Challenges of Starting and Growing a...

Challenges of Starting and Growing a Successful Insurance Broker Business

I have recently interviewed several Insurance Executives to discuss their business, including key achievements, some of the challenges they’ve faced, lessons learned and future market developments.

Today’s interview is with Gary Williamson, Managing Director, Gazelle Risk Solutions.

With 30 years of experience leading broking and insurer businesses in the UK, Gary is the driving force behind Gazelle Risk Solutions.

30yrs in the insurance industry, worked as a broker, insurer (niche and composite), Lloyds’s broker and in the London market in sales, operational and leadership roles so covered most areas of the industry giving me a decent perspective across the board of the challenges faced in all kinds of business within the sector. Very importantly that has also given me some great connections and friendships from across the marketplace, many of whom have been integral in the early stages of setting up Gazelle. I launched the company in November 2023 and began trading in Q2/24, but the business really kicked on from Oct / Nov 24 as new broking and sales staff started to join the business. Having been MD and shareholder of owned, private equity backed brokerage, I knew what I wanted to do when I set up Gazelle and the kind of business I felt it should be.

What were your motivations to establish Gazelle Risk Solutions?

A big motivation was to not have a boss ever again! I have been lucky to have worked for some amazing people over my career who have helped me to develop and challenge me, I have also worked in some awful cultures for individuals who put the balance sheet above all else, including the team and customers which breeds an awful atmosphere and often poor results. I don’t pretend to know everything about everything, but I do surround myself with people who have experience and often differing views, whose advice I am happy to take on board and I believe we all should.

I believe that if you get the hires right and give them authority and autonomy to deliver results whilst absolutely prioritising the customer that the results will follow, and they do. I was brought up in insurance on what I consider to be traditional values and ways of doing business and I feel that it is a shame that too many businesses in the insurance sector, whether through acquisition or an almost single-minded approach to growth and EBITDA have lost their personality and customer focus. There are some terrific brokers out there across the UK, but there is also a big gap for more firms who hold the traditional values of putting your customers at the heart of decision making. We continue to pick up clients from firms who are part of the PE cycle whose eye is off the ball when it comes to customer and that is why Gazelle exists, we want to look after our clients like they should be and once were.

What were the main challenges in getting the business up and running?

The main challenges to getting the business going were time and some things taking longer than you would hope. With a change in government when I set up the business, slow responses from some of their departments and tax hikes coming in at the same time, being an ‘entrepreneur’ who is striving to build something and employ people, can seem like a very lonely place where the very things you believe should be championing you are in fact some of your biggest early challenges. When you have a clear idea, a plan and you know others are keen to get on board, you have boundless enthusiasm to get things moving at a pace to turn your ideas into reality, however, you have to learn patience as most things starting up a business take time so for a person with drive and a desire to be active, time and patience are often your biggest challenges.

How have you looked to differentiate in a competitive marketplace?

I think you have to start with what you know, and what drives you. For me, that is an absolute passion around the traditional values of customer service. That may sound simple however so many get it wrong. Whether it’s a once customer focussed business who have grown through acquisition that have lost their focus, or a call centre operation that doesn’t employ experts, there are so many examples of poor service in our industry which can be a serious problem for customers, especially as they try and navigate a claim, a time when a broker should really show their true value. Whilst we are proud of our brand, our partners and our clout in the market for a new business, our real differentiator is our people. We have pulled together a team of industry experts who are like minded in their determination to work in and for a business that puts the customer first and delivers on its promises. Our culture is the best I have known and that is down to each and every one of the team who have brought their experience and passion into Gazelle. All of our team have worked for much larger organisations and have felt at times lost or ignored, so allowing the team a voice in decisions and some autonomy around the way they operate, in a structure that rewards creativity means that our customers really do get the best of us and we are all able to offer service with a smile on our faces.

19 months in, were there in any surprises?

Having run businesses before for other people, I haven’t found too many surprises on the business front, except of course the number of times I use the word cashflow (something I was told as an SME business owner I would do). The biggest surprise has been the support we have received from the market, from partners, from clients. Having built many strong relationships in 30 years in the industry I expected some support, but the goodwill out there has been unbelievable, whether a passing comment, a LinkedIn like, right up to introductions, offers of support or investment or partnerships has been a real highlight for the business.

Knowing what you now know, would there be anything you would do differently?

I don’t really believe in regrets or beating yourself up for mistakes too much. There are always decisions that don’t go your way, but I live by the mantra ‘fail fast’, if something hasn’t worked, deal with it and find a way forward. There will always be curve balls and no-one in business makes all the right decisions, the key is making decisions, whether positive or difficult, I firmly believe that’s what sets the best people in business apart, that ability to make a decision and own it, whether you get the results you expected to or not.

What was the steepest learning curve?

I have always carried my job with me, in years climbing the corporate ladder, work has always sat high on my priority list. The difference when it is your own business however is truly unreal. The sleepless nights, the worry, the ‘pinch me’ moments when something goes better than planned, it all matters so much more. I am working on having other topics of conversation than Gazelle after realising that not everyone cares quite as much as I do, it’s a little like when someone wants to show you pictures of their kids all the time. It’s an amazing feeling running a relatively successful business, but it really is a 24/7 job, and you are constantly your own biggest critic.

