10 PROFILE
Getting the formula right
BM: You’re a qualifi ed accountant - why did
you choose an insurance career?
PB: I liked insurance immediately. I found the
variety interesting and I knew I wanted to work
in this sector rather than accountancy. That
said, my training does help me spot trends
and fi gures, which is very useful, and through
analysis of fi gures you can also help see how to
develop a balanced book of business, which is
important for profi tability.
BM: Has LV= put rates up - is this is
necessary?
PB: It is happening, but is most noticeable in
car insurance. Here, we’ve imposed rises of
around 20 per cent. The market as a whole
is defi nitely hardening, but it is taking longer
elsewhere.
BM: LV= has not sought to buy brokers - do
you think this can cause problems and do
you think you may change this strategy?
PB: NIG owned some good brokers in Dial
Direct and Bennetts but one of the fi rst
things I did was to sell them - they are now
owned by the BGL Group. I don’t believe it
makes business sense for an insurer to own a
broker. I think brokers benefi t by being agile
and they tend to operate on fi ne margins - if
they are owned by an insurer, it tends to put
their expenses up. There is also the issue that
an insurer may put pressure on a broker to
give it business - and this can lead to a lack
of trust with other brokers. As a result of all
this, buying brokers is not something LV= is
interested in.
BM: Do you have plans to move into new
areas of broker business?
PB: LV= is a multi-channel business and we’re
Brokers’ Monthly spoke to Phil Bunker, managing bringing products that have been in the direct
director of the newly established LV= Broker
side to brokers, we’re launching a Britannia
Rescue product. We are also due to provide
division, about his role in a business that has fast
legal expenses, pet and travel for brokers.
become an industry favourite
But, the big gap for us has been household
and we’ll be bringing a dedicated household
product onto the market for brokers this year.
Insurance Brokers’ Monthly February 2010
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