RESIDENTIALlettings
Industry Profile
Back office back-up looks at lettings insurance specialists, PropertyRisks and its ‘easier way’ of doing business with agents. I
n 2005, when the lettings industry was still adjusting to the impact of the introduction of FSA regulation on the agent’s role in let property insurance, a new player was emerging with a
proposition designed to fill what it perceived as a gap in the market. Five years down the line, let-property insurance specialists PropertyRisks still regards itself as a young business but one which has more than established its credentials with a business model that works for letting agents. One of the founders, Miles Ritchie,
describes where the opportunity lay, “Post the establishment of the FSA in 1997 and The Financial Services & Markets Act 2000 (FSMA), there was turmoil in the market as agents struggled to see how they could continue to transact insurance business. There was a tendency amongst existing providers to push agents towards Appointed Representative status with all the responsibility and administrative burden that involved. “At the same time, we felt that some of
the existing providers were losing their way because they were trying to operate under a completely new regime, with all of the demands that brought about, including legacy operating systems. “We saw that there was an opportunity
to offer a much better service, in conjunction with superior IT capabilities which would offer agents an easier but still profitable way forward. As a newcomer to the market we were able to take a fresh view and come at the business from the agent’s rather than the insurer’s perspective. We aimed to create a business model based on an understanding of their business that positioned us alongside the professional letting agents.”
52 JANUARY 2011 PROPERTYdrum Miles Ritchie with Leaders MD Paul Weller
The agenT parTnership PropertyRisks’ ‘easier way’ was to offer a partnership arrangement where agents have the option to become an IAR (Introducer Appointed Representative). Without being subject to the same degree of regulation as ARs. IARs can offer clients general guidance on the advisability of insurance and, with their permission, pass contact details to the partnering insurance provider. The agent benefits from commission on any resulting business including renewals, without any direct involvement in the sale process. In this relationship, PropertyRisks describes itself as the ‘agent’s insurance back office’. There were three strands to the
promotion of PropertyRisks, specialist knowledge of the let property industry, an understanding of the unique risks faced by landlord and tenant and an approach based on risk management services, primarily tenant referencing. At the outset, PropertyRisks worked with Experian to develop its tenant referencing capability into something more comprehensive, feeding off an understanding of the risks involved. The directors were then able to look at the appropriate insurance solutions to cater for those risks.
service reTains business Asked what he believes PropertyRisks’ distinguishing feature to be, National Business Development Manager, Nigel Atkinson highlights service. He says, “It’s easy to sell on price but we believe our single biggest USP is service which is reflected in our business retention rate of over 80 per cent. We have grown rapidly over the last two years and we secure much of our business by word of mouth.” With some of the industry’s big names
amongst its portfolio, including groups such as Leaders Limited, Andrews Letting and Management and Spicerhaart Residential, PropertyRisks doesn’t turn its back on the smaller players. Nigel Atkinson, “We are happy to work with agents in a start-up situation, offering
business model based on an understanding of their business that positioned us
We aimed to create a
alongside agents.” MiLes riTchie properTyrisks
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68