Emerging risks. Rising premiums. Reducing insurer capacity. Limited Business Interruption (BI) contract terms due to Coronavirus.
Many UK companies are facing an altogether more challenging insurance marketplace as they prepare for their next renewal.
Furthermore, the UK broking market remains in a constant state of change and evolution.
Independent insurance brokers continue to be targets for acquisition by Private Equity interests and large brokers.
Year on year, continued consolidation has led to a reduction in the number of specialist brokers in the market, leading to established brokers becoming more focused on internal reorganisation as they seek to harvest cost reduction synergies which often result in less people to service clients.
The impact for clients is a more disrupted broker marketplace resulting in forced changes to service relationships as account managers are asked to take on yet more clients.
As a boutique specialist insurance broker, Broadway was founded with a clear vision: ‘make a difference’. We spend each and every day creating and delivering bespoke insurance and risk management solutions for clients that have specialist commercial requirements.
For each client, we set out to identify, negotiate, and deliver cost effective insurance solutions.
Broker Selection – The Key Requirements
In the build up to pressing 2020 and 2021 renewals, Broadway is committed to spending time with companies to help them to address the following vital issues:
- To challenge whether existing arrangements are optimal and aligned to the key identifiable risks in their business.
- To highlight and advise on new and emerging risks faced by a particular industry or sector.
- To review existing client policy wordings to ensure that they are likely to respond reliably if called upon. This is particularly relevant given the poor response rates of Business Interruption policies in the aftermath of Covid-19.
Embarking on a process to challenge your existing insurance arrangements is far simpler than most company executives believe. The key is identifying the right specialist firm to conduct the review.
Here are some of the most important requirements that need to be met when selecting a prospective broker.
Regulatory credentials and professional standards – what to look out for?
The Financial Services Register is a public record that shows details of firms, individuals and other bodies that are, or have been, regulated by the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA). The FCA seeks to ensure that the provision of insurance should be honest, fair, and effective so that clients receive a fair deal.
Accordingly, we advise you to access the Financial Services Register to check the credentials of your proposed broking partner.
The future of insurance broking lies with professionals developing and maintaining state of the art expertise and trusted client adviser relationships.
The Chartered Insurance Institute is the key professional body for the insurance sector – membership denotes that an insurance broker is committed to maintaining the highest professional standards. More information can be found here.
Informed risk management strategies lead to better insurance choices
As a business considering a move to a new broker, we strongly recommend that you first assess the risk management capabilities of the broker. Today, dynamic companies are seeking to appoint a trusted risk adviser with a service that goes far beyond the mere sourcing of insurance.
The starting point for any review of your insurance arrangements is to ask that the broker consider your risk profile.
When devising a risk management strategy for a prospective client, we begin by identifying the key existing and emerging risk exposures faced by that business which could lead to possible loss. Drawing on industry-specific insight, we examine the key risks associated with a particular industry or sector.
By categorising and understanding the exposures (financial, operational, infrastructure, people, IT and legal and regulatory matters), we use a scoring system for each risk based on its likelihood of occurrence and severity of impact on a client’s business.
This allows us to identify and separate key insurable exposures from those which are non-insurable and to deliver more informed insurance and risk management recommendations.
What information does a broker require to conduct a review of this type?
Good news! Assuming the broker has the necessary internal resources and know how, the following information is the only information that the broker will require, all of which should be easily accessible for the client.
- Latest register of insurances (or renewal report) and accompanying schedules
- Copies of any policy wordings in the client’s possession
- 3 to 5 years claims history
Industry knowledge, team credentials or geographic proximity – what’s most important?
Answer: all of the above. A leading broker will demonstrate an appropriate balance of all three.
Commercial insurance should be simple, straight forward, and reliable.
Credible brokers should demonstrate a clear plan to deliver a robust solution and an experience which minimises effort on the part of the client. To succeed a broker must demonstrate strong team credentials, relevant industry knowledge and local proximity.
It is also important to recognise the need to Treat Clients Fairly and to deliver the best possible outcome.
In addition, a corporate client should ensure the following key service deliverables:
- Broker commission earning transparency
- Seamless access across all channels (online, mobile, in person)
- Information available real-time, fast, and frictionless
- Client empowerment relationships
Our people are handpicked for their expertise and ability to deliver comprehensive solutions to clients. We help business and individuals make more informed insurance and risk management choices that unlock the optimum value from their insurances.
If you would like to find out more about how to conduct a straightforward review of your insurance and risk management needs, contact Broadway and a member of the team will be happy to focus our insights on your needs.