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1. Interview With 1 Answer Network
Last October the broker network scene saw an element of ‘handbags at dawn’ over the arrival of some new entrants, but Hailsham-based 1Answer Network remained absent from this infighting. Indeed managing director Paul Muir welcomed these new arrivals in these very pages.
That stance was first on the agenda when I met business development director Trevor Cutts a few months later and asked him about this apparent confidence towards potential competitors. “We have over 40 members, which may sound comparatively small when compared to other networks, but we are selective and we also have a unique offering in the provision of CDL software alongside our many other services that are in place and working to help our members grow and compete on a level playing field with larger companies.
“Brokers who may not necessarily be able to afford such a proven system as CDL, or its upgrades in their own right receive genuine benefit from the collective clout – which is exactly what networks should be all about.”
Is it compulsory for members to have the CDL system? “No, it’s not, although naturally we encourage them to plan their software for future years very carefully, and will help them when it becomes time to change. Brokers can receive all the other benefits if they wish, without having to adopt the CDL system straight away, or indeed at all.”
There’s also a claims solution package. While Mr Cutts doesn’t claim that 1Answer are the only network to provide such a package, he contends that they were pioneers in this direction. That’s not really any surprise given his background. Originally a motor underwriter, he moved across to claims solutions and was in fact part of the team that set up the very first motor insurer courtesy car facility back in the early 1990s. “When I joined the 1 Answer Network team I was very encouraged by the fantastic claims solution that is one of the many great services offered to our membership. I feel with my knowledge of this area over many years we have most importantly achieved very high levels of service for our members and their clients whilst still being able to offer a full ‘one stop service’ for all of their clients claims needs, with many unique tweaks within the way it operates for them with branded literature and updates onto their software systems and full access to progress throughout the cycle of a claim this is very much a transparent and respected service.”
Mr Cutts goes on to explain why 1 Answer Network does not fear competition, “We are seeing signs of companies now looking a little more at the personal lines side of networks, which we believe has been overlooked for far too long and even if one or two of the newer entrants are very much copies of parts of our services at least the high street brokers are now getting help akin to that offered to commercial only brokers for many years, and ultimately any form of copying is flattering in that we must be doing things that are required and doing them well. We have not seen anyone offering the full range we offer or indeed the ability to ‘pick and mix’ as we do but the market is showing signs of a renaissance for the personal lines / high street brokers and proves to us something we have always believed – good brokers do have a future – and sure they will need to adapt and modernise but we offer a range of consultancy and product packages to enable our members to do far more than just survive.”
So what does the future hold for the personal lines market? “We believe, and have always championed the vision, that the market will settle down, rates will harden and signs are encouraging that they are, direct writers & aggregators will settle down to a market share but always there was and is room for the high street broker, albeit in a more modernised way, to have market share that statistically has a strong renewal retention and very often stronger loss ratios due to the personal knowledge and involvement in many cases with its clients. In other words there is room for us all and what our members offer is something different to direct writers & aggregators in many instances and clients currently have a choice which we want to see remain and in many cases grow once again.”
1 Answer Network offer services including add on products, software solutions, I.T. support, consultancy and are able to adjust an offering to suit the applicant – 1 Answer indeed for brokers and a refreshingly buoyant view on an area that has been often bypassed or overlooked – long live the high street broker.
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2. Broker group rallies insurers to take on the aggregators
Insurance Times, Issue 27-08-2009
By Danny Walkinshaw
1 Answer Network says brokers are struggling to keep up with prices on personal lines
Personal lines broker network 1 Answer Network has launched a “crusade” against aggregator pricing and wants more insurers to jump on board.
The network, launched four years ago and now with more than 40 members with a combined gross written premium (GWP) nearing £100m, believes brokers are struggling to keep up with prices from aggregators and direct players.
Managing director Paul Muir said insurers should join forces with the network to offer competitive rates on personal lines.
“The hardest problem is competing against the rates with the aggregators. We are in talks with insurers at the moment and we saying, ‘Here is a great opportunity for you to compete’. I see it almost as a crusade.”
He said some insurers had already come on board “and our members are starting to get some benefits”.
The network currently has deals with six major carriers, including RSA, Fortis, NIG and KGM, and Muir revealed he was in discussions with MMA Insurance. He was also hopeful of talks with Aviva as he sought to increase the network’s panel to eight.
