How to pitch a schemes idea

Some businesses simply don’t fit with the insurer’s ethical profile. Before you pitch your scheme idea, make sure you get to know the potential partner’s values, ethics, and beliefs – this is an important part of the fit.

You need to understand risk appetite as well. Is there synergy with your risks and those of the insurance partner? It may well be the case that the scheme's risk appetite differs from their open market appetite, so it is worth spending time discussing your idea and understanding the potential fit. Most scheme providers will give you an initial feel for their appetite in marketing brochures and on their website.

This is a broad area, but basically, it’s about asking yourself:

• Do you truly understand the customers you’ll be serving and their core needs?
• What do you know about this market?
• How saturated is the market in terms of schemes operated by other brokers?
• How will you distinguish your scheme from all the others?
• What is your Customer Value Proposition?

Ultimately, your insurance partner wants to understand the details of how you’re going to access the market and how you’re going to stand out to grow and sustain your new scheme. The more data and insight you can provide, the more the insurer can buy into your vision.

Some of the best schemes we support were chosen by the broker because they have a personal interest in and a passion for the work of their customers. These include charitable causes, amateur sports, collections, and the equine world, to name but a few.

Having a passion for a particular sector not only makes launching the scheme easier but, more importantly, it gives you access to people you may already know through shared interests. Having access to networking groups that will help you reach by demonstrating a shared knowledge and expertise in your chosen scheme.

Being able to show your insurance partner these attributes is an important factor in their considerations.

Insurers, whilst generally focused on rollover and consolidation ideas, will remain open-minded on speculative ideas, but generally only those speculative schemes that are well planned.

A broker may feel really strongly about a speculative scheme idea but be unsure about how to reach the target market. That’s why a strong route to market plan is a must when putting forward a proposal to your insurance partner. A robust plan will prompt important questions around how you’re going to reach your market, your proposition, and the timeframe for creating a long-term, viable scheme.

If you already have an existing and successful scheme somewhere in the business, use it to demonstrate your track record. If you can demonstrate traction to the insurer, then your plan will be all the more attractive. Equally, if you have considerable open market experience in your chosen scheme area, share this with the insurer in your pitch. Insurers will also be more drawn to brokers with proven and qualified DA, claims, and risk management team members and a proactive philosophy in these areas.

You’ve done the hard work, so now you need to ensure that your insurer can work with you to support and grow your scheme. You need an insurer with the right underwriting skills and DA trust, award-winning claims service, product development and governance expertise, and the ability to provide you with the right trading platform to enhance your B2C capability.

If you’re asking the right questions, the insurer will recognise the thought that has gone into the pitch. Also, and this is key: quiz them on their ability to onboard your new scheme. Look for evidence that they have a robust, collaborative process where you’re fully supported during the transition.

Don’t be afraid, also ask how they will support you in growing your scheme – the key to the scheme's success is like-minded people pulling in the right direction to make a mutually beneficial partnership.

* Scheme’s Study March 2022 with 171 brokers.