BMS brings 'A game' to ride out hard market challenges

UK-based BMS Group says its Australian business achieved “fabulous” growth in the past 18 months, having doubled its gross written premium (GWP) to more than $160 million during the period despite some very tough market conditions for hard-to-place risks.

The specialist broker says the current environment has allowed its team of risk advisers to demonstrate to clients the value they bring to the table.

“We’re in a hard market and that means you have to bring your A game,” Australia CEO Andrew Godden told insuranceNEWS.com.au.

“We work in partnership with our clients to ensure we are as prepared as possible to deliver the best results.”

Mr Godden says closing the deal for Perth-based SRG Group in July – the acquisition was BMS’s seventh in the last two years – was one of the key highlights for the Australian business.

SRG was founded in 2005 and offers corporate and small business broking and claims management services. BMS says the addition of SRG gives the business a strong presence in the west coast, complementing its network in the eastern states.

“It’s been what we have been aiming to do which is get a bit more scale, more presence nationally,” Mr Godden said.

“We’re placing over $160 million of GWP out of the Australian business now and that includes a decent chunk from SRG.”

Mr Godden says the business has scope to grow further with newly appointed International CEO Nick Gillett set to start in January. Australia was identified as one of the key target markets when his appointment was announced last month.

“We’re very excited to have someone of Mr Gillett’s reputation and capability joining BMS,” Mr Godden said.

“BMS is growing rapidly internationally and his experience will be invaluable in supporting our growth ambition.”

Mr Gillett is presently with Aon, as Chief Broking Officer, Global Broking Centre in the UK. He was MD of Aon Benfield Singapore before spending more than 20 years at Aon and its subsidiaries.

Asked if the industry is better served by a commission or flat fee model, Mr Godden says he sees disclosure and transparency as the biggest issues in the remuneration discussion.

“If we are very clear and transparent with our clients about what they are paying and what we as brokers earn, in my view that solves the issue,” Mr Godden said.

“I’m all for brokers earning the right amount, the fair amount and if that’s by way of a commission that’s okay as long as clients understand how it works and how much it is.”