Once you have an idea for a potential new scheme it’s important you think carefully about the best way to share it.
Many brokers have an interest in launching and running a scheme. While it may feel daunting to start your own scheme, opportunities do exist, even in today’s crowded market.
So how do you make sure you have the best chance of securing the support of your insurance provider?
There are some businesses that simply don’t fit with the insurer’s risk appetite or their ethical profile e.g. gambling or tobacco companies. Get to know the insurer’s business personality, look at their risk appetite and make sure your scheme fits in with the areas they are already supporting.
It may well be the case that their Schemes Risk Appetite differs to their open market appetite so worth spending time discussing your idea and understanding the potential fit.
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?
Ultimately, your insurance partner wants to understand the detail of how you’re going to access the market and how you’re going to stand out in order to grow and sustain your new scheme.
We have supported some schemes which were chosen by the broker because they have a personal interest in and passion for the work of their customers. 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. This could include having access to networking groups that will help you reach new customers.
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 marketing plan is a must when putting 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, 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.
You’ve done the hard work, now you need to ensure that your insurer can work with you to support your scheme. You need an insurer with the right underwriting skills, claims expertise, product development expertise and the ability to provide delegated authority and to run well governed, compliant schemes.
If you’re asking the right questions, the insurer will recognise the thought and understanding which has gone into the pitch. And remember to quiz them on their ability to on-board your new scheme. Look for evidence that they have a robust process that is fully supported during the on-boarding process.
Don’t be afraid to ask how they will support you in growing your scheme – the key to success is a strong, mutually beneficial partnership.
Do your market research, choose an insurance provider that will support you and your scheme and remember that the biggest schemes in the market today started from small beginnings.