The document outlines a vision for creating a collaborative virtual community aimed at transforming the insurance industry by building trust, improving service quality, and enhancing customer perception. It stresses the importance of interdependence among brokers, clients, and insurers to innovate and create better products, while addressing the shortcomings of traditional models that often lead to distrust and dissatisfaction. A strategic approach to changing attitudes towards insurance is proposed, focusing on shared values, continuous learning, and adapting to consumer demands for better service and quality.

1. We consult Leading into the future

2. "Make no small plans for they have no power to stir the soul." Niccolo Machiavelli

3. We : the vision We aim to build a virtual community of like-minded people who are open to multi-layered collaboration and trade as an alternative to the traditional institutional business model and an antidote to the difficult economic climate A vibrant and creative web-enabled community that, through shared knowledge and skills, innovates and generates wealth amongst its contributors and wider community Providing exciting opportunities for training and careers within the community for those willing to embrace the culture of continuous learning Creating a suite of insurance products that promote and reward management of risk; a philosophy of "prevention is better than cure"; Community Social Responsibility (CSR) Provide a business blueprint for today and tomorrow based upon: values; ethics; stability; loyalty; quality; integrity; trust; compliance; transparency; service; value...peace of mind

4. Why change? Historic & current Institution Independence “ Me” Win/lose Greed Price lip service “ relationship” mistrust Future Collaboration Interdependence “ We” Win/win/win Share Value Service Partnership trust

5. The “perception” problem: Customers view insurance as a grudge purchase Do not like/trust insurers Do not trust/respect brokers Individuals Organisations regard time spent [on insurance] as time wasted

6. Why? Customers do not perceive value in products or service (inevitably feel we are trying to “rip them off”: whether cover/cost OR claims) Do not view broking as a real profession Associate insurance with - cost (financial & time) , upset (claims) or, mild inconvenience (at best) View industry as bankers’ poor relations often as flash/brash/pushy/dodgy salespeople

7. Problem: How do brokers increase their income? More new business – activity equals reduced margin Existing business – carry increased premiums or seek out increased commission rates Existing business – upsell/cross-sell add-on services and products Costly: 5/6 times more expensive than increasing income from existing clients Jeopardise client relationship in difficult and competitive times. Short term solution (sustainability?) Unlikely in tough climate and NOT in conjunction with above

8. 3 possible renewal outcomes... Success: Renew & increase income win/lose Abuse of relationship!? (short term or 1 year win) Neutral: Renew same income (real loss) lose/lose Impaired relationship (medium/long term) Negative: Lose business = no income (only costs!) lose/win Damaged relationship (medium/long term) Chances of achieving success <20% (circa 1:6) Handling expenses = min. 2% of premium Renewal retention rate 90% = status quo (at best) : loss

9. 3 possible new business outcomes... Success: Win new income (average 20% comm.) Handling expenses (irrespective of outcome) = min. 5 times renewal (2%) Chances of achieving any success 20% (circa 1:5) Failure rate 80% Negative: No new income (just costs!) Partial success: Win business at reduced income (average 10% comm.) If we assume a monthly target of £10k premium handling costs will be £1k which means that: Success = £1,000 (£2,000 - £1,000) Partial success = NIL (£ 1,000 - £1,000) Mixed success (50/50) = £500 (£ 1,500 - £1,000) Failure = £1,000 loss per month (pressure on renewal book and costs)

10. Issues & Barriers: Brokers Unstinting faith in Institution(s) & Independence The costs in competing (in pursuit of independent [silo] success) Fear of change Lack of vision Belief in your own PR Acceptance of insurer “relationship” pitch Not invested directly in client service (indirectly in improving back office – primarily to improve own margin) Not invested in training (investment in the future) Lack of IT flexibility (costly to change system/products/service to improve the customer experience)

11. Issues & Barriers: Insurers Focus upon market share (not underwriting profit) Drive toward reducing costs and adding distribution Commoditise products (compromise the integrity) Outsource or offshore client/broker services Go direct (compete with broker channel) Integrate acquisitions and/or legacy IT systems Model based upon Quantity & Price (not quality & value) Purveyors of prescriptive “solutions” Transactional (inspite of relationship “smokescreen”) “ investing” r.o.c. in Unsustainable commissions Unsustainable rates… … with the sole aim of minimising opportunities for competing insurers to capture significant market share ahead of a hardening market

12. Outcome : React to market conditions - Keep on doing what you know (with minimal strategic consideration or consideration for long term) just try to do more of it! Strive to reduce handling costs (without reducing client service) Ignore own, staff and client concerns about service and competition from insurers (“usual suspects”) in return for increased (if unsustainable) commission rates Content to look on scornfully at “aggressive” competitors. Complain about their sales culture and relentless pursuit of income that treats clients merely as a means to meet their own financial targets

13. What needs to change? The customers’ perception of our industry!!! But to tackle this do we actually need to admit that it is the REALITY of our industry that needs to change? Better organisations – better products – better service – better…

14. Consider this This is a quotation about professionals from a book by Clay Shirky: “ It is easier to understand that you face competition than obsolescence ” Here Comes Everybody “ How change happens when people come together” Clay Shirky

15. status quo For as long as we are “content” to accept that we CAN’T succeed with such a huge task on our own and aren’t prepared to invest in improving the overall customer experience we MAY survive but only as reluctant, unhappy, “bit players” in a landscape fashioned by competitors and insurers whose first responsibility is to their own profitability

16. How do we change? By not adapting an attitude of “if you can’t beat ‘em..” By embedding values, service & relationship in the corporate culture By collaborating with (a problem shared) rather than competing against (an expense shared) each other By pooling resources economies of scale: training, technology, By engaging with, listening to, understanding and supporting our communities on a variety of levels By promoting & aiding innovation By investing in and planning for OUR futures

