Source: Insurance Business Magazine
The firm behind online SME broker ConstructaQuote.com has launched a new brokerage, specialising in professional indemnity (PI) and cyber coverage for small businesses.
Black & White, a trading arm of Moorhouse Group, is an online broker catering to businesses with up to 15 employees – a segment that the firm’s CEO says can be particularly vulnerable to a cyber-attack or an indemnity claim.
“It’s an important bracket, because this is the bracket of business that when something hits like a cyber-attack, it can kill the business. These are businesses that cannot afford to have their systems taken down for a week, never mind a month or two months,” Lyndon R. Wood, chief executive and founder of Moorhouse Group, told Insurance Business.
The new brand was officially launched last month following a soft launch in February, and works out of Moorhouse Group’s established base in Caerphilly, Wales. While the business is already “well versed in online channels,” through sister brand Constructaquote.com, which specialises in cover for contractors and tradespeople, there is a continued focus on service, says Wood.
“It’s about providing value to customers,” he said. “We’re definitely a business with customer centricity, and definitely a business that likes to support and help all of our SMEs, it’s not just about selling them insurance. We provide other materials and other advantages for them – information and knowledge.”
The “growing” PI market is a “very profitable segment for insurers,” Wood explained, but the nature of online business means that it remains competitive. “Anything online is price-driven and price-sensitive, but we’re a service-led organisation,” he commented. “Selling the service standards when someone just wants a better price can be challenging sometimes, however we manage to do it and do it well.”
With cyber-attacks continuing to dominate headlines, businesses are finally waking up to the reality that they need to protect themselves, which is driving growth for cyber coverage. “We are definitely seeing demand on the cyber side, and it’s a great door-opener from a sales point of view because it’s on everybody’s mind, it’s in the papers every day,” Wood said.
“Companies need to be aware of cyber and certainly what a cyber product covers,” he continued, but there is still a long way to go in terms of raising awareness and educating smaller businesses.
“There’s always an education element with anything new… We have started producing more and more materials to get that message across. There’s a definite education process, because people think hackers will only go for Sony, or the NHS… but cyber comes in various forms.”