Local Insurance Broking’s New Golden Age Now’s The Time To Become A Coversure Franchise Holder

It’s official: local insurance broking is experiencing a resurgence. That’s the verdict of Insurance Age whose recent feature, “Return of the Local Broker” highlights what Coversure’s franchise holders already know, that local independent insurance brokers are enjoying a new golden age.

While recent industry consolidation and big brand brokers’ decisions to retreat from the high street in favour of online-only operations caused some to question the longevity of the local broker model, the reality is that local broking isn’t surviving; it’s thriving. At Coversure, we’ve opened several new offices this year, and interest from prospective franchise holders is at an all-time high.

Insurance Age’s article cites several reasons as to why independent insurance brokers are doing so well. These chime perfectly with Coversure’s franchise model and how we can enable brokers’ long-term success.

In this article, we’ll look at some of the drivers behind local insurance broking’s resurgence and why now is the time for experienced brokers to realise their dream of starting their own brokerage.

We hope you will find it of interest and if you’d like to know more about joining the Coversure family, please get in touch. For an initial confidential conversation, please call Anna Martin on 07745 444333 or email the Coversure Franchise Development Team.

SMEs Continued Desire For Personal Service

Insurance broking is all about service and relationships. Customers speak to brokers to benefit from their advice so they can find them the right cover at the right price. When dealing with small and medium-sized enterprises (SMEs) in particular, this takes time, skill and often requires multiple engagements with the client and visits to their businesses. While SMEs value this service, many consolidated brokers cannot offer this exceptional level of customer care. This is leading many SMEs to choose local independent brokers who can make an effort and with whom they can build long-term, trusted relationships. In doing so, it allows local independent brokers the opportunity to service this £8.3bn market.

Brokers’ Desire To Provide Personal Service

When you’ve been running an insurance franchise operation, as we have – Coversure was founded in 1986 – you get to know brokers’ motivations well. Traditionally, these have included those wanting to own their own business, take control of their futures, and serve their customers’ needs. This latter point has become increasingly important, especially for those who’ve seen their service levels curtailed by consolidated firms’ working practices. Having the freedom to talk to or go and see clients as they see fit has sparked a fresh wave of interest in becoming a Coversure franchise holder.

Economic Recovery

While the pandemic hit the UK economy hard, the recovery has been remarkably swift. The latest forecast from the Organisation for Economic Co-Operation and Development (OECD) predicts that the UK’s economy will grow by 7.2% in 2021 – the fastest rate since 1941. While this is good news for local brokers, what’s interesting is the type of business that’s driving this economic boom. SMEs and growth-hungry start-ups are leading the charge and are looking, not just for good value cover, but for the help and advice, which is a local brokers specialty. This charge is reflected by an American Express report from late 2020, which stated that there had been a 69% increase in public sentiment toward local small businesses, with personal service being central to that improvement.

It’s clear that now is a great time to open a brokerage. Within our business, we’ve seen long-established offices such as Coversure Kidderminster achieving unprecedented levels of growth, while new franchises such as Coversure St. Neots have got off to flying starts as customers beat a path to their doors.

The Need For Support

Even in the most benign economic conditions, any new business needs support. This is even more important for new insurance brokerages, especially in the hardening market in which we find ourselves.

Armed with a great business plan, experienced, motivated business owners and plenty of potential customers won’t ensure success if you don’t have access to agencies, compliance support, and a ready source of specialist marketing expertise. The Age report points out that, “What’s hardest for any new start-up is getting the infrastructure they need to support their clients. It’s a difficult marketplace to come into with reduced capacity”.

This is yet another reason why so many ambitious brokers are talking to us about becoming franchise holders. In general, the franchise model enjoys significant levels of success. According to Nat West, 80% of new businesses fail within five years, while 80% of new franchise businesses succeed in the same period.

At Coversure, franchising and success go together. Being part of the Group means office owners enjoy access to various agencies and benefit from excellent business, compliance, back office, and marketing support. This not only gives their business solid foundations but the freedom to do what they do best from the off: serve the needs of their customers.

Now’s The Time To Become A Coversure Franchise Holder

There’s never been a better time to take control of your future in insurance and become a Coversure franchise holder. If you have at least three years’ broking experience, are driven, and are passionate about client service, then we’d like to hear from you.

Coversure’s enjoyed a sustained period of remarkable growth over the past ten years, and we’re now looking for more talented insurance professionals to join us. If that sounds like you, please call Anna Martin on 07833 471393 for an initial confidential conversation or email the Coversure Franchise Development Team.

The Coversure Insurance Team