In a very competitive recruitment market, how have you attracted new team members?

The 30 years in the industry has helped, the credibility and relationships that has brought has been the main source of talent for Gazelle. Recruitment is tough, very tough, salaries have been on the increase for years and there has been a lack of investment in young talent in the industry for even longer. We have generally been selective when hiring talent, almost all of the team at Gazelle are known to me, either as ex colleagues or via connections in the industry, that way I also know that they fit the culture that the business has created, and the team will embrace them. We have had to step outside of that talent pool a couple of times and it has been tough, and we need to keep learning there, however, now we have great role models and experience in the business I believe that it will be easier to find people who can follow their example. Those that know me, know I am ultra-passionate about supporting young talent in the industry, so much so that my own 2 kids both work in insurance, so we are exploring other routes such as apprenticeships to find and nurture talent as we all believe at Gazelle in paying back, sharing our knowledge, and developing the next generation.

How do you see the regional and national broking sector developing or changing over the new few years?

I believe the precedent is set for the next few years as the sector continues to be driven by the private equity cycles and acquisition plans of the largest consolidators and global brokers sweeping up the next tiers down. The challenge with that eventually, however, is that there are less and less attractive mid-sized brokers available to acquire. This is where hopefully, and if our experience at Gazelle is anything to go by, we will continue to see entrepreneurial individuals leaving these larger businesses and setting up, creating the mid-sized brokers of tomorrow. As some of the consolidators are now selling too, I am sure this will be fast-tracked as whilst buying for scale and EBITDA is a strategy for the largest brokers, this continues to drive less customer focussed activity and create more opportunity for those for whom the customer remains their priority.

How do you see advances in Ai and technology impacting the sector?

It’s well known that insurance technology remains way behind other industries with a lack of innovation and competitors driving improvements over many years, this is now starting to catch up and we are seeing AI being discussed more and more and introduced by larger insurers and even some brokers. It will inevitably start a trend of AI being used on a much wider scale, although it is too early to see where that technology is becoming a real game changer. I think some larger organisations who have the challenges of managing scale, costs and harder to fill jobs, will utilise AI more and more as part of the customer journey which for commoditised business I can see some value, however, like technology hasn’t replaced the value of a good underwriter to trade with brokers, I cannot see AI replacing great brokers in delivering customer service. We are all considering ways of using AI in back-office processes and there are definitely uses that will benefit us all in gathering information and reviewing risk trends etc., any technology that improves the clunky processes of our industry should be embraced, we just need to use the time it saves to focus much more time and energy on adding value for our customers, not on using it to replace those delivering the service.

What do you see as the opportunities for Gazelle Risk Solutions moving forward? Where would like the business to be in 5 years?

There are so many opportunities out there, the biggest challenge is picking the right ones and focussing on those, keeping an open mind on new opportunities but remaining laser focussed on those in front of you. Like all good businesses, we have a strong core plan of where we are aiming for in 5 years and our plans to get there, we have built in space to allow us to pick up new opportunities outside of that. Core plans involve us building on our first Gazelle product, Recruitment Company insurance and becoming an industry leader in the sector. We have significant experience in the recruitment market so know where we can add value, both in the industry today and where it is heading including more focus on global placements. Beyond that we have other products coming out in 2025 and 2026 that will support our development and take us in new directions. Allied to our continued growth on our commercial and corporate client growth plans and evolution of our team, we have goals to acquire business where appropriate at the right time. I believe our goals are very similar to a number of businesses out there, our opportunity continues to be the team that we have to execute them, with the team we have in place I believe we can achieve anything we set out to do. We are not about growth for growths sake however, all of our goals are aligned to our values and specifically to being a business that puts all of our clients at the forefront of our decision making.

What advice would you give someone looking to start and develop a regional broking business?

Do it! If you have the experience and passion for it then it’ll be the best decision that you ever make. Things to consider are:

1) It won’t happen overnight – building the business, brand, edging into the market, moving and winning clients all take time.

2) It won’t come cheaply – ensure you have the ability or an investor to navigate those early months / years where cashflow is a daily challenge and you certainly won’t be paying yourself a big corporate salary for a long time.

3) Do it for the right reasons – our industry has been overrun by cash in the past years, it’s easy to get caught up in the talk of EBITDA and multiples (I was 20 years+ in the industry before I used either term) and making a quick return. The industry remains about trust and relationships, something we have to have and give to our markets and clients, and we should not lose focus on that chasing a quick return.

4) Have the right team around you – both at home and in the office, you need to ensure that they all have your back, are with you on this journey and you would want them in the trenches with you, I cannot understate the importance of the people who will help you along the way.

Right International are market leading recruiters to the MGA, Claims, and Insurance sector.

If you are looking to add to your team now or in the near future or are considering your next career move, please contact myself or one of the team.

All the best,

Gary Pike

Founder & MD Right International

garypike@rightinternational.com