the broker to place cover, whilst other insurers had automatically declined to quote because of the uncertainty of a new risk, we were able to demonstrate that we always consider the risk quality and performance of the broker business with us in making our decisions. As a result of this, we have been able to further develop our relationship with the broker and continue to meet regularly where we discuss any changes in appetite, opportunities or challenges, as well as updating our joint business plan.

We’re pleased to report that the policy renewed in subsequent years, and the business had grown in size, built up a no claims bonus, and established itself as a well-managed local business.

 At the last renewal the policyholder decided to seek the assistance of another broker knowing that the business had become more attractive to insurers and a lower premium may be available. Unsurprisingly another insurer decided to offer a lower premium at this renewal, regrettably this was despite being unable to offer a quotation when the business had just started and was in need of support to establish itself, which left our broker in need of urgent help in order to retain the client.

 We spent time discussing the quality features of the risk with the Account Executive to conduct a detailed review and identify potential ways of improving our terms to help support them. A number of solutions were presented including a lower premium spend overall. The Account Executive was able to respond to their client to compete with the alternative terms and also reiterate the loyalty shown when the business was just starting out. As a consequence the policy renewed for a fourth year.

Speak to your local underwriting team to find out how we can help you to grow your business too.