Smith at your service

If you know somebody who doubts the importance of service in broking, an afternoon with Nigel Smith would remove these doubts. He enthuses: "Broking is like a social service, there is nothing better than sorting out a client's problem."

Roland Smith, in its 41st year, has had delegated authority to handle claims for household cover for more than 10 years. Smith says: "If somebody sends us a receipt of the item, then that is all the proof we need."

For Smith, offshoring, which is seen as the latest challenge to quality service, is such a big issue, he readily brings up the subject. Indeed, his brokerage only deals with call centres in the UK and this is stipulated in all his contracts with insurers. He says: "Offshoring is poor quality. When two major insurance companies announced plans to offshore, we were bombarded by clients asking us to change their insurer."

However, it is not all bad news for insurers, Smith continues: "Service standards have improved in the last five years, but they still aren't good enough. Brokers have different statuses with different insurers."

The main core of business at Roland Smith is personal lines, including protection cover, for serving and retired police officers and firemen.

There are 43 police forces in England and Wales and each force has its own federation. Roland Smith has affinity agreements with 26 federations, including all four in Wales.

For the protection products, officers go directly through The Police Federation, while for house and motor insurance they are directed to several brokers including Roland Smith.

Roland Smith's success has been founded on gaining new policyholders. Smith says: "We have grown our number of policyholders every month for over 20 years."

Personal lines comprise 65% of the business, while there are more than 45,000 policies on its books registered with more than 20,000 customers; Roland Smith also has a financial services division. Commercial insurance, mainly fleets, makes up around £3m of gross written premium.

In October this year, Smith concluded a deal with the National Federation of Roofing Contractors, which allows them to provide their members with motor fleet insurance; Smith estimates the market is worth between £7m and £10m of GWP. Smith comments: "A lot of roofing contractors are small businesses relying on being on the road, and we have helped develop a cover that is relevant to their needs."

Marketing is crucial, and Smith says he advertises in the magazine for the National Association of Retired Police Officers, on the internet and through mail shots.

On commission, Smith does not have a problem if commission incomes are disclosed for commercial clients. However, he argues that commission on motor and house insurance should not be disclosed, because the direct companies are so dominant.

And, he has the following warning for insurers over the issue of conflicts of interest: "The way some insurers do certain forms of remuneration is wrong, and encourages conflicts of interests. I think it is wrong that insurance companies offer my staff free entries to win holidays."

The broker uses Misys General Insurance, now up for sale, and has started to move towards a paperless office. Smith has a large room of filing cabinets, and says there are plans to archive all of the files electronically.

Despite the success of Roland Smith and others, there has been an exodus of underwriters out of Liverpool. Smith comments: "I do not see the situation changing; Manchester is very dominant."

Although 2005 has been a slow year due to regulation and a soft motor market, Smith is confident of sustained growth in the next two to three years, especially in the police market. With the introduction of the new deal with roofing contractors, Roland Smith, which is cash rich, looks set to continue its success. And, Smith, at 51, is determined to run the business for years to come.

ROLAND SMITH

Managing director: Nigel Smith

Established: 1965

Number of offices: one

Locations: Liverpool

Number of staff: 71

Lines of business: mainly personal lines for police and firemen

Gross premium income: £20m