Personal touch

Manchester-based Reich Insurance Brokers has seen its premium income grow from £10m to £30m during the past four years. Partners Danny Lopian and Simon Taylor say its success is down to their decision to focus on providing insurance and management services for property owners, the majority of whom are in the commercial sector.

Taylor says: "As an independent broker it is essential to be niche. We offer the full range of commercial lines but have concentrated on becoming leaders in the property market and are now one of biggest independent property brokers in the UK."

RIB has a worldwide client base and, as it offers a personal hands-on service, some of Lopian's time is spent abroad looking after the interests of investors.

Lopian says: "We offer a complete service and have the facility to deal with everything on the clients' behalf. We can invoice tenants directly so clients only need to give us instructions."

Taylor joined RIB as a partner in May 2002 after making a substantial investment in the company. As former national client director of Capita McLarens, Taylor had close relationships with major insurers from which RIB has benefited. The broker has strengthened its claims handling division and deals with most claims in-house.

Lopian says: "We work closely with our insurer partners and have our own policy wording. Where we do get claims we have the expertise to obtain speedy settlements."

The broker has a third partner, Mike Drummond, who is now semi-retired and acts as a consultant for the business. RIB still operates as a partnership and both Lopian and Taylor say they have no plans to sell up or join a network, although they are considering changing to limited company status due to its size. Taylor says: "There is much flexibility in being a partnership. For example, if we want to make any changes we get together and it is done."

Getting prepared

RIB has employed a compliance officer to prepare for Financial Services Authority regulation. It has registered to apply for direct authorisation and intends to submit its application at the earliest opportunity.

"We are well on the way to being compliant. We have improved training, issued new employment contracts and brought our internal systems in line with requirements," says Taylor.

Lopian believes that although complying is costly and time-consuming, it has been good for the business. "It has focused our mind on internal procedures and, at the end of the day, we will be a stronger company," he adds.

RIB has a low staff turnover, partly due to its training programme, says Taylor. "We recruit people that have the right personal skills and then take time to train them. This year we plan to divide up an insurer profit share with our employees as a reward for all their hard work."

RIB is in the process of upgrading its website to offer more information about the business, making it easier for clients to contact the relevant departments directly. It is also designing a brochure, which will go out to clients along with its biannual newsletters.

Lopian says: "It is important to keep clients informed and raise our profile with potential clients. Our last newsletter looked at the latest asbestos regulations, the difficulties getting cover for buildings with composite panelling, and the dangers of underinsuring a building."

The broker is sponsoring the Royal Institute of Chartered Surveyors' annual awards for a second time, and is a member of both the Institute of Insurance Brokers and the British Insurance Brokers' Association.

"The IIB has tended to be more in tune with smaller brokers but we felt it important to be a member of both. BIBA offers good courses and the IIB is good for championing the issues of smaller brokers," says Taylor.

Although RIB intends to remain independent, it is looking out for brokers with the right fit and has purchased five firms in the past 10 years. In the meantime, it will continue with its strategy of focusing on property owners and growing organically.

REICH INSURANCE BROKERS

Partners: Danny Lopian (left) and Simon Taylor

Established: 1943

Number of offices: two

Locations: Manchester, London

Number of staff: 32

Gross premium income: £30m.