Making magic happen at ABN

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In the world of AFS licensees, one network punches seriously above its weight, but how does it create something larger than the sum of its parts?

WEIGHING UP the pros and cons of becoming an authorised representative (AR) can be a conundrum for many insurance brokers who reach a certain point in their careers. But Rebecca Mayak, owner of Macleay Insurance in Queensland and recent Insurance Business Fast Brokerage 2023 winner, knows she made the right choice. She looked at a variety of Australian Financial Service Licensees but worried that many of them would swallow up her independent operation and undermine the workflows she had spent years perfecting. “I felt that I had to conform to their systems and processes to the detriment of mine, and it felt that some larger AFSLs were more interested in growing their own brand rather than focusing on supporting the individual brokers,” Mayak says. She wanted a player that encouraged direct communication with the key stakeholders to ensure she got tailored support as her business evolved. The Australian Broker Network (ABN) fit the bill, and she’s never looked back.

Australian Broker Network (ABN) is a growing network of specialist brokers focused on insurance products, industries or geographical areas who aim to better advise SMEs and individual customers. Broker Partners have ownership in their own licence, enabling them to realise equity in the ABN network, enjoy lower licence fees and earn a share of the revenue from trust interest and insurer overrides. Broker Associate status is a stepping stone to full partner status, allowing businesses to grow while enjoying lower licence fees. ABN provides licensing, compliance, accounting, systems, underwriter access and other optional benefits. General insurance distribution, underwriter agency and discretionary mutual licensing options are available.

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GROWTH SKYROCKETS AT ABN

2017

“There was a spot [in the market] for professional insurance brokers who know the game well and simply wanted contact, touch, availability and response but enough space to run their own business”

Tremayne West, Australian Broker Network

The foundations of ABN make collective success part of the network’s DNA. They are based on a key insight that chief executive Tremayne West built into its operational structure when he set up the business in 2017. “There was a spot [in the market] for professional insurance brokers who know the game well and simply wanted contact, touch, availability and response but enough space to run their own businesses in the way they prefer,” says West.

His insight relates to one of the main reasons why a broker decides to become an AR in the first place – to ensure that they gain some equity in their business and leave behind something of a legacy. Rather than the network owning a slice of the AR’s book, West saw that a true partnership with financial ownership in the licensee would not only scratch the equity itch for experienced brokers looking to strike out on their own, but also leverage each broker’s experience to benefit the wider network and make the whole greater than the sum of its parts. “That's what the offering is at ABN – you can come in and own part of ABN and be part of that journey. It works especially well for our larger brokers who are looking for more control,” says

Looking at the trajectory for premium size at ABN, the collective formula is clearly a recipe for success. Growth rocketed at an incredible 300% year-on-year for the first two years of the business during the start-up phase, settling at a stellar 150%-plus level more recently on the back of organic growth – and new brokers continue to join ABN. While the growth is a collective effort under the ABN umbrella, some individual ARs are expanding quickly – a situation that could be a challenge for a network with a one-size-fits-all approach to how it supports brokers. But not for ABN. “My business has undergone incredible growth in the last 12 months. That came with some growing pains and often required

some agile changes in my business structure and processes… [It] required a higher-than-usual level of support from ABN, and they happily obliged,” Mayak says. Other brokers are in the process of updating systems as they go through various stages of development. Integrity First Insurance Solutions, for example, is introducing a new CRM and processing system that requires extra support as it is rolled out. “Tremayne and his team have gone out of their way to assist with the transition, which is a big learning curve for us all and initially is quite a labour-intensive task,” says director Debbie Cramer. “We knew his team, we knew they’d do all they could to assist us, especially in the early days. [It was] the best business decision we could have made. Not only are they assisting with this transition, learning with us, working outside of standard business hours, but they’re also doing their utmost to keep the costs down – this is what great teamwork looks like.” Cramer is another satisfied customer and also an Insurance Business Fast Brokerage 2023 winner. Something that comes up regularly is the unique quality that ABN brings to the table – the vast industry knowledge of West himself. “We’ve found the wealth of knowledge and industry contacts Tremayne has acquired over the years to be invaluable,” Cramer says. Blake points to the combination of insurance experience, broker knowledge and years working with small businesses as the key to West’s allure. “I think the magic that he brings into the network when he's working with the brokers is that he intimately understands how insurers work and think,” she says. “He also understands the broker world absolutely. And that, combined with the small business knowledge that you acquire when you're in start-up mode, covers off all the needs of these businesses coming in.”

