Members’ 25% growth a “powerful” proof point, says Hedron leader Haggart

Hedron members grew by 25% in the past 12 months, according to analysis by network CEO Chris Haggart.

“The thing that is particularly pleasing for us is that’s not just indexation or rate, that’s genuinely excellent levels of customer retention and new business,” he told Insurance Age.

“It is not distorted by acquisition. It is genuine organic growth that is coming through our partner brokers”

Haggart, pictured, said the network had always set its stall out to be the supportive partner of broker growth.

“As a proof point 25% is incredibly powerful,” he said.

Stable

Haggart, who took over the post at the start of the year, confirmed the business had been “pretty stable” throughout the last 12 months, with member numbers still sitting at “about 200”, influencing around ￡800m of premium.

The size of members ranges from start-ups going through the application process at the Financial Conduct Authority to those with ￡50m of premium, he detailed.

“We have a story to tell irrespective of size, shape and profile.”

Targets

However, Haggart declined to be drawn on where he wants to take the figures in the year ahead or when the ￡1bn barrier might be breached.

“We want to grow the business, make no mistake about that,” he said.

On GWP he stressed: “We don’t pursue a strategy of vanity to simply proclaim we are the biggest network in the UK. We focus on the quality of the businesses that we are bringing into the community.”

He was more forthcoming on raising membership numbers, acknowledging the goal of being net positive in 2024.

“I haven’t set a specific number on it,” Haggart said. “I want to incrementally grow it. If that’s a five-to-ten net new positive position at the end of 2024 I would be happy with that.”

New

Over the past 12 months, around 90% of new sign-ups have opted for the integrated proposition, including elements such as client money, system support and risk and compliance consultancy, Haggart noted: “It points to some of the challenges that exist in the marketplace today and some of the pressures brokers are faced with.”

The business has been on a recruitment drive this year, with additions across marketing, data and analytics, business development, wholesale, systems consultancy and client money taking headcount up from 115 to 135.

Haggart said the service level approach means it has to be well staffed.

“We play our best game when we have that integrated proposition, when brokers are tapping into us for the range of services we can provide,” he said. “That has got a servicing requirement to it. We want to make sure we can continue to deploy that in the right way.”

Start-ups

Under his watch, the “stable” membership has included some departing due to consolidation – such as Rickmansworth-based Christopher Trigg in January, which went to Hedron’s parent company, then known as Global Risk Partners – and some new entrants.

The joiners have been a mix of firms switching from another network and brokers new to the space, he noted.

The latter has included start-ups.

“In the last 12 months we have supported 10 businesses go through the process of becoming directly authorised,” he said.

“A natural output of a particularly buoyant M&A market is you see quite a number of start-up brokers. It is a space we are watching closely.”

ARs

This summer, Acrisure bought appointed representatives network Ten, rebranding it to Eleven. Hedron does not currently have an AR route and Haggart was adamant that it will not be turning into a long-term principal. However, while not making any promises, he did not rule out developments in the sector.

In essence it is interested in businesses with aspirations to move beyond AR status.

“That might mean we need to support them over an entry level of 12–18 months of being an AR, but that is very much with a pathway of becoming directly authorised,” he noted.

“We have all the component parts where I think we could have an effective AR proposition with all of the appropriate governance and control overlap.

“Our thinking is developing on it all the time.”

Digital

Current members have access to a broking desk which in turn has access to 4500 products. The Network insurer panel stretches to around 20 providers, but despite the recent rapprochement between GRP (before the rebrand to Brown & Brown) and Aviva, the insurer is not part of the package.

Digital is a key theme for Haggart. Approximately 50% to 60% of members are on Acturis. As revealed by Insurance Age earlier this week, Hedron has partnered with Broker Insights in a two-pronged push on data for members that over time could lead to the launch of own-branded products to boost the 4500 total even further.

Ownership

GRP bought Marsh’s UK Networks business – made up of Marsh ProBroker, Bluefin Network and Purple Partnership, as well as Marsh Connections, Marsh Labyrinth and Broker2Broker – in May 2021.

With Brown & Brown completing the purchase of GRP in July 2022 the network’s time under private equity ownership was short.

Haggart has seen new owners that are investing to support growth.

“Naturally we have been through an evolution of private equity which is maybe more limiting in terms of the investment opportunity that presents,” he observed.

“We now have much more scope from Brown & Brown to invest in the business in order to grow it.”

US giant Brown & Brown has no networks in the US, but according to Haggart one element is worth considering. The owner’s relationship with US carriers that have limited presence in the UK could be of benefit to Hedron over time if they look to deploy over here.

“We are interested in what that may look like in the coming months and years,” he said.

Europe

The rebrand of GRP to Brown & Brown Europe came alongside Mike Bruce’s remit being expanded.

There is currently no indication of Hedron looking to blaze a trail on the continent.

“We have got ample opportunity in the UK to satisfy our short-term growth aspirations, but we will see what the future holds,” Haggart said.

Insurer service

To help deliver growth for members, Hedron will need to meet the two biggest risks that members are reporting for their businesses: insurer service and recruitment

Haggart stated: “It is not unfair to say that insurers haven’t recovered as quickly as brokers have post-Covid. Insurer service is patchy and needs to improve. There is a real call from our broker partners on us to intervene with that and make it better.”

And while the network cannot create employees in his view there are still steps it can take for the second challenge.

These, he suggested, centred around helping with operational design – namely looking across peer groups to give insight on structure – and the recurring digital push using “technology capability to make the operations more effective and slick”.

Options

There is no shortage of options in the networks space for brokers. Previous calculations by competitor Cobra, which is targeting ￡1bn of premium by the end of 2025, found a pool of 800 brokers that are not in networks but should at least be considering it.

Haggart concurred with the number as he argued that while it is “great” there is so much choice of networks, he is convinced of Hedron’s future.

“I’m pretty confident based on our proposition and track record … we’ll win more than we’ll lose,” he said.

Reflecting back on the 90% take-up rate for an integrated proposition as a “pretty solid proof point in terms of direction of travel”, the Hedron boss said: “Brokers need a partner to support them.

“I only see that level of integration and desire for a broader range of services to be delivered increasing over the coming months and years.”

Haggart on learning about networks and taking up the CEO role

Hedron CEO Chris Haggart’s first job in insurance was at NFU Mutual. He acknowledged during his time there his knowledge of networks was “very limited” as he focused on building his technical capability at a highly specialist business.

It was the switch to Zurich, where roles included leading the trading team in Glasgow and latterly managing strategic accounts, that led to him becoming more entuned with the sector.

“My knowledge of networks built over that period of time,” he said.

Adding: “My interest really peaked when the network business came into GRP as was then. I started to do more homework on networks and what they delivered.”

GRP snapped up Marsh’s UK Networks in May 2021 rebranding the elements including ProBroker, Bluefin and Purple, to Hedron.

Haggart reflected there had been a “nuanced” and “good opportunity to roll those things together into something that was more comprehensive”.

“It isn’t a package type proposition where you are thrown into a particular tier,” he said. “People can flex the parts of the proposition that best suits their needs.” Indeed the name, he pinpointed, had been chosen with its multi-faceted shape and different dimensions to reflect both the different histories and heritage and the “optionality” that still exists.

Taking up the post at the start of the year, he found a “great business with a compelling proposition” but one that still had some work to do to make the Hedron brand stand out.

“There was arguably a gap in the prominence of Hedron as a brand both internally and externally,” he said. “It is the brand that people now attach to and recognise.”

The post has been hard work but “incredibly enjoyable”, balancing time between the industry, members and staff.

“I really get to see the very best of what the market can deliver,” he concluded