SEPTEMBER 2005
ARTICLE IN INSURANCE AGE AWARDS 2005 MAGAZINE

High Net Worth Initiative of the Year

As the wealth of the country increases, the high net worth sector grows, with many new policies taken by those who would not normally have considered it. Stackhouse Poland firmly grasped this opportunity.

Stackhouse Poland saw the opportunity that high net worth (HNW) presented and impressed the judges with its ‘excellent’ initiative to tap a rich vein of untouched HNW clients.

Following a management buy-in in November 2001 by three HNW professionals, the specialist private client and corporate insurance broker formed a strategic partnership with wealth management financial services company, St. James’s Place (SJP).

This partnership opened up a significant distribution channel for the HNW market, through SJP’s 400,000-strong client base.

Stackhouse Poland has been marketing its HNW products to SJP since 2002, but 2004 was the first year in which the broker established development staff in the field.

A clear marketing plan was set up, whereby a regional relationship manager (RM) field force dealt with referrals at a local level and visited clients in their homes.

The success of this has meant the number of RMs increasing by half, from four in 2004 to six in 2005, which complement the bespoke and specialist client manager teams for each HNW client.

A personal touch has been key to Stackhouse Poland’s success, which is reflected in the RM visits made to clients with premiums in excess of £750 to discuss ‘issues’ in their cover.

Such ‘issues’ can include under-insurance, and during the visit a thorough review of the client’s cover is made to determine whether it includes all the key assets.

The RM can also make a detailed inventory assessment of ‘general contents’ with the client using SPL’s own designated inventory spreadsheet, and can advise on the best course of action, with a valuer appointed to assess the items if needed.

This can be essential in protecting clients, because most who are visited are at least 30% underinsured, and once the dangers of this are highlighted and explained, they are keen to work to rectify it.

One key achievement the broker is proud of is that 80% of its new clients are also new to the HNW specialist insurance market, having transferred from ‘off the shelf’ policies and direct writers.

In terms of money, the initiative has generated £1.65m of premium income, with £331,000 of new net retained brokerage.

In addition, Stackhouse Poland has seen major growth in its accounts with the key players in the HNW market.

After such an impressive couple of years, the only way is up for Stackhouse Poland.

The brokerage says it aims to double the size of its HNW account during 2005 using additional resource and marketing techniques to achieve maximum market penetration while retaining its personal approach. With its HNW achievements so far, these seem modest and eminently achievable goals for the ambitious broker.

ENDS