Training and retaining

Barnett & Barnett fought off competition from Allianz Cornhill, Halifax Home Insurance, Legal & General, the Chartered Insurance Institute and the British Insurance Brokers' Association to win this year's British Insurance Award for Training. B&B was also one of three finalists in the Commercial Lines Broker of the Year category.

Neil Campling, managing director of B&B, says: "One of the reasons for us winning the award was due to the major commitment we have made to training and developing our staff. This seems to have been best summarised by one of the judges, who said that this is a great example of how a company has seen the value that lies in training, seized the opportunity, paid more than lip service to its requirements and demonstrated that training can have tangible business benefits."

For Campling, training is important for attracting new staff and retaining existing employees. He believes it is important to continually develop employees to meet the growing need for specialist skills within the business.

B&B has a training budget equal to 5% of its income and 30% of net profit.

It offers a variety of training methods, for example, a weekly one-hour training session for all staff; staff are given time off to attend college and bonus and salary increase incentives are in place to reward success.

Campling says: "We offer a good working environment with all the necessary tools for employees to carry out their role. These include IT, technical assistance and a remuneration and employee benefits package that includes a profit share bonus scheme. We always to look to promote from within and give our staff responsibility to make decisions."

B&B is already seeing the rewards for its investment with staff turnover at an all-time low, and only one person leaving the firm during the past 18 months. It prides itself on providing a high level of service and improved competence and skills has resulted in a client retention rate of 98%.

B&B has four main divisions: commercial, risk management, claims and financial services. It also offers a personal lines service for commercial lines clients.

The commercial department is split into five specialist teams: transport and logistics; IT, telecommunications and electronics; construction; franchising; and other corporate business.

A full account management service is provided by a dedicated team, which includes programme structure and design, mid-term meetings and renewal meetings, provision of market information, remarketing and negotiations with insurers, advice on policy wordings and legal documents relating to insurance and the provision of an insurance manual.

Campling says: "We are highly professional, offering the complete insurance and risk management service on a one-stop basis. The role of a professional broker has changed from that of cover arranger to a consultant on all matters relating to risk and claims."

The risk management division can provide business health checks, health and safety advice, support and audits, motor fleet risk management, disaster recovery and business continuity planning and property loss control.

The claims department provides a complete claims service including an emergency out-of-hours service, claims presentation and claims negotiations.

Campling argues: "As far as difficulties with the market and changes we would like to see, we would like more insurers to provide differential rates for quality broking presentations. We would also like to see rates that reflect the implementation of risk management."

B&B has applied to the Financial Services Authority for direct authorisation and, although still waiting for its minded-to-authorise letter, B&B does not have any concerns regarding FSA acceptance.

Going forward, B&B is looking to acquire, and is currently in talks with, three brokers. To cope with planned growth, the firm has recently moved to new premises that can accommodate up to 80 staff.

Campling says: "As the market softens, undoubtedly, competition will increase, however, we have invested heavily in new business production and aim to win substantially more business than we lose. There are obviously additional costs related to regulation, however, the overall benefits to the industry in terms of professionalism outweigh this cost."

BARNETT & BARNETT

Managing director: Neil Campling

Established: 1923

Number of offices: one

Location: Isleworth

Number of staff: 50

Lines of business: Commercial and some personal lines

Gross premium income: £20m.