Brokering on the detail pays Murphy dividends
It might be a quaint idea of service, but it has won insurance brokers a national honour for growth, writes Stephen Houston.
Murphy Insurance does not get involved in pitching for new business on a cheapest- price- wins basis.
And the Ayr firm’s approach of growing turnover by recommendations has proven to be a winner.
It trounced more than 300 other independent UK network brokers to the Growth Strategy of the Year award at a ceremony in London.
Directors Tom Yorke, 46, and John McQuaid, 44, were also shortlisted for Innovation of the Year.
Dad- of- two Tom, who lives in Barassie, revealed most brokers chasing any new business fail in nine out of ten quotes.
He said: “Our conversion rate is very high as we get the right policy for the right firm.
“Too many brokers offer on price alone without going through the small print.
“There is no point offering insurance if you don’t offer the correct specification.
“When it comes to claims companies can often be caught out as their broker has not read the small print.
“Insurance companies can refuse to pay out if you fail to meet contract obligations such as having an electricity certificate.
“Usually the broker gets the blame but it is more likely the customers has not read the detail.”
They scooped the award for their business model which is firmly a “start from scratch” on every quote they do rather than a quick cut and paste policy.
Tom and John are celebrating a year as owners of the Alloway Place limited firm, having bought out company founder Brian Murphy from his partnership.
It was in 1977 that Brian J Murphy Insurance & Financial Services was formed in Ayr.
Tom reckons they still are “analogue guys in a digital world” who take pride in going through the small print.
He reckons about 90 per cent of his pitches for new work are successful, compared to about two in ten for firms who chase everything.
Tom said: “It takes time to prepare quotes so we don’t want to be wasting it.
“I think the judges must have liked our approach.”
The firm offers a broad range of commercial insurance and will take its staff count to six next month.