SSP today announces it will be launching a new business, Keychoice Underwriting, to provide commercial lines products to Keychoice Network’s 900 plus members. The new operation is being created as a key initiative to extend SSP’s insurance distribution model and Keychoice’s range of products and services. Jonathan Davey, who joined SSP in August 2008, will head-up the new business.
SSP, whose Keychoice Network members currently control in excess of £2bn of commercial lines business, representing one of the largest distribution channels in the UK insurance market, has identified a substantial business opportunity to add value to its existing broker and insurer relationships. By developing its Keychoice proposition to better support distribution in this channel, SSP can drive out costs, deliver efficiencies and improve service for all of its Keychoice members and insurer partners. Keychoice will extend its current insurance product range, technology support and distribution capability to become a provider of its own SME commercial products through an innovative underwriting agency.
Keychoice Underwriting will be a full-service underwriting agency providing pricing, underwriting, policy servicing and claims handling on behalf of insurers and giving Keychoice Network members access to experienced underwriters and exclusive products. Among the lines it plans to offer are commercial combined, package, property owners and motor trade and fleet, with others dependent upon broker demand.
The innovative, profit focused business model offers insurers a guaranteed return on their investment as Keychoice Underwriting will take less commission up front and align their revenue to underwriting profits.
Laurence Walker, chief executive of SSP, said: "Having worked with brokers and insurers for over 25 years, our experience has shown that regional brokers provide high quality service, have strong customer loyalty and deliver insurers profitable business, year in, year out. With our established membership base, expertise in technology and Jonathan’s track record, I am confident that this will be a great success. Establishing an underwriting agency emphasises our plans to develop further within the industry, beyond the provision of technology solutions.”
Jonathan Davey, who is heading-up Keychoice Underwriting, was the founder and chief executive of Primary Broker Services, which he developed into one of the UK’s most respected underwriting companies with almost £100m GWP.
Commenting on the new venture Mr Davey said: "This is a fantastic opportunity for me to be involved in the creation of a new business with a unique business model. We have the huge advantage of being able to build on the firm foundations of the existing Keychoice Network which has over 900 members. Keychoice has been working closely with its members and insurer partners since 1994 to create long-term, mutually beneficial propositions and now controls in excess of £3bn GWP. Underwriting commercial lines business is a natural next step and as we will have no legacies we will be able to ensure that we deliver what our members want – well priced and designed insurance products, combined with access to experienced underwriters and good service.”
He continues, “We have looked at a number of business models to support our broker and insurer partners and are confident that we have a sound business proposition that will allow us to create a sustainable, long-term business that will offer brokers a strong partner and insurers a guaranteed return on investment.”
During the remainder of 2009 Davey will be working on recruiting some of the UK’s leading insurance professionals and finalising the Keychoice Underwriting insurer panel in order to start trading in early 2010.
SSP anticipates that the new venture will be authorised by the FSA later this year.