“We have a platform to help insurers put their rates out with the direct players. The ones that are actively trying to grow their personal lines book of business like it.
“We want to make sure we have a good number of insurers and we want to get to eight insurers for various products.”
Muir said that if the aggregator price war continued, insurers would have no choice but to consider their options.
“Insurers are all going to review what they are doing with aggregators and may assess what they do with that business.”
He also opened the door for small commercial brokers to join the network, which he said typically attracted £2.5m GWP firms.
“There is so much competition in personal lines, so any broker that is new to it, we can help them. Everyone is welcome.”
http://www.insurancetimes.co.uk/story.asp?sectioncode=1&storycode=380048
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3. Network News - recent article in Brokers Monthly
It was back in 2006 that I first touched base with managing director Paul Muir and the personal lines 1 Answer Network formed “to revitalise the high street broking model by giving member brokers access to improved facilities, products and services, plus the best software solution in an affordable way”.
Two years on there are now around 40 members with the combined GWP now over £75m via 160,000 clients. Mr Muir believes in the high street broking sector and has worked in it for over 20 years. “There are a vast number of high street brokers running sound businesses that do not have the buying power to introduce the most efficient IT, premium finance, income from quality products services and add-ons or insurance 6 BROKERS’ MONTHLY Paul Brierley facilities. It is these brokers who have been most at risk of acquisition and 1 Answer Network was designed to offer them an alternative, whilst allowing them to remain fully independent.”
So what’s his view on, say, the Endsleigh high street office closures? “We do not see the Endsleigh closures as a problem or a market trend as we believe that there will always be a percentage of the insurance buying public looking for the ability - even if they never actually use it! - to speak to, and visit the office they purchase insurance from. Whilst we acknowledge the internet as the fastest growing medium attracting insurance sales, we look to help our members to offer some internet presence whilst remembering their core values of being a face behind the voice when offering quality service and product.”
And of networks themselves? Are new ones - such as the Broker Direct referred to in the previous paragraph - a threat? “We welcome the arrival of another network as it shows in many ways how we were ahead of the market some three years ago when we launched. We have gained much knowledge and experience during this period, and as we are more of a personal lines network (whilst still offering much in the way of commercial products and services) we still see ourselves as fairly unique against other alternatives. We hold some core values which include all of our members remaining fully independent and free to use any favoured or existing relationships. Our plans for the next two years include membership to exceed 100 and a £150m GWP or more.”
Call Trevor Cutts, Business Development Director on 07887 777207.
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4. Online Quoting announced by 1 Answer network
1 Answer Network has announced the imminent arrival of an online quotation facility that will work in conjunction with the centralised CDL system.
This is seen to be a significant step forward in our already extensive portfolio of products and will definitely give our members a distinctive advantage.
This is a service that is totally voluntary and our members that wish to offer their customers the ability to quote online for car, Home, Bike & Van will be able to do this at a fraction of the costs normally associated with such a service.
We have already had a fantastic response to this announcement and please keep looking in for further updates.
To discuss membership please call Trevor Cutts (Business Development Director) on 07887 777207
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5. DVLA Lookup now available for Executive Members
Would you like to be able to check your clients vehicle information direct with the DVLA?
With 1 Answer Network and CDL you can do just that and we would like to offer you the opportunity to have this facility on your branch.
Their are no setup costs, you only pay 11p per sucessful lookup (full or partial) and you can search for:
- Make
- Model
- Year of registration
- Engine size
- Value
- CO2 emissions
- ABI Code list 44
And this is all delivered in sub second time.
Getting this setup couldn't be simpler, so if you would like to know more information please contact us right away and we will be more than happy to answer your questions.
To discuss membership please call Trevor Cutts (Business Development Director) on 07887 777207
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6. Free Half and full day consultancy for our members
We know how tough the market is and how hard it is to find that deal that will give our members the edge.
Very often it just takes a fresh pair of eyes to look at the business to see the potential.
Paul Muir, the Network’s Managing Director has over 25 years of experience in the broker market and is available for a half or full day FREE consultancy.
