Broker grouping vows to slow growth.
See also: We felt squeezed. There had to be another way
Brokerbility will halt its rapid expansion when it reaches £500m gross written premium (GWP), according to Stuart Randall, its chief executive.
The group, which consists of 25 brokers that control £450m GWP, is set to add “one or two” new members before the end of the year in an attempt to propel the group to £500m GWP.
However, Randall said the group was approaching its optimum size and would shift its focus to developing “inter-company activity” in the group.
“When we get to £500m, we will concentrate on maximising our current opportunities. We feel that in the current market, despite the credit crunch and all the problems around, there has never been a better time to be an independent broker,” he said.
“This year we have slowed down the number of people we are talking to. We want to slow growth. We are talking to a number of brokers at the moment and if they come on board we would have achieved £500m GWP. But we are not talking to a great number because we know we can achieve the figure without much difficulty.”
Brokerbility appointed Ian Stutz, former Aon director, as managing director in August to assist the development.
Randall said the business would not copy the network model as it would be hard to maintain communications.
“The networks have a huge number of brokers and it is very difficult to communicate with that number of people,” he said.
“With Brokerbility, five groups of five or six brokers are relatively easy to communicate with. To go numerically beyond those figures is starting to push the boundaries of what is reasonable to achieve.”
