Who's in the club?

Options for brokers are endless. They can join a network or an alliance if they don’t fancy selling to a consolidator and get the benefits and services they need to help them grow.

But Norwich Union’s Club 110 is the latest model that appears to have shaken up the broker market. In many ways it is a broker network in its own right, offering the similar services and support, but with exclusive deals between brokers and Norwich Union.

Launched in January it has seen 236 brokers sign up in its first year. With a GWP totalling £400m it is now competing with the network heavyweights.

In 2009 it has big plans. It will reshuffle its membership, releasing brokers who have not performed to its strict criteria, and bring in some new blood. It will take on board lessons learnt from its first year, many of which were discussed with brokers at a Club 110 conference in Dublin earlier this year. Some may see this as a tough approach, but according to Norwich Union it is in the best interests of its brokers.

“Brokers have said to us don’t just make this a club that has no teeth. We have reflected on that and we are doing what is right and what it does is it gives you good circulation in the club,” said John Kennedy, Norwich Union’s director of business development.

In its membership it claims to have one in two brokers from the mid-market, and says brokers in this sector will become its preferred partners.

“We have seen a truly enhanced performance form this segment. This club is out performing the rest of our [broker] book not just in growth but also in its financial performance,” said Kennedy.

“I think we would be the first to admit that it’s been a fantastic success but in any good club you have got to continue to look at what you have got and you have got to build on what you have got. We are going to be the best broker club in the UK. I think we are close now but we are going to be better. The areas we are going to be better are fundamentally based on feedback from brokers.”

The insurer has fought hard to drive down commissions in recent months and its commitment to Club 110 is evidence that controlled distribution in the broker market will play an important role in achieving that.