We are not trying to tell our members how to run their businesses; our philosophy remains the same, full independence, and we just see this as a perfect opportunity to give impartial advice that would:
- Look at the business model
- Suggest new ideas
- Look at ways to increase revenue
- Help on renewal retention
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7. Going back to the Future - Paul Muir talks to Prefessional Broking
Professional Broking looks at the High Street Broker and how Insurers are starting to Pay attention to their merits; Paul Muir speaks about how there is a bright future for the High street, what with the personal level of service, the many support products and the help from a Network like 1 Answer Network.
Read the full article click here
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8. The Personal Touch - Paul Muir talks to Insurance Age
Having founded his own successful brokerage, Paul Muir talks from experience when he advocates the benefits of brokers belonging to his personal lines network. Louise Meeson meets the 1 Answer managing...
Paul Muir has experienced his fair share of trials, tribulations and triumphs during his time in the insurance market, making him better qualified than most to fly the flag for the independent intermediary. Having grappled with the challenge of starting his own brokerage from scratch, and surviving - and indeed thriving - in the wake of the direct writers and aggregators, Mr Muir, head of network and broking firm 1 Answer, is keen to highlight the benefits that local brokers offer at every opportunity he gets.
And he has plenty to shout about. Mr Muir established East Sussex-based broker, 1 Answer Insurance, which offers both personal and commercial insurance, a decade ago. Then about three and a half years ago he set up 1 Answer Network, which has gone from strength to strength.
Indeed, the personal lines network, which is approaching 50 members that control gross written premium of more than £85m, has reached an exciting stage in its development. When asked whether in order to grow the network further he would consider selling, entering into a working arrangement with a commercial network, or indeed buying another network himself, Mr Muir says he would "rule none of them in and rule none of them out" but adds that he is not pushing in any particular direction at the moment.
"What a year this could be," he adds. "Who knows what direction it will go in. Clearly, there's an attraction. If there was ever an approach it would have to go through the right channels. For us, it would have to offer something extra. Too often, you see companies being bought out in order to take one of the players out of the game but we offer something different and I believe we are valued.
"There are some good quality networks and over the next two or three years only the strong will survive. If you don't think outside the box, if you don't interact with your members enough then what's the point? I think, in the end, there will be four or five good quality networks, which all offer something a little bit different. There's no need to have 12 that all offer the same thing."
Ready for the challenge
Mr Muir admits that the network is entering a "different ball game". He continues: "The opportunities are greater. Sadly for many people, size is everything but we kept under the radar for the first couple of years because we didn't want people to compete with what we do. We are now quite comfortable and confident about what we deliver. The whole point with the investment we have made in our technology is that we are now ready for the next level."
However, Mr Muir is keen to point out that any potential development will not be to the detriment of its service levels, one of the elements he believes sets 1 Answer Network apart. He explains: "That was one of the raison d'etres when I was starting up - I thought 'what would make me want to sign a contract to join a network?'. I would want to remain independent but would want to have better relations with my insurers again. I wouldn't want to waste loads of time seeing numerous product providers or worrying about how old my file server was getting. I'd want someone to take those concerns away from me so I could concentrate on being a really successful broker and reminding the insurer constantly why they could give rates that allowed me to compete."
But it has not always been plain sailing for Mr Muir. He started out in the industry at a South east London-based broker at 18, quickly rising through the ranks to reach the position of company manager in just a few years, and helping grow the business from two to 10 branches. Unfortunately, After 15 years' service, relations turned sour when the owner backtracked on a promise to sell him the business. It was then that Mr Muir decided to branch out, remortgaging his house and setting up a branch near to where he lived in south-east London. Shortly afterwards, he decided to move the business to East Sussex for a completely fresh start.
Mr Muir says there was a two-year period when he couldn't afford to keep travelling back and forth between his home in London and work everyday. He says: "One evening, when I was staying upstairs at the office, it dawned on me that I either needed to kick myself up the rear, get myself going and make it a success or just shut the doors and stop doing it. That was the first day of the rest of the business' life. We never looked back.
"We got up fairly quickly to six, eight, 10 staff. Then the Financial Services Authority came in and I felt there were a lot of brokers out there that had very good intentions but got bogged down by things that distracted them from what they were good at - running their brokerage business."
