Client Services
Essentially, the delivery of ‘client service’ to the end-user client is the responsibility of the local insurance broker with whom that client deals. The delivery of back-office services to the local insurance broker – which in themselves form part of the overall service level – becomes the responsibility of TEn.
As stated elsewhere on this site, this structure is very similar to the division roles that one finds in a large national broker, as between the client-facing Account Executive and the back-office Broker Technicians, the Accounts Department etc.
Client profile
What profile of client is the TEn broking model aimed at and best suited for? Basically, the answer is Commercial clients who will certainly have some adjunctive Personal insurance requirements as well. Equally, we are aimed at medium-high net worth individuals who have an above average complexity in their need for cover and a desire for local service and advice.
In terms of Commercial clients, the core of our business comes from SME businesses, meaning firms with the following number of employees:-
| Micro Firms | 0 | - | 10 |
| Small Firms | 11 | - | 50 |
| Medium Firms | 51 | - | 250 |
Obviously, there are exceptions and these are not rules cast in stone; simply guidelines.
Regulation
TEn is the entity that is “authorised and regulated by the Financial Services Authority’ and we are responsible for the conduct of our Appointed Representatives (ARs) in exactly the same way as a normal broker is responsible for the conduct of its Account Executives.
The client is, therefore, no less protected.
see here - Terms Of Business Agreement
Client money
Because TEn is answerable to the FSA for the capital adequacy of the whole enterprise and half-yearly financial reporting to the regulator, all payments by the client MUST be payable to TEn. These are then held in a separate Trust Account until the insurer is paid.
This method also makes the whole collection process a lot more efficient and, in respect of Premium Finance (instalment) arrangements, the amalgamation of all AR premiums results in a lower interest charge to the client.
Selection & inspection
For the most part, the firms who become Appointed Representatives of TEn are run by people who have 10-15 years experience in the market and many have CII qualifications. All must satisfy our entry criteria and, depending upon the structure of their business, most have to be registered as Approved Persons by the FSA.
TEn typically turns away four membership enquiries for every one we take forward.
Once appointed, a TEn AR can expect a quarterly visit from a TEn ‘inspector’ who acts as our interface, mentor, trainer and FSA compliance auditor to that business. Periodically, every AR is visited by an outside firm our compliance auditors to give us an independent assessment of their adherence to the regulatory framework.
Consequently, TEn expects, encourages and assists to maintain the highest standards of conduct and client service within its membership. We see this as our duty to the clients, to all of our members and to the regulator.
