Daulby Read - Turning back the years

Chester has a real community feel to it, despite a population of around 120,000. It is a town where the local broker is almost designed to survive; it is relatively easy to keep in contact with clients and track changes in the local market.

There are five brokers in Chester and, although it has been a consolidation-free zone for years, acquisitive Giles Insurance Brokers entered the market in March with the acquisition of Robinson Leslie, which is run by Andy Piggott.

Completing a mini-circuit of Chester-based brokers, Steve Daulby had to wait until October last year to leave his previous broker after deciding to make the switch back to his first broker, Read & Co., in December 2006; he feels that he is back where he belongs and believes he will be there for the rest of his career.

Since Daulby's return, the firm has reapplied to the Financial Services Authority in order to change its name to Daulby Read, meaning that the company is officially a new one, with around half of the business brought by Daulby from his last business.

Network

The broker has benefited from being a member of the Broker Network since 2003 and, despite initial scepticism from Daulby, he has warmed to the offerings that the Towergate-owned broking group has sourced with the aim of helping independent brokers to thrive.

The Broker Network assists Daulby Read with branding, marketing and access to markets such as Lloyd's. There appears to have been little change since the start of Towergate's ownership, although inevitably the door to Towergate's own markets has been opened up and are encouraged as an alternative. Although the Broker Network takes some premium each time a transaction is made, Daulby feels that the costs are worth it.

The broker's business is 90% commercial and insures anything from a self-employed joiner to a chain of hotels; its premiums are generally between £7,000 and £75,000. The firm is also looking to expand its high net worth offerings, which includes company directors and markets such as Home & Legacy, Chubb and Zurich. In addition to traditional cover, Daulby Read offers a full claims service, business continuity planning and access to two health and safety consultants. Clients are based predominantly in Chester, Liverpool, the north-west, north Wales and even the south coast. Daulby comments of them: "We care about our clients and give them great attention to detail. We are conscientious but we are also salesmen and want a good book of business."

Daulby Read uses a range of established insurers such as Norwich Union, NIG, Groupama, Axa and Allianz and has been especially impressed with Zurich's decision to unify its personal and commercial offerings. Daulby says: "Zurich treats you like a proper broker and our philosophy is to support an insurer as much as we can." The broker also uses specialist schemes and Lloyd's underwriters.

Although it has dealt with insurers in Liverpool historically, Daulby Read now does business with firms in Preston, Manchester and Leeds. Daulby is phlegmatic about the change, saying: "Things change all the time." Insurers' models may well be about to change again judging by the recent announcements of job cuts by Zurich and Norwich Union.

Innovation

The company is not settling for traditional risks, recently having launched a niche scheme for foot and mouth disease in conjunction with a Lloyd's syndicate. The cover is for business interruption insurance designed for livestock auctions affected by the disease - the cover is also available to other brokers.

Half of Daulby Read's office is already paperless and it is hoping eventually to scan everything using its Acturis system. Daulby implemented the change of system before joining, one of the benefits of which was being able to migrate his book of business easily.

Daulby started his career at General Accident and was soon poached by Mike Read, on which he recalls: "A broker was god when you were a junior at GA." Daulby enjoyed the switch but became frustrated with the lack of opportunities to progress his career and, after narrowly failing to become a partner, he decided to go it alone. He started Daulby and Associates in 1989 and merged with another Chester-based broker in 1998 after he felt pressurised by insurers to grow his business.

Following the merger, Daulby realised that the business was not going in the direction he wanted; he left to work alongside Mike Read's former business partner, Liz Arrowsmith, and son Simon. Unfortunately for Daulby and several of his close colleagues, the move was delayed for almost a year. With this disappointment behind him, Daulby is now looking firmly to the future.

Peter Goddard was one of those who joined Daulby and has been appointed as the company's operations director in control of duties such as compliance, having once headed up a large team for Alexander Forbes in London. The chemistry between Goddard and Daulby suggests a healthy working relationship and that at their new broker they will have much success in competing with their local rivals.

Daulby is keen to grow the business and wants others to help him achieve this. He says: "We are the new kids on the block and we want a year-on-year increase in commissions of 10%. We are looking for executives to join us from across the UK with a book of business and for those that want to grow it."

With new premises in the offing, a firm belief in the people-centred nature of insurance, Daulby Read is set to become a force to be reckoned within the Chester market and the north-west.

Daulby Read, Managing director: Steve Daulby

Established: 2007

Location: Chester

Number of staff: 11

Main line/s of business: SME commercial

Gross written premium: £4.5m.