Broker Brands
30 October 2008
Any successful broker knows a successful business is built on trust - so is it worth risking that relationship with the customer by re-branding?
Call this an old-fashioned view, but wouldn't most brokers rather be on the golf course with clients to boost business, rather than spending money on the ambiguous concept of branding? Wikipedia defines a brand as referring to the "descriptive verbal attributes and concrete symbols such as a name, logo, slogan, and design scheme that convey the essence of a company, product or service".
So is there a brand that encapsulates the essence of broking? Arguably not. The AA has tried to convey the concept to consumers and no doubt nationals such as Marsh and Aon appear as the height of professionalism. But there is no real stand-out broker brand in the UK. More to the point, does there need to be?
Most brokers are no-nonsense types who would prefer to invest in areas such as acquisitions, people and decent offices than fancy names and logos. Which is why a few eyebrows were raised when Axa announced it was rebranding its broking and independent financial adviser businesses under the single Bluefin brand.
A fishy tale
One insurance public relations sage - who wishes to remain anonymous - comments: "I don't know why they would do this to sound like either a tin of tuna or a shark; it's odd. They already have strong brands and should either leave them alone or make more use of the Axa name, which at least has recognition." No one was available from Axa to discuss this issue but do others believe brokers are missing a trick by not focusing more on brand awareness? Is there more to this discipline than design fripperies and monikers?
No doubt some brokers could do more in this area - and they don't necessarily need to call in the big name brand specialists. Experts already exist who understand brokers and branding. Clare Ryder, former head of marketing for insurer MMA, set up consultancy Salient Solutions nearly four years ago and advises a range of broker clients. She says brokers seek advice for different reasons but particularly following an acquisition and believes an outside view can add clarity.
"There are brokers who are in a state of flux but they must be absolutely clear on what they want to achieve. Who are they trying to target? Is work on their brand going to win them new business? If there are not going to be tangible benefits, then investment in this area is not worth it," she says. However, Ms Ryder emphasises that consolidators do need to think about their brand as well as the next deal. "When a broker starts making acquisitions and talking to banks and venture capitalists, they need a presence. The right brand can help a broker punch above its weight."
David Saul, director with internet consultancy Fusion, agrees brokers must be clear at the outset about what they want from their businesses. "Do they want to be a Ford and operate multiple brands or a German motor manufacturer like Mercedes, focusing on one overall name? If they have a successful niche product, this could well be where the emphasis should lie. We would also advise brokers to make sure they have an excellent website and that the look and feel of this is aligned to the rest of the business."
Expert advice
So, should a broker bring in an expert to help with its brand? Most agree consultants and agencies have a place but counsel against excessive spending. Simon Hayes, CEO of insurance sector branding agency Effective Image, says a broker may be tempted to rebrand an acquired business but warns this may be a mistake. "Clients often feel a strong affinity with the firms they do business with and this process needs to be handled with care. It's better to retain the old firm's name or part of it with joint branding, at least in the beginning." He adds: "Over time clients will grow more comfortable with a new firm. And if there is good communication of the takeover, merger benefits and good client service, the acquiring firm's brand should be able to take over."
However, he believes brokers who think they can do it all themselves are missing out. "Old school brokers still think they can build a successful business based on relationships alone but they are missing out on big opportunities. Forward-thinking brokers, often the next generation of leaders, understand that building a powerful brand is fundamental to their success; it will attract top talent and help them to win new business, as people want to work for and with successful companies that are going places."
Mr Hayes says in the business-to-business market, a brand can be established relatively quickly, given the right circumstances. "Look at what Oxygen has done," he comments. "But, then again, it did have Nigel Barton as CEO who is a one-man-brand in the London market - plus a lot of funding."
Meanwhile, he says in personal lines this is virtually impossible. "Most companies do not have the required funding to reach a wide target audience as start-ups."
The arrival of aggregators has also posed new opportunities and challenges to the broker market - some intermediaries can now win business with little if any brand presence purely through being on one or more of these sites. Yet Mr Saul believes this whole segment may need to refocus its branding efforts. "There are too many aggregators. You have people wrongly going to a website called 'I'mconfused.com' because they think that's the name and I believe we'll see a shake-out as sites seek to achieve more differentiation."
Brands you can trust
Despite this, Matthew Donaldson, group director at BGL Group, says: "Brands play an important role within the aggregator market. Research shows that almost 50% of people on price comparison sites don't buy the cheapest price. The success of our commercial partners through Junction - including the Post Office, Marks and Spencer and Auto Trader - on comparison sites shows consumers are prepared to buy from a trusted brand, irrespective of whether they have a traditional presence in insurance."
Broker Moorhouse has relatively quickly built a name as a commercial provider - and won awards for its business. Chairman, Lyndon Wood, argues: "You build a brand through trading over time. Joe Public may be aware of direct insurers' brands but it doesn't make sense to me to spend a lot if you are commercial broker. A broker could spend £1m on TV advertising but it may well not work. It is better to focus on service and running the business well. You can't do this overnight. I would also question whether consolidators are right to take away the well-established names of broking firms. They can destroy a brand - I think it's criminal."
