We consult

Leading into the future

"Make no small plans for they have no power to stir the soul."

Niccolo Machiavelli

We: the vision

• We aim to build a virtual community of like-minded people who are open to multi-layered collaboration and trade as an alternative to the traditional institutional business model and an antidote to the difficult economic climate

• A vibrant and creative web-enabled community that, through shared knowledge and skills, innovates and generates wealth amongst its contributors and wider community

• Providing exciting opportunities for training and careers within the community for those willing to embrace the culture of continuous learning

• Creating a suite of insurance products that promote and reward management of risk; a philosophy of "prevention is better than cure"; Community Social Responsibility (CSR)

• Provide a business blueprint for today and tomorrow based upon: values; ethics; stability; loyalty; quality; integrity; trust; compliance; transparency; service; value...peace of mind

Why change?

Historic & current Institution Independence “Me” Win/lose Greed Price lip service “relationship” mistrust

Future Collaboration Interdependence “We” Win/win/win Share Value Service Partnership trust

The “perception” problem:

Customers

view insurance as a grudge purchase

Do not like/trust insurers

Do not trust/respect brokers

Individuals

x Organisations regard time spent [on insurance] as time

wasted

Why?

Customers do not perceive value in products or service

(inevitably feel we are trying to “rip them off”: whether cover/cost OR claims)

Do not view broking as a real profession

Associate insurance with - cost (financial & time),

upset (claims) or, mild inconvenience (at best)

View industry as bankers’ poor relationsoften as flash/brash/pushy/dodgy salespeople

Problem: How do brokers increase their income?

More new business – activity equals reduced margin

Existing business – carry increased premiums or seek out increased commission rates

Existing business – upsell/cross-sell add-on services and products

Costly: 5/6 times more expensive than increasing income from existing clients

Jeopardise client relationship in difficult and competitive times. Short term solution (sustainability?)

Unlikely in tough climate and NOT in conjunction with above

3 possible renewal outcomes...

Success:

Renew & increase income

win/lose

Abuse of relationship!?

(short term or 1 year

win)

Neutral: Renew same income (real loss)

lose/lose

Impaired relationship (medium/long term)

Negative:

Lose business = no income (only costs!)

lose/win

Damaged relationship (medium/long term)Chances of achieving success <20% (circa 1:6)

Handling expenses = min. 2% of premiumRenewal retention rate 90% = status quo (at best): loss

Success:

Win new income (average 20% comm.)

Handling expenses (irrespective of outcome) = min. 5 times renewal (2%) Chances of achieving any success 20% (circa 1:5) Failure rate 80%

Negative:

No new income (just costs!)

Partial success:

Win business at reduced income (average 10% comm.)

3 possible new business outcomes...

If we assume a monthly target of £10k premium handling costs will be £1k which means that:

• Success = £1,000 (£2,000 - £1,000)

• Partial success = NIL (£ 1,000 - £1,000)

• Mixed success (50/50) = £500 (£ 1,500 - £1,000)

• Failure = £1,000 loss per month (pressure on renewal book and costs)

Issues & Barriers: Brokers

Unstinting faith in Institution(s) & Independence

The costs in competing (in pursuit of independent [silo] success)

Fear of change

Lack of vision

Belief in your own PR

Acceptance of insurer “relationship” pitch

Not invested directly in client service (indirectly in improving back

office – primarily to improve own margin)

Not invested in training (investment in the future)

Lack of IT flexibility (costly to change system/products/service to improve the

customer experience)

Issues & Barriers: Insurers Focus upon market share (not underwriting profit)

Drive toward reducing costs and adding distribution

Commoditise products (compromise the integrity) Outsource or offshore client/broker services Go direct (compete with broker channel)

Integrate acquisitions and/or legacy IT systems Model based upon Quantity & Price (not quality & value)

Purveyors of prescriptive “solutions” Transactional (inspite of relationship “smokescreen”) “investing” r.o.c. in

Unsustainable commissions Unsustainable rates…

…with the sole aim of minimising opportunities for competing insurers to capture significant market share ahead of a hardening market

Outcome:

React to market conditions - Keep on doing what you know (with minimal strategic consideration or consideration

for long term) just try to do more of it!

