Building Block PCC Ltd has delivered 10 schemes and seven niche product lines since the company began trading a year ago. CEO Paul Brierley hailed the ‘fast start,’ made by the Malta-based protected cell business, in what he called “some of the most challenging conditions in the UK insurance market for the last two decades.”
Commenting on the first year of trading, Brierley said the business had introduced GAP, Agri GAP, gadget, excess protection, rent guarantee and car hire excess through a number of distribution partners, and today announced that the latest product of the production line, homebuyer protection, which launches via The Source, an online GI platform used by IFA and mortgage brokers.
Brierley said: “We have built a strong foundation this year, both in product terms and new partnership deals, and as a result we are targeting over £3m of revenue by the end of next year, from a standing start, with a combined operating ratio of 89% over the same period.”
Brierley added: “This is our base case, but we are ambitious to outperform our targets, not just on the distribution side, but also agreeing a protected cell arrangement with one or more partners looking to benefit from our capital strength in Malta.”
Brierley said the trend for increasing segmentation in the home and motor market augured well for BBI’s niche and specialist strategy. “We have a further 12 product lines in build phase at present, and we are confident that demand for niche will continue to grow as the market continues to divide along standard and non-standard lines.”
As well as the UK, Brierley said the business was also exploring trading opportunities in the Irish Republic and other EU Member States. In the light of Brexit, we are convinced that Malta’s sound and strong regulatory regime will prove attractive to insurance businesses looking to trade in the EEA.
Brierley said: “I think offshoring to Malta will increase because it has both a close association with the UK but crucially, access to the rest of the Single Market. BBI is already well established in Malta and we would be delighted to advise potential partners looking to take advantage following the uncertainty caused by Brexit.”