Towergate faces challenge in winning over network members if its succeeds in its bid to buy Cobra
Cobra Network members have voiced their concerns over a potential acquisition by Towergate, which is seen by some members as a competitor.
Mark O’Connell, managing director of Preston-based The Insurance Broker, said: “Towergate is a competitor to us, rather than offering complementary services. Towergate would have to allay my fears that it would no longer be a competitor to me, which it is at this point in time.”
A spokesman for Romsey-based Savage & Bullock said: “We, as a broker, have come up against Towergate where it has tried to attack our business. So the thought of it owning the network would not be too pleasing.”
Leigh Smart, director at Newmarket-based Yutree, said: “Our position is that we chose to go with Cobra Network and we have only been with them for a short period of time.
“We would prefer the status quo. But we deal with Towergate and would be very happy to continue with them if that is the route they choose to go down.”
Towergate declined to comment.
Despite the concerns, Towergate may point out that it has a track record of integrating brokers. In 2007, the consolidator bought Broker Network even though there was protest from some of its members.
The network members eventually became part of the wider group, and there was no further public protests.
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