Meanwhile, Mr Wood is poised to announce his first signings to a new venture - Moorhouse Brands - that will allow high street names to offer commercial insurance. His company will provide the servicing. "Arrangements like this are well-known in personal lines but for brands wanting to offer commercial insurance products there are few comprehensive packages on offer. So there is great potential for firms with a recognisable name to maximise the value of their brand by offering a range of commercial insurance products to their SME customers."
Paul Upton, chief underwriting officer of Evolution Underwriting, who works with many intermediaries believes costly re-branding exercises are a waste of time and money. "A brand is a touchstone but for a broker to start spending vast amounts of cash on this area is totally irrelevant. They need to present well in front of clients and look professional. But, generally speaking, awareness of even the biggest broking brands is low, so a name alone is not going to mean winning big deals. It's clear from the fact the market is so competitive that customers - both personal and commercial - are prepared to switch brands."
His advice to brokers is to focus on providing exceptional service, retain well-established names and look at a range of sales initiatives, such as telemarketing to grow the business. From an insurer's perspective, Steve Albutt, sales and distribution manager for Allianz Commercial, comments: "In personal lines there are some strong broking brands - Saga for example, springs to mind. But in commercial the emphasis is on professional advice and it's a different approach. In both cases, however, brokers should think primarily about what their customers need when building their brand."
WHAT'S IN A NAME?
Some UK brokers look to eliminate an acquired firm's name quickly and seek to impose their culture and brand values. Others plan to do this over time, while some keep their interference minimal. Mark Huxley is partner with marketing and design agency Lamb. He comments: "If a company has acquired the brand of another organisation, how the brand will continue to be portrayed must sit at the top of the company's thinking - not somewhere down the list, as is too often the case. Sadly there cannot be any hard or fast rules about whether a company should or should not retain the existing brand, merge it with their own or lose it all together."
He says the key considerations should be:
- Why is it we bought this business?
- What made it previously attractive to its customers?
- If it was failing, will we be doing it a favour by losing the name?
- What do we really want to do with the business now?
- Will the existing brand and associated image be of benefit or a barrier to it?
Changing a name for the sake of it can clearly be an error. Although Aon means 'one' in Gaelic, Simon Hayes, CEO at Effective Image, says it will be interesting to see if the broker changes the name of its recent acquisition Benfield, saying there is huge brand equity there. Some companies buy expensive names - but brokers like to do it themselves. Lyndon Wood, chairman at Moorhouse, says he came up with the broker's name and the firm's tagline, 'Insurance to smile for' himself.
Oxygen recently bought Lloyd's broker Robertson Taylor, a music and live events specialist. "We have no plans to change the name," says CEO Nigel Barton. "It is like a flag and you change it at your peril." He adds he came up with the Oxygen name while in Starbucks. "I was working in my previous role on something called Project Oxygen and took the name with me."
BUILDING A NEW BROKER BRAND: IT CAN BE DONE
Barbon Insurance Group, which launched earlier this year, is a brand new name for a company now backed by three banks. Formerly it was Erinaceous Insurance Services - in itself a successful business but part of the eponymous failed property services company.
Steve Brindley, sales and marketing director, explains that Barbon will be the overall group name, but below this will sit a number of individual brands including Deacon, Truck Insure, Farr, Home Let, Letsure, Keelan Westall, Cadogan Keelan Westall, Cadogan Hanover Park, SAIF Insure, Plastech, Performance Media and Care Assured.
"These are established and, now we have new backers, our focus will be to develop these further - you do need to refresh brands over time."
He says the Barbon name came free - thought up by chairman, Leslie Goodman. It derives from Dr Nicholas Barbon who is credited with being the 'father of fire insurance' after introducing such financial protection for buildings following the Great Fire of London. He was also one of the major re-builders of the city, developing large parts of London for both commercial and residential use.
Mr Brindley says that while no overt campaigns have taken place, there has been regular communication about the company's strategy. "We're recruiting and I've had numerous letters and emails from those who have just heard about us, and want to join - so we must be getting things right. I think it was right to go for a new overall brand; this industry needs a breath of fresh air."
Nigel Barton, pictured, Oxygen's CEO, says his firm will be undergoing a subtle rebranding exercise in the coming weeks. "We won't be changing the name or doing anything too radical, but it is appropriate as we move on to the next level." The business was founded in 2004 and quickly sprung to prominence. "Some are surprised to see us doing around £100m worth of business a year and are starting to recognise us."
He believes heavy advertising is not essential. "There are a lot of dull insurance brands out there; you don't have to do that much to stand out. We are going to refresh our image and website, more to show we have grown up. You need a balance between being a bit more interesting but still professional and with no fluff."
Source: Post Magazine