OUTSOURCING SPECIAL – PERSONAL LINES
Over to you
Geoff Carter, managing director of Fortis Insurance Solutions explains why
handing over personal lines may make sense for some brokers
BM: Are more brokers looking
at outsourcing?
GC: Yes, in part because of the
from their own offices, but at far
challenging economy more
better rates and more efficiently.
brokers are looking at
It is a free systems rental which
outsourcing their personal lines
is paid for through a revenue
business to save costs. They want
share. BM: What should a broker look
to keep their VIP clients but
for in an outsourcing provider?
outsourcing standard personal
BM: What are the main
lines should mean savings and a
concerns a broker would have GC: They should be able to offer
better deal for these clients.
about outsourcing? the brokers customers a range of
benefits such as extended hours,
BM: What type of broker would
GC: The usual concerns would be good products from a strong
consider outsourcing?
dedicated to personal lines to over less personal service. insurer panel, the option to brand
switch them to more lucrative However, in reality, most under the brokers name and high
GC: Commercial brokers who find
commercial business. Outsourcing customers are not bothered about standards of compliance, such as
personal lines is not a natural fit.
is a way to make savings and personal service from their in good TCF principles. The
You need volume, the right
should also mean that customers existing broker - who they may outsourcing company should also
systems and the sector is hugely
have access to longer opening hardly speak to in any case for have made a big investment in IT
competitive as a result of the
hours, such as from 8am until straightforward products - - first rate systems are essential.
aggregators. There are extremely
8pm as well as more attractive providing they receive friendly, And, of course, there should be a
thin margins in this market. And,
pricing. hassle-free service and a great well trained and committed
it may make sense for a broker if
price. The outsourcing company workforce who understand the
they have a member of staff
BM: How much flexibility is should be able to handle a variety importance of looking after
there in outsourcing - what of business, including non- brokers customer and protecting
options are available to standard motor and the lower that reputation.
brokers? ends of mid-net worth It is likely
the broker will want to retain any BM: Do you see any particular
GC: They may just want to high net clients, since these trends in the outsourcing
outsource motor or also require high levels of personal sector developing?
outsource home and travel - all service.
of these are now increasingly GC: I think we may start to see
price sensitive. If required, the BM: Are there regulatory issues some corporate brokers looking
outsourcing company should be with outsourcing? to outsource some of their
able to white label products so smallest commercial business.
that phones are answered in the GC: There are no problems with This is becoming a commoditised
broker’s name and documentation another company handling product and so lends itself to
is branded. Fortis Insurance insurance for another - as the outsourcing. Again, it very much
Solutions also provides an option affinity market has shown. The depends if the broker wants to
called Brokeright, which allows FSA must be informed as must focus on client relations and
Geoff Carter
the broker to have access to our customers, but even if handed by giving individual attention and if
Managing Director
systems and products. They can an outsourced company, it they want to free up more of
Fortis Insurance Solutions continue providing personal lines remains a regulated sale. their time.
14 Insurance Brokers’ Monthly
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