Insurer aiming to double in size by 2015

AN insurance firm which specialises in providing cover for Britain’s rural firms is on course to double in size by 2015, it was revealed yesterday.

Harrogate-based Rural Insurance is increasing its market share after forging ties with dozens of brokers over the last year.

In the last financial year, Rural Insurance’s premium income generated – which is known as Gross Written Premium (GWP) – was £23m, When Simon Stevens, the firm’s managing director, arrived in March 2011, the GWP figure was £19.3m.

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Mr Stevens said Rural Insurance had grown by re-establishing trust with its brokers and increasing the size of its distribution base.

The company is now transacting with 180 brokers, compared with 85 when Mr Stevens joined.

Mr Stevens said yesterday: “We have built a brand new sales team as part of this strategy. We have gone out and educated the non-specialist brokers about our products.”

The firm, which employs 41 staff, has a “strong motor side to the business”, Mr Stevens said.

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He added: “In general, the risk profile of rural drivers is much more secure.

“A lot of clients in rural areas are looking at diversifying and finding other income lines. They are moving into areas such as bed and breakfast, and corporate entertainment, including activities such as archery.

“Until the bad weather arrived, many clients were feeling more optimistic. Over the last month, things have changed. Those working in arable farming have been concerned about the effect on their crop yields.” Mr Stevens said other clients were worried their animals might become ill because of the heavy rain.

He added: “We plan to achieve 17 to 20 per cent year on year growth, as part of our three-year plan.”

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Mr Stevens said that, despite NFU’s market dominance, there was still room for specialists to thrive.

“Our aim was to double the size of Rural by 2015 and become a top three player in the market segments we compete in,’’ he said.

“These results illustrate that we remain firmly on course to achieve our objectives.”

Mr Stevens plans to introduce an improved equine product, as well as providing extra cover against the effects of environmental pollution by farmers.

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He added: “We’ve been very pleased with the early reaction to our suite of renewable energy products, which we write in partnership with HSB, and we continue to shape this product – for solar panels and wind turbines – in line with broker feedback.”

Mr Stevens also plans to introduce broker schemes with a focus on smallholders.

Further work is also being carried out to establish Rural’s brand in the south of England.

“We have already grown our headcount by 10 per cent in Harrogate to cope with growth, and now we want to increase the number of brokers we trade regularly with to 200 in the next few months,’’ Mr Stevens said. “We are also talking to existing partners, such as Broker Network and Coversure, on how their members can win additional agricultural business.

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“The agricultural insurance market is evolving fast – there is growing interest in renewable energy insurance products. We are able to adapt and flex to anticipate those changes.”