17. &quot;It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.&quot; Charles Darwin

18. Succeeding with a Strategy… Successful Strategy Effective Implementation Source: Contemporary Strategy Analysis, R Grant 1998 Simple, Consistent & Long-Term Objectives Profound Understanding of the Competitive Market Objective Appraisal of The Organisation’s Resources

19. Client Satisfaction Improvement Plan IMPROVE CLIENT SATISFACTION Improve product quality Offer more competitive prices Improve client service Create own product(s)/brand Negotiate additional cover options Reward loyalty & profitability Increase (and use) knowledge of chosen markets Consolidate accounts and focus Development (E.O.S.) Implement results-oriented training & motivation Ensure consistency of communication & administration Maintain agreed Service Standards Promote team culture Add “support options” e.g. Internet, Claims service

20. Simply Insurance & We Network : Company Goals and Objectives Negotiate and distribute a suite of market leading commercial insurance policies designed to provide peace of mind to clients, profit and unprecedented renewal retention rates to brokers and insurers Create a brand built upon core product features and synonymous with quality Work closely with insurers to jointly identify target trade and/or market sectors Utilise bespoke technology with embedded compliance features and streamlined administration routines to provide an exemplary service to clients and insurers alike Create the platform for multi channel marketing, distribution and handling Develop the distribution model to build a broking and distribution business with retail, network and wholesale capabilities

21. Economic Background: Changing consumer attitudes UK consumers’ have developed a more “ sophisticated palate ” and consistently demand better service, choice and value. Irrespective of whether you are part of this movement or not the impact is apparent: Increasing demand for organically grown/hand-reared/ethically sourced produce Concerns over “GM crops” Government action to tackle a variety of health issues Celebrities promoting healthier eating habits Support for local and/or specialist traders, etc. All of which indicate an increasing level of dissatisfaction with what, during the 80’s and 90’s, became the accepted norm… … a philosophy that too often sacrificed quality for convenience! The growing numbers of people who endorse the VALUES that sit behind these types of initiatives feel, if not “disgust”, then a deep and understandable distrust of major UK & Global institutions. Their greed led them to abandon the kind of corporate governance that they sought in others and, therefore, one would assume employed themselves!? Now they have left the more prudent amongst us to pick up their bills!!! Generation G: “Giving is the new taking…sharing is the new giving”!!!

22. Product Development: Features & Benefits Client “Pain Points” Benefits Premium increases Policies designed to manage worst impact of fluctuating market conditions Ability to budget Fixed insurer rating Service Telephone and electronic service for advice/quotes/adjustments/renewal Cover Market leading commercial “All Risks” Accessibility to records Access to own client cover summary Risk Management costs Rebates reward good claims record Insurer continuity Insurer provides a share of the profits as renewal discount Time cost No need to seek annual quotes Premium payment cost 0% or <5% direct debit facility Business Continuity Plan Free planning assistance Claims Dedicated loss adjuster, claims Management and tracking

23. Product Qualifying criteria (p = personal; c = commercial) Exact parameters to be negotiated for individual contracts but, broadly, subject to acceptable: Trade c claims experience and/or, Acceptable post loss steps to prevent a recurrence p/c Sound understanding of own business (refer Product features) c H&S compliant c Current Business Continuity plan IT/web enabled c Appropriate intruder and fire protections p/c

24. Simply : Product components

25. We community Web Alterations Client enquiries. MTA’s: incoming instructions and outgoing documents Web Newspage Newsletters, promotions, legislative and trade updates Web Document Repository Client access to insurer & broker doc’s or accounts Web Marketplace Profile Means for businesses to promote products/services Web Services External services in addition to insurance e.g. legal (HR), Risk Management Web Accounts Current invoices & balance. Annual spend year to date. Direct debits & BACS Web Claims Intimations, supplementary info. updates & settlement amounts Web option Client Development of client: Website; Intranet; Extranet Web option Professional Advisers Access for existing advisers to client info. ALSO opp. for adviser to create own site Innovative Client Solutions

26. It is about each of us being 100% comfortable in our given role. Learning and performing that role to the best of our ability. Relying upon and being relied upon. Communicating. Working as part of a team and an interdependent organisation with a common goal. Contributing to the successes and sharing in the rewards. INTERDEPENDENCE: “a reciprocal relation between interdependent entities (objects or individuals or groups)” Development (Heart) Client Services (Stomach) Broking (Brain) Operational ethos

27. We have the answers Introducers IT partners Clients Marketplace Affinity Groups Affiliates We consult We systems We network We Insure We community We train We counsel We create Knowledge pool Web marketing Insurers Collaborations Social Media We consult We systems We network We Insure We community We train We counsel We create Knowledge pool Web marketing Insurers Collaborations Social Media

28. We respond invest serve reward guide innovate protect partner market represent plan collaborate budget connect create brand design train believe sponsor manage promote insure research develop trade web 2.0 fix care contribute facilitate network communicate interpret support engage design listen organise consult arrange donate recruit help fund organise share endorse inspire present lead What do We do?

29. Enterprise 2.0

30. The Team We would be (very) surprised if you didn’t want to know more and to find out how you can participate! David G Wilson Strategic Development Director, WH & R McCartney Ltd Creator of the “ We community ” and “ Simply Insurance ” vision Email: davidmillbrae@hotmail.com (m) 07919 917150 Derek Smith Director, Red Mosquito Ltd Web, network and internet Pascal Holt Managing Director, Brandsavvy Ltd Brand and creative specialist and experienced collaborator