Putting his cards on the table

Taking on the role of chief executive of the British Insurance Brokers' Association was not an easy decision, says newly appointed Eric Galbraith.

He says: "I have spent all my working life in the commercial world as a broker and working in an insurer/banking environment so it is a big change. I decided to go for the role as I am fascinated with the industry and with major challenges facing the broker market, such as regulation by the Financial Services Authority. It is a huge opportunity."

Galbraith is well known in the broking world and was formerly managing director of Hill House Hammond. He has 35 years' experience in the industry, beginning his career with Marsh, running the Royal Bank of Scotland Insurance Services and also working for Norwich Union.

He admits that heading a trade organisation is a completely different ball game, however. Just a couple of months after his appointment, Galbraith is still finding his feet. He has immersed himself in the organisation and has been busy meeting key industry figures, including BIBA members, the FSA and partner organisations.

Galbraith is keen to maintain and improve relationships with organisations such as the Chartered Insurance Institute, the Association of British Insurers and the Institute of Insurance Brokers. "I want to ensure we continue to work together and build closer relationships. It is very important we provide the right voice for the industry," he says.

But BIBA is not just the campaigning voice for broker members. Galbraith is reviewing the whole organisation and plans to take it forward in terms of what it can offer brokers.

He explains: "The former chief executive, Mike Williams, did a great job in promoting BIBA and raising its profile but when you come in to an organisation as a CEO you always look at how it is run and what changes could be made. I am looking at how we can develop the organisation around the changing industry - moving BIBA on to the next stage."

BIBA is a not-for-profit organisation and acts in the interests of its members, though Galbraith intends to use some of his commercial know-how to ensure, where possible, that BIBA always has a small surplus of cash.

He is meeting with BIBA's facility providers this month to discuss how to develop and expand its schemes. BIBA will also consult with broker members to find out what products and services are in demand and has produced a brochure to market the facilities and raise awareness.

The BIBA Schemes Collection offers a range of products and services to which members have exclusive access at favourable rates. It includes BIBA Breakdown, Commercial Combined, Marine Cargo and Terrorism Liability.

It also offers a Broker Business Portfolio with exclusive money-saving deals such as computer virus protection, premium finance and BIBA Risk Management.

Galbraith says: "A lot of good facilities are in place that make money for the organisation in addition to the members' fees. This is then used to develop resources and assist brokers in areas such as technical issues."

Galbraith does not believe there will be any conflict with providing schemes and FSA regulation. "We don't give advice on the facilities and I have been advised we don't need to register with the FSA, but the issue is still under consideration."

The internal review will also examine how enquiries are dealt with by the organisation. Galbraith says the volume of enquiries and the range of matters BIBA is asked to comment on by members and the public is surprisingly large. He plans to find out if these can be handled more efficiently.

He says: "We have a good team in place and staff provide an excellent service. However, I would like to see supplemented resources in certain areas of the organisation, for example, help with FSA regulation and training."

BIBA is also looking at setting up a new technology forum but Galbraith says the project is at a very early stage. BIBA is currently consulting on what need and opportunity there is, and what the initiative might look like.

"New technologies are providing good opportunities for the broker market but it is important brokers choose what is right for their needs. Every firm is different. IT is moving forward very quickly and the challenge is to choose a system that will last at least three years."

Galbraith would like to see more uniformity in the market and argues that the industry has to work more closely to avoid costly duplication.

He is optimistic about Polaris imarket and believes it is an opportunity for insurers and brokers.

Galbraith is keen to build on the success of BIBA's e-learning-based solution Broker Assess, which was launched last year in conjunction with the CII. Broker Assess aims to help brokers meet their training and competency requirements under the FSA.

He says: "Broker Assess is an excellent tool and we have had a good response from brokers using it. We are working with the CII to develop it further and I would like to see it become the industry standard."

BIBA represents the interests of brokers large and small and Galbraith believes it can continue to provide something for everyone, including provincial brokers, London market brokers and global intermediaries. "I hope the range of services covers all segments of the market. For example, BIBA provides a range of training courses, from getting started in broking to some of the more serious risk management, and we will continue to add new products," he says.

