Profile: Steve Barrett
WHENEVER the rain falls, thousands of people check their sandbag supplies.
In some communities, “once in a century” floods seem to happen every year.
Advertisement
Hide AdAdvertisement
Hide AdThe changing climate is bringing misery to swathes of Britain. It is also causing soul searching in the insurance industry.
The industry is being forced to ask a fundamental question: Who should foot the bill for the ravages of climate change?
Last year’s torrential rain brought flooding back to places that seemed to have barely dried out following previous downpours.
As a result, larger numbers of people are finding it harder to get flooding insurance.
Advertisement
Hide AdAdvertisement
Hide AdThis fact is giving insurance industry veterans like Steve Barrett, the new MD of Henderson Insurance Brokers, plenty of food for thought.
According to Mr Barrett, the solution may have to lie with central Government.
Last year, the wettest summer on record caused heartache for thousands of householders.
Insurers put the cost of rectifying the damage caused by floods at between £1bn and £1.3bn. Memories are still fresh of the devastating floods of 2007, which have been described as the largest peacetime emergency since the Second World War.
Advertisement
Hide AdAdvertisement
Hide AdAround 40,000 homes were flooded, and the insurance bill and clean up costs were estimated at £3bn. Cities such as Sheffield and Hull suffered terrible damage.
So what’s the solution?
Apart from investing in flood defences, how can vulnerable households and businesses insure themselves? According to Mr Barrett, the development of a flood strategy is essential, because of the changing weather patterns.
He said: “In the longer term, I think all flood cover will be taken over by the Government. You can’t run a business without flood cover. We encounter many businesses who struggle to get insurance to cover themselves against flooding. It’s vital this issue is resolved.”
In his new role, Mr Barrett must ensure that Henderson Insurance Brokers achieves sustainable growth. He’s got the delicate job of matching entrepreneurial drive with fiscal prudence. Mr Barrett, an industry veteran, has been appointed to head up the company’s broking division.
Advertisement
Hide AdAdvertisement
Hide AdHe will sit on the Henderson executive board, and report directly to Joe Henderson, the chief executive.
As a result of Mr Barrett’s appointment, Mr Henderson will spend more time focusing on the company’s other businesses, including Contractsure, Henderson Risk Management, Henderson Employee Benefits, UK Credit Insurance and Henderson Surety. The firm has eight offices, including Yorkshire operations in Leeds, Kirmington and Hull.
Mr Barrett joins Hendersons after a 20-year stint with Aviva, where he had risen to become business manager responsible for Leeds and Newcastle.
“I felt that I had given Aviva all I could and that I needed a change of direction,’’ Mr Barrett said. “I thoroughly enjoyed my time there and left on the best possible terms.”
Advertisement
Hide AdAdvertisement
Hide AdHendersons aims to bridge the gap between small local brokers and multinationals. During his 39-year career, Mr Barrett has seen the insurance industry move from the world of paper to ipads.
The pace of life has accelerated beyond anything that could have been imagined in the early 1970s, when Mr Barrett headed to the bright lights of Leeds.
For a youngster from Beeston, armed with enthusiasm and a collection of A levels, a trip to the heart of Leeds was an adventure.
At the time, smoking was allowed at your desk, and the information super highway was the stuff of science fiction.
Advertisement
Hide AdAdvertisement
Hide Ad“When I left school in 1974 the world was a very different place,” Mr Barrett said. “In those days, all the records were on paper, and the world was less pressurised. You just worked through a pile of papers every day.
“Today, things are more driven by targets and compliance. Everything is done on computer, and you have access to data very quickly.
“I remember writing memos on carbon paper, so the speed of the world has really changed,” he added. “In 1974, if one of your managers walked into the office, you had to stand up and say, ‘Good morning, Sir.’
“Political correctness didn’t exist and people smoked at their desk, which was horrendous for a non-smoker.
Advertisement
Hide AdAdvertisement
Hide Ad“For me, just travelling into Leeds from Beeston was a big thing.”
A time traveller from the 1970s would find it hard to recognise parts of the Leeds skyline today. The explosion in demand for professional services has helped to re-invigorate neglected parts of the city’s core.
“The area in which I’m sitting in now, on Leeds’ waterfront, was derelict,” Mr Barrett recalled. “It wasn’t a place to go after dark.
“It’s been completely transformed.”
His own career mirrored Leeds’ renaissance. After starting out at the Prudential as a motor insurance programming clerk, he steadily moved through the ranks.
Advertisement
Hide AdAdvertisement
Hide Ad“I stayed there until 1992, when Prudential pulled out of General Insurance, so I moved on to General Accident,” he said.
“From the 1990s, there was a greater focus on accountability and delivery of services.
“It was a time when more effective systems were being introduced at Aviva, certainly in my later years there.
“There was a strong focus on corporate responsibility and producing value for shareholders.”
Advertisement
Hide AdAdvertisement
Hide AdInsurance broking is a fiercely competitive, entrepreneurial world. In common with many sectors, it was forced to raise its game after the collapse of Lehman Brothers.
“There has been a big change to the quality of brokers since the financial crisis of 2008,” Mr Barrett said.
“I decided to move to Hendersons because I had worked with Joe (Henderson) for six or seven years.
“I knew the business had a lot of very good people, and fantastic compliance and claims divisions.”
Advertisement
Hide AdAdvertisement
Hide AdFounded by Joe Henderson in 1986, the Henderson Group is now the fifth largest independent insurance broker in the UK, with 330 staff and a £23m turnover.
“They are very good at introducing younger people into the business,” said Mr Barrett.
“Hendersons likes to employ up to half a dozen people a year and start them on apprentice schemes. This is something that I have a great affinity with.
“My job is to put some structure into the business, without affecting the entrepreneurial drive.
Advertisement
Hide AdAdvertisement
Hide Ad“My role is to look at the best practices at the various offices, and bring the very best practice from one location to another.
“The customer is at the core of everything we do,’’ Mr Barrett added.
“It’s all about engaging with the staff and encouraging them to develop, because it is the staff who are our route to the customer.
“Hendersons is one of the more profitable insurance brokers.”
Advertisement
Hide AdAdvertisement
Hide AdSuppliers also have a key role to play in ensuring Hendersons’ clients get the best deal.
“It is important that Hendersons has an effective relationship with our suppliers, to ensure that our customers receive the best possible solution for their insurance programme. The business will succeed by adapting to change,’’ Mr Barrett added.
Over the last four decades, Mr Barrett must have witnessed the fate of many firms who failed to move with the times. He’d determined to ensure Hendersons flourishes during times of economic peace and turmoil.
Steven Barrett Factfile
Name: Steven James Barrett
Title: Managing Director Henderson Insurance Brokers Ltd
Date of birth: May 11, 1956
Education: Cross Flatts Park/ Cockburn High School
Advertisement
Hide AdAdvertisement
Hide AdFirst job: Grandways, on the egg and cheese counter while I was still at school
Favourite holiday location: America
Last book read: The Bald Truth – Keith Senior’s autobiography
Car driven: Ford Galaxy
What is the thing you are most proud of: My family. I have four beautiful daughters and, in the last couple of years, four grandchildren, hence the Galaxy