Business partnerships

The Econorisk business model permits almost constant expansion of the business base. Our inclusive, open-ended structure is specially designed to accommodate the experienced broker who is looking for a home, either as an employee or a potential business partner who needs help to roll out an expansion plan.

The Econorisk model is not only a growth engine; it’s a blueprint for business sustainability as it assumes continuing attack from various quarters and creates appropriate solutions.

Our scenario-planning anticipates:

• continuing legislative pressure, leading to broker casualties and industry consolidation as regulatory rigour increases the cost of doing business
• ongoing business challenges as client companies look to cut costs and perhaps embrace alternatives to traditional short-term solutions
• further skills shortages as the industry is not attractive for many potential entrants – legislated skills requirements can be onerous while some find the old ‘grey-suited stereotype’ off-putting
• solution-neutral thinking among both clients and underwriters who no longer feel they must remain allied to the broker community and will change allegiance, depending on circumstances and price
• growing underwriter expectations that some brokers may find tough to meet

Econorisk was designed to outsmart these challenges. The higher cost of doing business translates into steeper barriers to entry, a positive for existing players, especially well-capitalised operations like Econorisk with solid cash-flows that have already made significant investments in admin and IT capacity.

Providing compliance structures and record-keeping capabilities from scratch is prohibitively expensive for a traditional broker focused almost entirely on his marketing strengths. The industry player who can offer shared access to these facilities therefore becomes a desirable partner.

One set of overheads can cost-effectively cover multiple contributors to the business – a formula for growth for a firm like Econorisk with system capacity to spare.

Simultaneously, the constant drain of industry skills makes it imperative that a business drives people development. This is common cause across the industry, but the Econorisk approach goes further. We foresee growing competition for the best and brightest among would-be industry entrants. To attract the cream of the crop, we have developed a business-incubation process that enables industry newcomers to become brokers-in-training.

These entrants have access to the skills and system support not only required by law but demanded by market conditions. This helps the internal broker-to-be to develop his/her own clients and base of business. The concept encourages smart go-getters to come to Econorisk and contribute to ongoing growth. The goal is to make Econorisk the employer of choice in the short-term broking business.

Econorisk forms alliances with like-minded independent advisers while breeding a new wave of broker-entrepreneurs inside its own business.

We unlock broker power in several ways, including:

• A unique internal incentivisation model: remuneration is linked to performance while a solid basic income is assured. The approach attracts self-starters and goal-setters while rewarding their energy and dedication.
• The business-within-a-business: a start-up broker has the opportunity to run his/her mini-brokerage within Econorisk. Overheads are covered. Econorisk resources are on tap. The security of a place within the Econorisk family of companies and readymade support structures create an industry entry-point and fast-track up the growth curve. This ‘plug-in’ capability is ideal for ambitious young people with entrepreneurial drive who might otherwise be shut out of today’s industry by the need for substantial investment to meet regulatory requirements. This type of joint-venture creates access to funding. The equity partner assists with cash-flows and helps a young business grow.
• Customised partnerships: cooperation with existing brokers is fostered through various structures determined by the broker-partner’s need. Some require access to back-office facilities and back-up from a strong partner on an on-going basis. Others require tailor-made support to meet the needs of a particular large client or group of clients. The Econorisk link can enable a broker to grow a specific aspect of their business or protect a client relationship when new customer needs emerge. Econorisk’s growing industry stature is also a boon in dealings between big underwriters and relatively small independent intermediaries.
• Alternative distribution network: compliance requirements in the short-term field prevent unauthorised non-specialists from handling the short-term insurance needs of their clients. Partnering with Econorisk enables fellow professionals to stay hands-on with their clients while ensuring absolute professionalism in the delivery of short-term services. Sub-agent arrangements have been tailored for life insurance advisers, auditors, accountants, book-keepers and other professionals.

We are brokers who are extremely broker friendly; first on the inside where we incubate tomorrow’s broker talent, but also on the outside where we are very open to mutually beneficial arrangements with other industry professionals.

If you are interested in talking to us about partnership opportunities, we invite you to contact Rob Sylvester, the CEO, directly.