West admits that the business environment has been tough recently. “The biggest challenge at the moment is the hard market that we've got in the insurance world with restricted appetite from domestic insurers and, obviously, price increases,” he says. He believes that a “solution-focused mindset” is key to thriving in the current economy, especially when insurers are reducing or even withdrawing capacity in some areas, leaving some customers flailing for support. ABN is well placed to find solutions for such cases. “We find it via overseas insurers, underwriting agencies,

ABN has a ‘systems-agnostic’ approach to its ARs, which makes for a streamlined onboarding process with little to no interruption to operations, and flexible support systems designed to make life easier for brokers. What they don’t tell you is that ABN’s systems also align with many of the insurers it deals with, which creates stronger efficiencies and robust relationships between ARs and insurers via the ABN network. When it comes to advocacy for brokers with insurers on policy, customer matters or portfolio issues, ABN gives its brokers a head start because West and his team have made sure that all parties are on the same page before the phone is even picked up. “[The challenge is about] understanding product, understanding price, understanding the provider of those products,” he says. “It's a very dynamic market at the moment, because one month an insurer is doing it, [but] next month they're not.” Helping brokers keep up with the market is another key role the network plays. “ABN provides regular updates on new insurers to the market by providing an overview of their target business, contact details and relevant insurer codes,” Cramer says. “The same applies to updated information on the more well-known insurers that may have improved wordings.” West expects further growth for the network and its members as ABN continues to provide the right conditions for talented ARs to flourish. He is targeting having 100 brokers in the network by the end of 2024, up from the current 60 – but isn’t in any particular rush. “It's really references to us, or people that we hear in the marketplace that are good that we then do that slow engagement with to say, ‘there is a better way’,” West says. “It’s organic growth – it’s back to the reasons that why we’re there is to assist our partners and associate members to grow.”

Something is going right

Ready for the post-pandemic challenges

Published 19 June 2023

“Insurance customers are used to now dealing remotely and/or electronically… That opens up a whole new engagement model, and a whole new retention model that can make efficiencies for us”

Tremayne West, Australian Broker Network

Growth in ABN's gross written premium

2018

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2020

2021

2022

2023

Source: ABN

GROWTH IN ABN’S GROSS WRITTEN PREMIUM BY TYPE

Source: ABN

2017

2018

2019

2020

2021

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2023

25m

50m

75m

100m

125m

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175m

New business

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“I feel comfortable knowing that our business goals align, and that they can assist me to navigate the changing insurance landscape and also to grow and develop my business,” she says. It’s no coincidence that Mayak feels looked after and that ABN aims to help her grow her business on her terms. Indeed, ABN’s unique formula means that her success is a priority not only for ABN itself but also for every other AR in the ABN network.

ABN director for people and reputation Angela Blake. If a client has a problem that is outside the skill area of the original broker, then ABN quickly finds an expert within its network who can support them.

It takes a village

Lloyd’s, or, potentially, unauthorised foreign insurers, but doing that compliantly and with full declaration from a client to accept that.” In a way, the post-pandemic world has made it easier for ABN to broaden its product supply chain and help brokers find solutions. No longer are trips to London and business lunches a requirement for dealing with Lloyd’s. “ARs that are focused on customer solutions … can equally open up new products suppliers as quickly because [of the ease of teleconferencing],” says West. The client base is also much broader as the shackles of geography are shaken off. “Insurance customers are used to now dealing remotely and/or electronically… That opens up a whole new engagement model and a whole new retention model that can make efficiencies for us.” West also sees compliance and keeping up with it as an increasing challenge for brokers, but he says ABN can add value by assisting with interpretations of new regulatory changes and their implementation.

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GROWTH SKYROCKETS AT ABN

Growth in ABN's gross written premium

Source: ABN

2017

2018

2019

2020

2021

2022

2023

50%

100%

150%

200%

250%

300%

350%

25m

50m

75m

100m

125m

150m

175m

Gross written premium

YoY growth

Show All

YoY growth

Gross written premium

353%

300%

183%

173%

158%

167%

RSS

Sitemap

About us

Conditions of Use

Terms & conditions

People

Specialty

Best in Insurance

Resources

Risk Management

News

RSS

Sitemap

About us

Conditions of Use

Terms & conditions

People

Specialty

Best in Insurance

Resources

Risk Management

News