BusinessCare from FirstAssist

In the days when indemnity products formed the sole focus of commercial insurance brokers' offer to their SME customers, there was an understandable hostility when banks and others muscled their way into this territory.

Nowadays the boot

One of the new products that aims at this new field is BusinessCare from health and wellbeing provider FirstAssist, with whom I caught up on their BIBA stand in Manchester earlier this year. "When seeking to establish business relationships with commercial clients, the key for brokers is to provide solutions relative to their role as employers, and that extends beyond just selling insurance," explains sales director James Kenrick.

This is a 24/7 information service on all issues facing SME employers on subjects like law and employment, HR, employment contracts, health issues and tax and VAT issues. "Without help, the SME principal has to do all this himself, but it's a service brokers can provide if they choose to do so. SME intermediaries can sell the BusinessCare product to their clients, but the smarter ones are looking at ways they can provide it at no specific charge.

"If say a broker has 5000 SME clients, then the economies of scale reduce the cost substantially. It means that while concentrating on core insurance provision and risk management, an intermediary can take credit for provision of non-insurance problem solutions."

But is it feasible for brokers to give away such a product, I asked? Can brokers recover their outlay?

"Well, at the price we are talking about, it would not take long to offset the cost against improved retention and growth. The commercial broker's problem is that someone, somewhere will always come along and try to tempt the client away just by saying they can provide something cheaper. It's only by adding value of this kind that brokers can take that threat on the chin, and present a strong case to the client."

But as mentioned at the outset, there are others with the same idea. The banks are certainly doing it - some of them already offer BusinessCare. "It's a means for the banks to get business away from the high street broker, which of course is nothing new," says Mr Kenrick. "That's something they have always attempted to do, but the broker who adopts the added value stance finds that is the best way to make sure competitors keep their hands off his book."

He adds that brokers are turning into business managers, rather than being just brokers. "Brokers have got to get out there with solutions - just selling insurance is no longer enough. You've got to ask SMEs about what keeps them awake at night. Also, where they want their business to be in say three years time."