Scott's independent model

While the broking market continues to consolidate, it is becoming clear there are a large number of brokers in their forties who will not sell at any price. Andrew Scott, who is one of them, says: "I have had approaches but it is very simple - I want to work for myself. I can't imagine any amount of money will change my view. I'm 43, not 53 and I don't want to be part of somebody else's model. I want my own model."

Scott's model emphasises service rather than expertise. Confidently, he picks up the phone to call his branch as a 'customer' and within two rings it is answered.

Focusing on large corporate businesses with between 50 and 500 employees, the broker has been growing consistently both organically and through acquisitions, which have been self -financed for the past 10 years. Scott, who is grateful to the insurance industry for giving him an opportunity after falling out with stockbroking - after suffering from what he perceived as its public school bias - and left his job at a large national broker with the desire to achieve an "exceptional client service."

He says: "It was always the target to create the pre-eminent broker in the region. We aimed at large commercial business in the South east and competed with the nationals from day one." Since then, the client base has expanded across the UK and he adds: "We still don't come across many independent brokers (in competition) and there are probably a hundred brokers in Kent."

Scott continues: "Growth has been steady, controlled and sustainable, and we are looking for that to continue in the next 10 years."

There have also been 12 acquisitions, mostly books of business, with the first in 1994 and the latest, DE Cummings in Aldershot, early this year. Buying the general insurance portfolio of Graham Brown in March 2005 led to a Cornwall office.

In an unusual move, Scott drew up a 10-year plan three years ago to demonstrate that he expects the firm to be around for a long time. The plan is to double income from £5m (expected in 2006/2007 pre-acquisitions) to £10m, grow premium income to £75m and staff numbers to 125. Scott has plans to acquire three more brokers in the next 18 months, adding he is more likely to acquire in a soft market. Cryptically, he said that the "hard market is further away than many commentators suggest."

Aston Scott, which has 3500 clients, has good relationships with Norwich Union and NIG. There are three NU underwriters in West Malling and four NIG underwriters in Guildford. Is there an anti-competition question behind these arrangements? Scott says: "Each contract is put out to tender and, by centralising small to medium-sized enterprise accounts in bulk buying, we are providing better cover, service and price. I believe strongly these solutions will stand the test of time."

He is unhappy that in insurance there is a precedence of brokers being given similar terms from insurers, notwithstanding the differentials in presentation. Expanding on this theme, Scott comments: "The insurer is duty bound to quote the broker who has spent 20 hours on a risk and the one who has spent two hours - this does not reflect the work load."

Scott is also keen to embrace regulation under the Financial Services Authority. He says: "I could never understand why the Insurance Brokers' Regulation Council was voluntary. We are pleased to see a mandatory body and we are aiming to be in top 5% of brokers for compliance. At the moment Robin Wood Associates, which we have recently hired to help us, say we are in the top quarter."

Scott is also in control of another challenge for brokers - recruitment. He says: "We offer a balance of internal and external training, recruit locally and provide a mixture of stability, motivation and progression. We are also able to integrate staff from other brokers and progress them."

Although Aston Scott has kept a relatively low profile, it is a business which typifies many brokers. Starting up with a small number of employees but growing to become yet another large pain in the neck to the nationals. We wait to see if Scott can achieve his 10-year plan with interest.

ANDREW SCOTT

Chairman: Andrew Scott

Established: 1993

Number of offices: Three

Locations: West Malling, Guildford and Padstow

Number of staff: 70

Main lines of business: Large corporate

Gross premium income: £31m.