Select few grab growth
A new study by industry analysts Plimsoll Publishing has identified an emerging set of players grabbing growth in the insurance broking market.
The report reveals a group of 552 companies emerged last year increasing sales at an average growth of 22.8 per cent growth, twice the average of the rest, despite the market’s sporadic growth over the last two years.
Of the 2000 companies analysed in the research, some 535 were found to
be suffering the consequences of these high growth companies.
David Pattison, senior analyst on the project, says: “This is absolute evidence of how most of the growth in the market is going to a select group of companies. For me, it’s evidence that the market is changing as the revenue and growth streams of even five years ago are not same as for 2006. These 552 winning companies are telling us all something about the future direction of the market.”
The study further highlights strong evidence that this is not simply a case of the larger companies forcing the smaller companies out of the market. Of the smaller companies with sales of less than £3 million, average growth was 2.8 per cent compared to the industry overall average 4.4 per cent, 57 per cent delivered an increase in sales and 276 companies increased sales by an average of 30 per cent.
“There does seem to be a buoyant market among the smaller companies but the competition appears more focused,” David continues. “Companies tend to be less concerned with the overall market and more concerned
with their immediate competitors.”
However, the analysis contains a note of caution for the smaller companies. Of those who suffered a decline in sales, the average decline was –13.9 per cent, suggesting that if sales do decline at a smaller company, the effect can be severe. To find out more, visit www.plimsoll.co.uk.
90% of brokers back Hiscox
In May and December 2005, Hiscox conducted a survey among brokers to gauge the effectiveness of its service and standing within the marketplace.
Early results from the report reveals a bright outlook overall, along with specific areas where Hiscox can offer more.
In general, feedback about Hiscox from brokers was extremely positive, with over 90 per cent of brokers feeling positive about the brand.
Brokers said they felt strongly that Hiscox has specialist knowledge and experience in the market and that they could recommend a Hiscox policy to their clients with confidence.
Director of group claims Jeremy Pinchin says: “I am delighted we continue to receive outstanding responses on our household claims. While our commercial claims service remains strong, we must work to drive our rating even higher. Claims service matters whether commercial or property risks.”
All brokers were in stronger agreement that Hiscox provides them with the tools to enhance their business and enables them to deliver a good service to their own clients.
Building better ties to boost business
Brokers in the Bristol area have been flocking to the new Hiscox satellite office since its opening at the start of the year, says branch manager Lee Hudson.
Lee, who previously worked in the Maidenhead office, heads up a team of five, which looks after Professions, Specialty Commercial and Art and Private Client business. “We’re working hard to establish our presence in the local market and convey to brokers what we’re doing in Bristol and why we are here,” says Lee.
“So far we’ve had encouraging feedback, and the general consensus is that brokers are pleased to have a regular Hiscox contact nearby to support them.
“Our focus right now is to continue making ourselves known, and in the summer we’ll be hosting an official welcome party. It’s important that brokers know we’re not here simply to take up more office space, but to add value by being closer to their business and seeing them regularly.”