Niraz Buhari is the managing director and founder of Watford-based Smart-Cover Direct, a regional broker focusing on gadget, appliance and home emergency cover.
On top of a busy two years of growth, following a significant acquisition of four books of business last year, the company was shortlisted for a national broker award in the customer service category this year.
Insurance Business spoke to Buhari about the challenges of setting up his own firm, how regulation has changed the industry, and why he thinks UK insurance is the most reputable industry in the world.
How did you get into the industry?
It was an accident, really. My passion before I started in the insurance industry was always telecoms. I was working for another insurance company which ended up going bust, and I was in the position where it was either, start something on my own, or accept failure. I set up an insurance company and became an Appointed Representative of another firm – a very small and humble beginning in 2012.
What was the experience of entering the industry like?
It was really difficult and challenging, especially without any experience. Going and convincing other insurance professionals that I could do it, asking them to take me seriously, and showing them that I was hard-working was definitely challenging in the beginning.
My current business partner is the one who did business with me first, and then two years later we merged our businesses together.
What are the biggest obstacles you’ve faced in your career?
The challenges I’ve faced have been building relationships with insurers, MGAs, and other third parties in order to start doing business with them. Just like going out and looking for a job, if you don’t have any previous experience it can be difficult. It was the same for me as someone who was starting out in the industry and trying to gain contacts – sometimes it’s all about who you know.
What you’re capable of doing and delivering matters once you have that relationship with your stakeholders.
How about some of the highlights?
My number one highlight has been successfully acquiring the customer databases of four different businesses last year and merging them into our main business. That improved our gross written premium by 60% in the space of six months, which would normally take three to four years on average.
What is the biggest change you’ve seen in the industry during your career?
The industry has become more compliance focused, and that has put a lot of pressure on small businesses to achieve their compliance targets. Regulators are expecting more from brokers, individuals – everyone. But it actually works out well for both companies and consumers, because customers are getting better service, and it has increased standards in the industry – those that are just looking for an easy life have moved on.
What keeps you interested in insurance?
In my opinion, the insurance industry – particularly the UK industry – is the most reputable industry in the world. It’s heavily regulated and compliance is a key element of any business. When I first started my business, I thought it would be impossible to achieve the compliance element while achieving my business targets, but ultimately it’s all about customers believing in what we’re selling. We need to make sure that customers know that we will do what we say we will. In that sense, it’s helped my business, and the wider industry. First of all you might think that it will hinder business growth, but you come to understand that it only makes it a better place to work for everybody, and for the stakeholders it’s a good thing in the long run.
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