High times at Higos

Ian Gosden is determined for his business to be a high profile outfit. Helping fulfil this ambition, the broker won two awards this year, the Training Award at the British Insurance Awards and the Private Clients Intermediary of the Year at the UK Broker Awards.

The past five years have seen major change at Higos, and the next five are set to be even more momentous. Starting as a one-man-band 16 years ago, Gosden, a former financial adviser, started to sell general insurance to his peers. The client base has expanded and the focus has changed from personal insurance to becoming, as Gosden says, an "all-rounder".

In the past four years Higos has started to grow through acquisition, having now completed 10 with the latest buy being Sharp Insurance of Newbury, which specialises in insurance for young drivers and has schemes for modified cars. The next acquisition will be unveiled in January, and a staggering eight brokers were competing over the £2m gross written premium business. Another similar-sized acquisition will be completed in February. Citing Higos' advantages over competitors in this situation, Gosden says: "We can take the smaller ones over and absorb them very quickly. We are looking in the South West but the infrastructure has to be right."

Although the existing mix of business is predominantly household, Gosden wants to develop its commercial book substantially. Higos Direct is one outlet. It sells home, motor and small commercial products. A processing centre will be up and running in Somerton in the new year, while a high street branch is open in Glastonbury. Although essentially used as an office, it produces a few new 'walk in' leads a day. Gosden plans to replicate this approach by creating a network of 10 retail sites by the end of 2008, with six in operation by the end of the year.

The wholesaling element, now called Higos Underwriting, has been stepped up with the additions of Acorn, a niche player - including fish and chip shop insurance - in January and Access Underwriting Agencies from Jelf Group. The aim is to provide motor, small commercial, household, contractors and high risk liability. It is looking to establish long term relationships with brokers. An official launch for this service is expected in March.

Meanwhile, Trudy Brown is personal lines manager and runs a team of 30 staff. A 'platinum team' was launched in May 2005, which deals with high net worth clients, and involved a significant reorganisation of its HNW service and insurances. Ultimately, Gosden's aim is to be able to "broke what the public wants", adding the more unusual the better and that it can provide service seven days a week up until 10pm.

Gosden, who owns 61% of the business, says: "I want to be in the top 50 in the UK and to have a gross written premium of £100m by 2012."

However, he warned: "The soft market is hurting and there will be more of the same next year." In the shorter term he would like to grow to £50m by 2008.

Training and recruiting is of paramount importance to Gosden. He says: "The insurers taught me, and if they are not doing it who will? We spend an awful lot of money on training. We teach the insurance foundations ourselves and provide sales and management training." He is leading by example by taking a diploma of directorship at the Institute of Directors with company secretary Claire Blaymires. He also spends time recruiting at local schools.

Gosden is concerned with the quality of insurers' service and service agreements. He says: "The job cuts and reorganisations impact us every time. Also, I'm not keen on overseas call centres. We have agreements that Zurich and Norwich Union will not use them with our clients. Accountants are running the big organisations but people will pay more to have a local service."

Gosden is relaxed about the implications of commission disclosure. Higos already states average commissions on its Terms of Business Agreements. They are separated into commercial, household and motor. He adds "Commission disclosure is not an issue for us; if people want proper advice you will talk to professionals."

The £100m GWP target is ambitious but the investment in office space, a remote access telephone system, staff and acquisitions to date have secured a strong foundation for further growth.

HIGOS INSURANCE SERVICES

Managing director: Ian Gosden

Established: 1990

Number of offices: Three

Locations: Wells, Glastonbury, Somerton

Number of staff: 130

Main lines of business: Household, motor and commercial

Gross premium income: £24m.