Profile - David Fryer: In a risky business, insurer has the experience to go for growth

OVER the last 130 years, Heath Lambert has insured Britons against damage caused by Zeppelin raids and 1,000 other calamities we'd rather not think about.

At a time when many firms are facing new perils caused by the battle for survival, David Fryer is quietly indulging in a spot of empire building.

The passionate Huddersfield Town fan is trying to grow insurance company Heath Lambert's share of the Yorkshire market. He's developing a team that is a mix of youth and experience.

"Last year was a tough one but we moved forward," he said. "One member of staff went to work as a postman but found that he missed our working environment. We brought him back in. He's got 40 years' experience in insurance. That's something you can't buy.

"We've got 18 staff in various disciplines. Overall we've got an average of 30 years' experience."

But who are Heath Lambert? A brief history lesson is in order.

The Heath Company was founded in 1877 by Cuthbert Heath, one of the driving forces behind the development of London's insurance market.

Mr Heath is credited with establishing the market's first burglary policy. He also provided insurance against Zeppelins in the First World War, and devised policies that covered clients against earthquake and hurricane damage.

The Heath Group reached a crossroads in 1986, when Richard Fielding and his partners were invited to cancel their initial public offering (IPO) and do a reverse takeover of Heath.

In 1997, a leveraged buyout by the management was agreed.

But what of the Lambert part of the partnership?

Well, Lambert Fenchurch can trace its roots back to a coal factoring business set up by Francis Devereux Lambert in the mid 19th century, which expanded into shipping and insurance broking.

So, as we make tentative steps towards economic recovery, what sort of insurance-related issues should businesses be worried about?

There is no room for complacency, according to Mr Fryer, and all companies should provide their insurer with a detailed analysis of how they have been affected by the recession. Failure to do so could have terrible consequences.

He added: "It's important that the risk is presented properly. There are a lot of people who trust their insurance broker to do the job properly. I'm not convinced they've got the insurance product and protection that mirrors their exposure. There are lots of issues to do with compliance and new Acts that they may not always be aware of."

For example, companies must be conscious of the danger of falling foul of pollution laws. They could be considered liable even if they haven't intended to cause harm.

"I've been doing insurance broking for about 25 years and (increased) compliance was something that had to happen,'' said Mr Fryer. "Insurance brokers have to do things correctly. That's something we take very seriously.

"We have training programmes in place – we are constantly having to revisit money laundering, for example. I don't think money laundering is a big problem, but as insurance brokers we handle a great deal of money. We have to make sure we are comfortable with where the money is coming from.

"Sectors we cover out of Leeds are real estate, manufacturing, engineering, care homes, retail."

There has been speculation that the Financial Services Authority might be reduced in size or even scrapped if the Conservatives win the General Election. Critics have accused it of being too costly and they have also highlighted how it failed to prevent the financial meltdown of 2008.

Mr Fryer takes a more positive view.

"There had to be a grip on the industry,'' he said. "There had to be a greater element of compliance. I think the FSA has brought us that for the benefits of the clients.

"We need to know that ultimately we are treating customers fairly and have their best interests at heart."

Insurance is never out of fashion, and across Heath Lambert there were between

75 and 100 extra staff hired during 2009, according to

Mr Fryer.

Mr Fryer said: "We're looking to add value and bring experience to the table. We've added two to our team in Leeds.

"It's been a tough year but I think our clients are more optimistic now. We understand the level of constraint that they are operating under.

"I think we could be very big (in Leeds) in five years time. We have got a real niche – we're a regional broker with over 50 years experience in Leeds."

Insurance runs in 41-year-old Mr Fryer's family. He recalled: "I followed my father into insurance, albeit in a slightly different way. He worked in life assurance and it served him well.

"I took that on board and followed him into the industry, carving out my own niche."

Outside work, his efforts are focused on exhausting feats in aid of charity.

"I did a cycle ride from Huddersfield to Southend with Huddersfield Town Football club in support of the Yorkshire Air Ambulance,'' he recalled. Heath Lambert are big supporters of the Prince's Trust

"I've put a proposal to Huddersfield Town to take the challenge a step further and maybe, instead of using pedal power, we use arm power

and look to row to one of the away games.

"One game that was mentioned was Exeter. That's quite a distance. I don't know whether we could manage the tide around the estuaries. We may have to go by canal which is a substantial distance!"

During his 25-year career, there have been three recessions and a huge increase in the complexity of products and legislation. What is the biggest lesson he has learned in his career?

"It's all about being honest. You have to be honest with yourself, honest with your staff, and be honest with your clients,'' he said.

"Insurance isn't a tangible product. It only becomes tangible when a loss occurs, through a fire, a theft or a flood."

Although he hates to see clients in distress, he does feel a sense of professional pride when a policy he arranges proves to have been the right one.

Is there any piece of legislation that could be changed to make things better for all of us?

He believes all drivers should have a tag on their registration plate to prove they are driving with insurance.

The Motor Insurers Bureau (MIB) was set up in 1946 to compensate the victims of uninsured drivers. The fund pays out more than 200m each year.

One in 20 cars on UK roads are driven without proper insurance. The MIB pays out claims from a fund that is contributed to by every motor insurance company. As a result, every driver who has a motor policy is paying between 15 and 30 of their insurance premium to compensate the victims of uninsured drivers.

Mr Fryer said: "I would like to see transparency about insurance cover attached to the vehicle itself.

"Perhaps it could be endorsed on the tax disc, or as is the case in Scandinavian countries, there could be a tag on the registration plate. If we have nothing to hide, we have nothing to fear."

The Zeppelin attacks are long gone, but we will always need measures to protect us from selfish, reckless drivers.

DAVID FRYER

Title: Director of Heath Lambert, Leeds

Date of birth: December 13 1968

Favourite song: Montagues and Capulets – Prokofiev (Huddersfield Town sometimes play it as the teams enter the arena!)

Car driven: BMW

First job: Concessionaire manager at Top Man

Qualifications: Life!

Last book read: It would have been something to relax with, James Patterson or Lee Child

Most proud of: Balancing my commitment to Heath Lambert's philosophy with a working wife and our young son Charlie and baby daughter Jessica.