FSA regulation applies to all brokers and is the major issue for the industry this year and onwards, says Galbraith. He urges brokers not to wait to register for FSA authorisation.

He says: "The opportunity to register is here and brokers should get on with it. BIBA hopes to hold a number of workshops in January and February, which will cover everything to take brokers through the application process to becoming compliant," he says.

Unknown factors

Galbraith is concerned the cost of FSA regulation is yet to be revealed and says there are lots of hidden costs and unknowns. However, the cost of regulation and training has to be absorbed and BIBA is looking at how brokers, particularly small firms, are going to deal with it.

"Brokers should use regulation as an opportunity to improve professionalism, to ensure as an industry we are proud of what we do," he says. "Broking is about providing choice and good advice. It all comes back to customer service. Brokers provide an excellent distribution route and this will continue to be the case."

Galbraith advises brokers to get in touch with BIBA's technical team if they need help with the application process. He also recommends visiting the FSA website, which offers free information and advice. Galbraith says the FSA has been responsive to BIBA and is approachable, and is doing an excellent job.

Galbraith points out that when brokers register to apply they do not have to be compliant. Registration simply means you intend to be fully compliant by January 2005.

He says: "The broking community is a vibrant community and one that will see new entrants and consolidation, particularly with the many networks that are emerging."

Although he expects to have fewer members in the next few years, Galbraith is keen to ensure the industry maintains its existing high volume of business.

He believes networks are part of the changing dynamics of the market and are largely good news for brokers.

He says: "I am delighted most of the networks are BIBA members and that they are supporting the industry and providing a voice for brokers. There are networks that focus on independent brokers and some that provide all services - it is up to individual firms to decide which is right for them."

In addition to BIBA's work on regulation, Galbraith is keen to continue campaigning on issues that affect the industry. He says there are many things that BIBA is getting involved in.

Employers' liability insurance continues to pose problems, but Galbraith believes some improvements have been achieved in conjunction with the ABI. These include the code of practice on renewal notifications in which EL policyholders should receive at least 21 days' notice of their renewal terms, and initiatives that aim to ensure EL premiums reflect good health and safety practices.

BIBA is also submitting a presentation to the Department of Transport's review on uninsured driving, conducted by Professor David Greenaway. The presentation will include research into the causes and effects of uninsured driving and proposals to address the problem.

Most of all, Galbraith is looking forward to this year's BIBA conference, where he will have his first opportunity to address members in one room.

The event is at the Scottish Exhibition and Conference Centre, Glasgow, between 19 and 21 May. Themed Facing the Future - Looking Forward with Confidence, it aims to provide all the tools necessary to take brokers through the transition period to FSA regulation in January 2005 and beyond.

Featured speakers

The conference programme includes inspirational speakers and a range of focused seminar sessions on industry-related topics. The opening speaker, economist, analyst and author, David Bodanis, will open with a presentation titled The Future of Risk. Delegates will also hear from Rageh Omaar, the BBC reporter who became a household name reporting on life inside Saddam's Iraq. Tracy Edwards, who led the first-ever female-only crew in the Whitbread Round the World Race to win two legs, will also give a speech.

The seminar sessions aim to explore the various choices open to brokers, including joining a network, outsourcing and selling-up. Brokers will also hear about compliance from companies in the life sector as well the latest updates from the FSA. The latest products and services will be on display in the exhibition hall.

Galbraith says BIBA has received huge support for the event, which promises to be the organisation's biggest yet. Some 13 companies have already pledged their support, including the principal sponsors Axa, Groupama, Norwich Union and Royal & Sun Alliance.

Galbraith refused to comment on how long he plans to stay as BIBA CEO, emphasising that he is determined to ensure the organisation can support brokers well into the future. He says: "I am building up a feeling of where I want to take the organisation. The days are flying by and I am fully engrossed in the role.

"I am looking forward to the challenge of developing the broker distribution channel and raising its profile. In addition to what BIBA can do for brokers, I hope we can also benefit the customer. If we get that right we will have a winning formula."