Insider knowledge
Talking about the key to his success, Mr Muir says: "I have 25 years in the business now and that is something that helps when you are talking to other brokers. You are talking primarily as a broker and someone who shares their pain, aspirations and their desire to be successful. That's why I always try and champion the smaller guy because you can be successful but you have to make sure that people give you the opportunity and a level playing field.
"The industry is unrecognisable now to what it was. In the old days, I had to learn 10 to 15 underwriting guides and everything was manual. But I think that's a good education. The staff you employ nowadays just think you turn a computer on and that's it, but, learning your underwriting guides I think gives you a better knowledge of what's a good or bad risk and what an insurer would want. Educating staff on underwriting knowledge and getting the right fit, the right insurer for the right product, is really important.
"I remind my staff why an insurer pays a broker commission. The first reason is to attract policies but the other is that we are the eyes and ears of the insurer - we protect them from the risks they don't want and attract the risks they do want to write. Those are the basic principles everyone should understand when selling insurance."
Mr Muir has been vocal in his criticism of aggregators but he is keen to point out that he believes there is a place for them:
"Personally, I would say it depends how you use them. If you use them as a lead generator and still have dialogue with the customer I see nothing wrong with that at all. If there are no touch points with your customer then that's when the dangers can appear and that's where some of the insurers have had problems.
"In this industry, one of the biggest dangers and problems is that operators have been too slow to react and too comfortable with thinking that the way they have done things is the right way to do it. If they see something that works there tends to be a sheep mentality where they all follow what someone else has done because that worked for that individual business. But I think you do need to be innovative and think about what fits your particular business model."
And Mr Muir is clear about how his own brokerage's model works. 1 Answer Insurance sells both personal and commercial lines, in a 70/30 split in favour of personal. That may seem like an odd balance in a market where the majority of brokers favour a commercial-heavy book but Mr Muir explains that much of it is about offering a service to the client: "The market dictates you need to offer a full solution, that way there is no leakage. If you have one answer for them, they don't have to go down the road for the next product. You earn very little from travel insurance, for example, but if you don't offer it, someone else will and they will then try and sell the client their home and car insurance too."
He also has big plans for growing the network but admits some brokers remain cautious. "We are aiming for about 50 members," he adds. "We would have liked to have achieved that by year end but the reality of the market is that brokers are nervous about what they might consider to be taking a risk - taking a change in direction - whereas I actually think that when they join they are getting more of an infrastructure, more help, services and training. I don't see it as a risk, it's more like a friendly arm around their shoulder to help them with their business."
The network is rolling out a white-labelled internet solution during the first quarter, which has the ability to cater for about 250 members, which gives some indication about the long-term ambitions Mr Muir has for the network.
He says: "We are a personal lines network and there isn't another one in the market. We are now doing a lot more commercial and small to medium-sized enterprise (SME) business. When I'm doing consultancy for brokers I ask them whether they have any gaps in the market. They may be struggling to be competitive in personal lines, so I ask 'why aren't you looking after your commercial and SME business? Who do you play golf with?' Many of those people will have businesses. It's not just the commercial side of that business, you can go and see their staff, offer staff discount schemes on the personal lines products. It's about not putting all your eggs in one basket."
Mr Muir reveals that while he is actively growing the personal lines side of the network, he is focusing on growing the commercial side too. However, he claims that a number of insurers are anti-network. He says that much of his negotiations with potential insurer partners involve explaining to them that 1 Answer Network offers the whole package and is not about forcing them to pay 'massive over-riders'.
An optimist at heart, he is not phased by the recession. He says: "Through adversity you will find that the strongest businesses survive. For me personally, as a broker and as a network managing director, I can't see a better time to move your business on because so many people are behaving like ostriches and are just waiting for the market to get better. Do something about it yourself. Get yourself out there and look at what you can do to make a difference. Yes it's tough, but that's when the tougher people should fight harder. This climate should make people more determined. If you can get through, this you can get through anything."
He is equally optimistic about the future of the local broker. "In the past there may have been 6,000 to 8,000 local brokers - this may end up going down to 3,000 or 4,000 but there is still a need for good quality brokers." And with people like Mr Muir in the broker's corner, it's clear to see that there is plenty to be optimistic about
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9. Network News to Follow
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10. Network News to Follow
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