Strive to reduce handling costs (without reducing client

service) Ignore own, staff and client concerns about service and competition from insurers (“usual

suspects”) in return for increased (if unsustainable) commission rates Content to look on scornfully at “aggressive” competitors. Complain about their sales culture and relentless pursuit of income that treats clients merely as a means to meet their own financial targets

What needs to change?

The customers’ perception of our industry!!!

But to tackle this do we actually need to admit that it is the REALITY of our industry that needs to change? Better organisations – better products – better service – better…

Consider this

This is a quotation about professionals from a book by Clay Shirky:

“It is easier to understand that youIt is easier to understand that you face competition than obsolescenceface competition than obsolescence”

Here Comes Everybody“How change happens when people come together”Clay Shirky

status quostatus quo

For as long as we are “content” to accept that we CAN’T succeed with such a huge task on our own and aren’t prepared to invest in improving the overall customer experience we MAY survive but only as reluctant, unhappy, “bit players” in a landscape fashioned by competitors and insurers whose first responsibility is to their own profitability

How do we change?

•By not adapting an attitude of “if you can’t beat ‘em..”•By embedding values, service & relationship in the corporate culture•By collaborating with (a problem shared) rather than competing against (an expense shared) each other•By pooling resources economies of scale: training, technology,

•By engaging with, listening to, understanding and supporting our communities on a variety of

levels

•By promoting & aiding innovation

•By investing in and planning for OUR

futures

"It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change."

Charles Darwin

Successful Strategy

Simple, Consistent

& Long-Term

Objectives

Profound Understandin

g of the Competitive

Market

Objective Appraisal of

The Organisation’s Resources

Effective Implementation

Source: Contemporary Strategy Analysis, R Grant 1998

Succeeding with a Strategy…

IMPROVE CLIENT IMPROVE CLIENT

SATISFACTIONSATISFACTION

Improve Improve

product qualityproduct quality

Offer more Offer more

competitive competitive

pricesprices

Improve client Improve client

serviceservice

Create own product(s)/brand

Negotiate additional cover options

Reward loyalty & profitability

Increase (and use) knowledge of chosen

markets

Consolidate accounts and focus Development (E.O.S.)

Implement results-oriented training & motivation

Ensure consistency of communication & administration

Maintain agreed Service Standards

Promote team culture

Add “support options” e.g. Internet, Claims service

Client Satisfaction Improvement Plan

Simply Insurance & We Network: Company Goals and Objectives

Negotiate and distribute a suite of market leading commercial insurance policies designed to provide peace of mind to clients, profit and unprecedented renewal retention rates to brokers and insurers

Create a brand built upon core product features and synonymous with quality

Work closely with insurers to jointly identify target trade and/or market sectors

Utilise bespoke technology with embedded compliance features and streamlined administration routines to provide an exemplary service to clients and insurers alike

Create the platform for multi channel marketing, distribution and handling

Develop the distribution model to build a broking and distribution business with retail, network and wholesale capabilities

Economic Background: Changing consumer attitudes

UK consumers’ have developed a more “sophisticated palate” and consistently demand better service, choice and value. Irrespective of whether you are part of this movement or not the impact is apparent:

Increasing demand for organically grown/hand-reared/ethically sourced

produce Concerns over “GM

crops” Government action to tackle a variety of health issues

Celebrities promoting healthier eating habits

Support for local and/or specialist traders,

etc. All of which indicate an increasing level of dissatisfaction with what,

during the 80’s and 90’s, became the accepted norm…

…a philosophy that too often sacrificed quality for convenience!

The growing numbers of people who endorse the VALUES that sit behind these types of initiatives feel, if not “disgust”, then a deep and understandable distrust of major UK & Global institutions. Their greed led them to abandon the kind of corporate governance that they sought in others and, therefore, one would assume employed themselves!? Now they have left the more prudent amongst us to pick up their bills!!!

Generation G: “Giving is the new taking…sharing is the new giving”!!!

