“Brokers want high-speed, high quality service – and we outperform the market

been actively developing our capability to provide new business and mid term adjustment capabilities through electronic platforms, improving the way in which our brokers can transact commercial lines business with us. The momentum will continue in 2010 with the ability to transact on a full cycle basis by the end of the year.

We are also holding broker forums around the UK to get feedback and build relationships with brokers who have a limited experience of Fortis. These are going really well.

AN: One of your claimed strengths is what you call low-cost leadership. But how far can that go? There has to come a point surely when cutting costs impacts on performance?

MC: We have been identifying and delivering efficiency gains across the Fortis UK businesses by leveraging the combined capabilities of the businesses and improving operational efficiency (e.g. through removing process deficiencies in our claims management and decreasing unnecessary operational costs such as postage by increasing e-mail communications). We have long held the position as the most efficient motor claims handler and in 2008 achieved the most efficient household claims handler accolade. As a result we are able to provide a more efficient and faster service to our customers. This is a key area of differentiation for Fortis.

AN: You want to increase your distribution outlets, and indeed the ratio of brokers to the other distribution channels has fallen. The broking market has itself consolidated in recent years, so what are your plans for the broking channel for the future?

MC: Whilst we have been growing our multi-channel distribution approach, we have at the same time grown the depth and breadth of our broker channel, adding approximately 100 new

brokers to our book every year and increasing the number of brokers that sell more of our products. In fact, 85% of our brokers now sell four or more of our products. Brokers are still very much our heartland and we will continue to develop our product and service proposition to meet their needs. We will not have a broker club! We will provide the same level of service for all our brokers but differentiate in the depth and breadth of the relationship.

Commercial lines

AN: Commercial lines is to be an area for future growth. To what extent are you broadening your underwriting and commercial e-trading activities?

MC: Aligned with our strategy to grow in the commercial lines market, we have been extending our product range (recent examples already provided include Fleet, Care Homes, and Leisure) as well as developing our rating

sophistication and widening our footprint to move into other segments.

Our focus is on developing specialisms so that brokers can be clear on the type of business we are looking to cover. Key to our growth in the commercial lines market is the development of our e-trading capabilities, where we have made

significant progress for the majority of our commercial products. We have been working with several software houses to transact

commercial on an electronic basis in terms of new business and MTA

functionality and with full cycle capabilities expected to be in place by the end of the year.

APRIL 2010 insurancepeople 11

AN: If you are to compete in the crowded SME market, how will you invade that jostling market place?

MC: We already have an

advantage. The development of our commercial proposition responds to broker feedback, where they have requested that we replicate our personal lines service in the commercial market, building on our existing strong relationships. In addition, the significant strides we are making in terms of e-trading will put us in a leading position against our competitors.

”

AN: So what are your strategic priorities for the future?

MC: We aim to become a leading UK insurer accessing customers through a range of distribution routes. Brokers can expect us to continue to do what we say we’ll do. That means extending our product range and maintaining our high service, low cost ethos. Our big push will be in the commercial market, whilst at the same time extending our reach in the household market. We will also be focused on returning the motor book to profitability through our continued pricing discipline. Also we will

continue to develop our technical discipline through the

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