In the driving seat

Motor specialist Allen & Allen was established in 1968 by Dennis Allen, who originally worked as a one-man band from his home in Twickenham.

Allen's first employee was his son Tony Allen, now chief executive officer of the Allen & Allen Group.

Named Personal Lines Broker of the Year at this year's British Insurance Awards, Allen & Allen distributes its product through direct retail, the internet and wholesale and has a number of different teams working across its divisions. Around 90% of its business is private motor and commercial vehicle. It also offers household and a small amount of commercial.

The firm's wide range of motor insurance products tends to focus on difficult risks, for example, young drivers, convicted drivers, high-performance and prestige vehicles.

Allen says: "A large proportion of our business is with what I call 'rehabilitated drivers' - who started out as convicted drivers and have stayed with us for years because we have provided a good service.

"Our renewal retention, given the market we are in, is extremely good. Much like the obsession in this country with owning houses, there is also an obsession for shopping around for car insurance. This doesn't happen as much in other European countries. There is pressure for people to change insurer and this drives competition."

Allen argues that there is still a place for brokers in personal lines provided they offer something different to the direct writers.

He says: "The direct writers tend to have only one product to offer, whereas we have a complete range. There is a role for traditional broking standards that are linked to the technological world. We have a niche market that we have built up over many years and we add value for insurers in terms of our risk selection."

In order to maintain communication with its customers, the group has set up a renewals club, offering benefits to renewal customers such as: breakdown cover; a welfare helpline; travel assistance helpline; and driver training. It has also introduced a regular newsletter to keep customers abreast of new developments and services.

Regulation by the Financial Services Authority can help improve customer service according to Allen. He says: "We try to look at regulation in a positive way - how it can help us develop a good service for our customers and pinpoint problems in the business."

Allen places great importance on retaining staff and ensuring they reach their full potential. Its in-house Acorn scheme aims to identify future team leaders and managers. Existing managers are also encouraged to further their skills and development through training by external suppliers. Senior staff are also offered a mentoring service where they discuss their career development with an external agency. Allen himself has a mentor.

Allen believes the internet provides great potential to grow new business.

Its Quoteacar website, which offers customers a choice of insurance quotes, has already proved successful in terms of new business generated compared with set-up costs. It is also due to launch three new dedicated websites - one for 17- to 29-year olds, Miss Motor Quote for young women and a website specifically for convicted motorists.

Marketing has been a key factor in Allen & Allen's success and it has a dedicated marketing department. However, Allen says: "There is a war developing among the direct writers to spend more on marketing to attract customers. This, coupled with the reduction in the average premium, is worrying for the stability of the industry over the next two to three years." Despite this, Allen intends to grow the business.

Allen & Allen acquired Tangent in 2003 and is currently in talks for further acquisitions.

He says: "We are keen to acquire strong brokers in specialist niche areas of the motor market in which we do not currently operate. We are also in negotiations to white label for two major entities that cannot be named at this stage."

ALLEN & ALLEN

Chief executive officer: Tony Allen

Established: 1968

Number of offices: five

Locations: Fulwell, Twickenham, Ashford, Basildon and Leonard, France

Number of staff: 450

Lines of business: Private motor, commercial vehicle, household and commercial lines

Gross premium income: £80m.