Product Development: Features & Benefits

Client “Pain Points”Client “Pain Points” BenefitsBenefits

Premium increasesPremium increasesPolicies designed to manage worst Policies designed to manage worst

impact impact of fluctuating market conditionsof fluctuating market conditions

Ability to budgetAbility to budget Fixed insurer rating Fixed insurer rating

ServiceService Telephone and electronic service for Telephone and electronic service for advice/quotes/adjustments/renewaladvice/quotes/adjustments/renewal

CoverCover Market leading commercial “All Market leading commercial “All Risks”Risks”

Accessibility to Accessibility to recordsrecords Access to own client cover summaryAccess to own client cover summary

Risk Management Risk Management costscosts Rebates reward good claims recordRebates reward good claims record

Insurer continuityInsurer continuity Insurer provides a share of the Insurer provides a share of the profits as renewal discountprofits as renewal discount

Time costTime cost No need to seek annual quotes No need to seek annual quotes

Premium payment Premium payment costcost 0% or <5% direct debit facility0% or <5% direct debit facility

Business Continuity Business Continuity PlanPlan Free planning assistanceFree planning assistance

ClaimsClaims Dedicated loss adjuster, claims Dedicated loss adjuster, claims Management and trackingManagement and tracking

Product Qualifying criteria(p = personal; c = commercial)

Exact parameters to be negotiated for individual contracts but, broadly, subject to acceptable:

Trade c

claims experience and/or,

Acceptable post loss steps to prevent a recurrence p/c

Sound understanding of own business (refer Product

features) c

H&S compliant c

Current Business Continuity plan

IT/web enabled c

Appropriate intruder and fire protections p/c

Simply: Product components

Web

Alterations

Client enquiries. MTA’s: incoming instructions and outgoing documents

Web

Newspage

Newsletters, promotions, legislative and trade updates

Web

DocumentRepository

Client access to insurer & broker doc’s or accounts

Web

Marketplace Profile

Means for businesses to promote products/services

Web

Services

External services in addition to insurance e.g. legal (HR), Risk Management

Web

Accounts

Current invoices & balance. Annual spend year to date. Direct debits & BACS

Web

Claims

Intimations, supplementary info. updates & settlement amounts

Web option

Client

Development of client: Website; Intranet; Extranet

We community

Web option

Professional Advisers

Access for existing advisers to client info. ALSO opp. for adviser to create own site

InnovativeClient

Solutions

It is about each of us being 100% comfortable in our given role. Learning and performing that role to the best of our ability. Relying upon and being relied upon. Communicating. Working as part of a team and an interdependent organisation with a common goal. Contributing to the successes and sharing in the rewards.  INTERDEPENDENCE: “a reciprocal relation between interdependent entities (objects or individuals or groups)”

   

Development

  (Heart) 

Client Services

   (Stomach)

Broking  (Brain)

Operational ethos

 We

consult 

 We

systems 

 We

network   

WeInsure

 

 We

community

 

 We train

   

 We

counsel

 We

create

 Knowledg

e pool

Web marketing

Insurers

Collaborations

Social Media

 We

consult 

 

We systems

 

 

We network

  

WeInsure

 

 

We communit

y 

 

We train

   

 We

counsel

 We

create

 KnowledKnowledge poolge pool

Web marketing

Insurers

Collaborations

Social Media

Introducers

IT partners

Clients

Marketplace

Affinity Groups

Affiliates

We have the answers

We

respond

invest

serve

reward

guide

innovate

protect

partner

market

represent

plan

collaborate

budget

connect

create

brand

design

train

believe

sponsor

manage

promote

insure

research

develop

trade web 2.0

fix

care

contribute

facilitate

network

communicateinterpre

t

supportengage

design

listen

organise

consult

arrange

donaterecruit

help

fund

organise

share

endorse

inspire

present

lead

What do We do?

Enterprise 2.0

The Team• We would be (very) surprised if you didn’t want to know more and to

find out how you can participate!

• David G Wilson– Strategic Development Director, WH & R McCartney Ltd

– Creator of the “We community” and “Simply Insurance” vision

– Email: davidmillbrae@hotmail.com– (m) 07919 917150

• Derek Smith– Director, Red Mosquito Ltd– Web, network and internet

• Pascal Holt– Managing Director, Brandsavvy Ltd– Brand and creative specialist and experienced collaborator