Bright prospects

As the new marketing campaign shows, Hiscox will consider any proposal for commercial schemes. John Watson talks to Martin Hill about this flexible approach.

Hiscox has an appetite to grow its schemes business and Martin Hill is the man who is helping to feed this hunger. Commercial schemes fit well with the Hiscox way of working. Martin says: "Being a specialist is synonymous with the Hiscox brand and our purpose is to target insurance to a specific customer base. When we enter each new area, we aim to put the Hiscox touch on it."

Martin is a Senior Development Underwriter with a special responsibility for commercial schemes. He is based in Hiscox's Birmingham office, but helps brokers across the UK to create schemes.

Why should brokers bring their ideas and their most promising proposals to Hiscox? "Small is beautiful for us," he says. "An opportunity to grow the business by £100,000 in new premiums means more to us than it would to a bigger insurer. We put a lot of tender loving care into each scheme, working with the broker to make it the best it can be. Our largest scheme is currently at £4 million plus Gross Written Premium, with close to 10,000 customers, and we anticipate significantly larger schemes in the future."

Martin says Hiscox will consider any scheme with the potential to produce £50,000 or more of premiums in the first year. Another attraction for brokers is the control and influence that they can have over the way their scheme is structured. He explains: "The broker will say, 'This is my wish list for a product in this sector' and we work as closely as we can with them to deliver it. A lot of our schemes contain little elements of intellectual property from the broker."

This flexibility extends to the way a commercial scheme is managed. Some brokers want a binding authority, allowing them to handle all aspects of a scheme themselves. Others simply want pre-priced proposal forms, and are happy for Hiscox to deal with both customer and paperwork.

The broker edge

In the schemes market, great ideas can sometimes be strangled by red tape. A broker may have a visionary idea in their head, but if it takes 12 months for an insurer to agree policy terms and issue underwriting guides, the opportunity may pass.

Martin is convinced that the Hiscox's speedy response can give brokers the edge. A dedicated Schemes and Affiliate Solutions team – nicknamed the SAS – is based in Colchester. Martin says: "Right from the moment we shake hands with the broker on the concept, these guys move into action and produce policy documentation – frighteningly quickly. Within two to three months of agreeing the deal, a broker could be out there knocking on doors with a complete package to offer. Our record from initial idea to launch was just five days."

Martin joined Hiscox eight years ago and is a season ticket holder at West Bromwich Albion. "There is a heightened level of passion and commitment in being a West Brom fan and in some ways that transcends into the work life. I have a passion and a drive to get a scheme."

When he is not cheering on the Baggies, Martin might be at his caravan in rural Gloucestershire with his two young sons or indulging his fascination for military history at a Second World War battlefield.

A broad mind

It pays to have a broad mind when involved in commercial schemes. In the past few years, Hiscox has set up schemes for risks as diverse as GP surgeries, angling clubs, balloon modellers and pest controllers. While Martin is open to any new idea, he particularly wants to hear from brokers with scheme proposals to target the professions, as he puts it, "the people who wear a shirt and tie to work".

He says: "We can build in professional indemnity cover to a commercial scheme, which can give a broker a product with an edge."

Hiscox can help with marketing advice and support for a new scheme, but the magic ingredient – the X-factor – has to be the broker. Martin says: "We can come up with the best product, but ultimately someone has to go out and sell it. The schemes that have worked best for us are those where the broker is committed, is close to their customers and has a strong brand."

The Clarke Roxburgh scheme

One of the most successful schemes underwritten by Hiscox is aimed at electrical contractors. Launched three years ago, it covers risks including liability and professional indemnity.

The broker behind the scheme is Clarke Roxburgh. Director Andy Tedstone says: "We approached Hiscox to tap into its expertise in PI, but realised it could underwrite the whole scheme. It has worked well because both parties have been determined to create a market-leading product.

"We've got a fantastic relationship. Unlike some insurers, Hiscox doesn't leave us to get on with it and just come in for an annual review. We've innovated together and constantly developed the scheme."

Martin Hill says: "Clarke Roxburgh made the leap of faith with us. The scheme is now recognised as a serious player in the market."

Andy adds: "Hiscox is at the top of our shopping list for future projects. They have an appetite for risk and love the weird and wonderful."