Many brokers, dealing with complex risks and technical placements, believe such risks are not compatible with an appointed representative network.

Many view AR networks as a wrapper of necessary services for start-up brokers placing easier business.  Whilst they recognise that these services are useful, typically including compliance, accounting and money handling and administration, they do not believe there is the capability to place more complex risks into the market.

Why most appointed representative networks dislike complex risks

In many instances, they are right.  The majority of AR networks shy away from technical placement and do not encourage brokers to venture down this path.  Appointed representative networks tend to place a cap on the size of risk that can be placed by an AR.

In addition, some are earning their money at the insurer end, skimming off commission payments in return for placing risks with a pre-agreed ‘panel’ of insurers.  This is probably not conducive to the placement of more technical risks, for which a distinct market may need to be found.

Why the Gauntlet appointed representative network embraces technical placement

But this is not the situation within the Gauntlet AR Network. Our broking expertise, as a commercial broker in our own right, with over 30 years’ heritage in the market, means that the broking of complex risks is second-nature to our broking team.

We have all the insurer contacts required for those wishing to place more technical business into the market and can find a home for the vast majority, if not all, risks.  By virtue of being members of Brokerbility, we can call on additional support there, should we need to find a very niche solution.

Case study of a complex risk handled by the AR network

To demonstrate all of these points, we have a recent testimonial for our broking team, specifically our Group Broking Manager, Tom Hope, and our Commercial Handler and Broker, Jorr Jaiteh.

This is from our appointed representative, Paul Howley, owner of Gauntlet Select, and it reads, “I want to extend my sincere thanks to Tom and Jorr, for their excellent support on a recent renewal for a complex and sizeable case within the manufacturing sector, which required a strategic and coordinated approach.

“Tom did a fantastic job opening discussions with a number of insurers, with a clear focus on streamlining the client’s insurance portfolio. His market insight and negotiation skills were instrumental in identifying strong, alternative options.  Meanwhile, Jorr’s efficient administrative support, in obtaining renewal terms and coordinating quotes, ensured the process ran smoothly behind the scenes.

“Thanks to the groundwork Tom and Jorr laid, I was able to use the alternative terms secured, to leverage the incumbent insurers into quoting for additional product lines.  The result was a simplified programme and an overall improved outcome for the client. 

“Great teamwork all round and a brilliant example of how collaboration delivers real value for our clients.”

 Another real-life example of complex risk placement for an AR

This is not the only example of where the Gauntlet AR Network’s in-house broking support can assist those with complex and highly technical risks to place.  Another case related to a highly distressed risk, where the client had been handed health and safety fines and experienced major transport accidents.  The financials, which demonstrated a scaling back following the boom-time associated with the pandemic in the haulage sector, had caused a major insurer to pull out, refusing to offer terms at renewal.

The solution for our appointed representatives

Here, creating a structured presentation and argument, which highlighted significant improvements made by the client and mitigating circumstances for the financial situation, was key.  Gauntlet was able to help the appointed representative take this complex risk to market and find an insurer home for it.  This was a crucial lifeline for the client but also helped bolster the relationship between appointed representative and client, by exceeding the client’s expectations.

Complex risks and appointed representative broking support

This sort of dedicated broking support is available to any appointed representative who becomes part of the Gauntlet Appointed Representative Network. We do not shy away from, or discourage, complex cases and will support an AR who wants to try to assist a client with such risks to cover.

So the next time someone tells you that appointed representative networks and complex risks and technical placements do not mix, thing again.  Appointed representatives, who work with Gauntlet, know that they are not held back from handling such business.  They recognise that they can find a market for technical risks, thanks to Gauntlet’s extensive market reach.  They also appreciate that they can gain support from the talented and dedicated in-house broking team.

Summing-up our appointed representative network’s view of complex risks

This means that anyone wanting to start their own insurance business can do so through the Gauntlet AR Network, no matter how complex the risks they are used to handling, day to day, and on which they have built their broking reputation.

To find out more about how Gauntlet can help you with technical placements, should you become an appointed representative (AR), please contact Roger Gaunt on RogerGaunt@GauntletGroup.com