The network battle rages on

Networks will continue to slog it out in 2013, if our story this morning on the rumblings between Cobra Network and Giles’s new network offering Compass is anything to go by.

Until recently, Cobra boss Steve Burrows had remained quiet on his plans for the network. But during his period of silence speculation swirled around the market that his members were being target by rivals, including Compass Broker Partnerships (CBS), which is headed by former Cobra Network’s managing director John Lincoln.

Speaking to Insurance Times this week, he said that losing three members - Bournemouth Insurance Group, Headley insurance Services and LBS Commercial insurance Brokers - to CBS was no big deal. He admitted that the Giles network had probably spoken with up to 90% of Cobra’s membership in recent months, but the majority had remained loyal.

Aiming a shot at his rival, he then said that 13 members of the Giles-owned Westinsure alliance had enquired about joining Cobra. But this was denied by Westinsure boss Norrie Erwin.

The conflict between Cobra and Giles is typical of the fierce battle between networks to grow their membership.

This is even greater after the intense pressure under which networks came last year. This included insurers putting pressure on commissions and overiders, demonstrated by Aviva pulling out of Broker Network, together with the continuing soft market and economic downturn suppress growth in the SME market.

But networks appetite for new broker members has not been weakened by these challenges.

Other rival networks, such as Bluefin’s BPS and Jelf’s Purple Partnership, will be watching the tug-of-war between Cobra and Giles very closely, just in case they take their eyes of the ball.