Bruce Stevenson carving out niche for insurance provision

Age: Just turned 50.

What is your business called? Bruce Stevenson Insurance Brokers.

Where is it based?

Edinburgh, Glasgow, London and Aberdeen.

What services does it offer?

We sell bespoke insurance solutions to a range of corporate and individual clients.

Who does it sell to? Overall, 85 per cent of our business is with corporate clients and 15 per cent is with individual and high-net-worth customers.

On the business side, as well as general business insurance, we have specialisms in social housing, small and medium sized enterprises, renewable energy, property insurance and farms / rural estates.

On the individual side, as well as broking straightforward house and motor policies, we specialise in the art, jewellery, antique and heritage-property markets.

What is its turnover?

Our most recent gross written premium (a key measure for insurers) was £20 million while our income was £4.5m. We think that makes us Edinburgh's biggest independent broker by a long shot, and the second largest in Scotland.

This insurance market is cyclical. We have generally been in a soft market for the last five years. Commercial rates have largely been flat, if claims experience is favourable. There are certain areas of business which have gone up due to market experience, such as unoccupied properties and recycling businesses. Private motor insurance has come down, gone back up and looks like it is about to come down again. Generally, there is too much insurance capacity, hence a soft market. Some insurers have not been providing a good return to their shareholders - private motor insurers have made a loss in nine out of the past 10 years - so capacity may be reduced in the future.

How many employees?

We employ a team of 80 people but our growth plans mean we are looking to take on more specialists.

Recent consolidation in the industry means others are shedding key employees. We are doing the opposite and are always on the lookout for new expertise.

We have had approaches from those looking to consolidate but we are determined to remain independent. No acquisitions are planned at the moment but a number of very good staff are joining over the next 12 months. We see a very good future ahead for strong, independent insurance brokers who focus on their customers and staff.

When was it formed?

My father started the company in 1981. He had been working for a brokerage that was taken over by a large conglomerate, a business model he hated, so he formed Bruce Stevenson with the aim of providing the bespoke customer solutions that's still the basis of our business today. I joined in 1996 when we only had 15 employees.

Why did you take the plunge? There was a combination of reasons that made it the right thing to do: I was getting married and my wife wanted to live in Edinburgh, rather than in Fort William where I was based at the time; my father had always wanted me to join him and bring some of my real estate expertise to the company; but mainly I saw the potential in building the business and extending its reach into the areas that we are in now.

What were you doing before you took the plunge?

I started out as a chartered surveyor based in Fort William - the source of my property knowledge.

How did you raise the start-up funding?

When I joined the business it was going through tough times; the board was divided on whether to sell out or keep going independently. My father and I decided to buy out some of the other shareholders and got bank funding to expand. We remain an independent business with no outside shareholders - the management team all have a stake in the company so it's our money that's on the line whenever we come in to work - that helps keep us focused!

What was your biggest break? The board and my father having faith in my plans to take over the business and to run it my way.

What was your worst moment?

In some ways the best moment - taking over the business - was also the worst. I had a young family to look after as well as running a business that was new to me. On top of that, I am passionate about education in this industry - you can't help people with specific problems unless you have specific knowledge. I couldn't insist on everyone else having top-notch qualifications without that extending to me. So besides running the company and looking after my family, I was doing insurance exams, working till midnight and all weekend - it was a nightmare looking back, but ultimately rewarding.

What do you most enjoy about running the business?

The freedom and also the pride in the business and staff. We aren't answerable to anyone apart from our customers, so we have a tangible sense that our decisions really count in growing the business and helping our clients, maybe not something that you'd get working in a larger conglomerate.

What do you least enjoy?

We are strong supporters of good, effective regulation. There are, however, some rules about running a business (not necessarily related to regulation) that are unhelpful. I don't like box ticking for the sake of box ticking.

What are your ambitions for the firm?

Long term sustainable growth and building on our status as 'the broker of choice.'

The key word here is sustainable. Our growth of the business has always been gradual - we have expanded in increments and I have never, and will never, gear the business up. Insurance is about managing risk - we'd hardly take a risk with the business by burdening ourselves with a huge amount of debt.

What are your five top priorities?

To enjoy what I do and make Bruce Stevenson a fun place to work; build a business which is seen as the preferred choice in the sectors in which we operate; lead by example (even if it means the long hours I mentioned above); have a happy and growing client base; and on the personal front, giving my children the best possible start by instilling in them core values and principles to see them through life.

What single thing would most help?

I'd love more school leavers and graduates to come and talk to us about their career. When people think of a career in finance they often think of banking or fund management - insurance is often overlooked. That's a great pity. It is a dynamic industry with good prospects. And it's fascinating - one day we'll be dealing with a claim on a damaged wind turbine and the next it might be on a famous work of art or an old castle.

What could the Westminster and/or Scottish governments do that would help?

Anything they could do to encourage enterprise would be great. It would not only help businesses like ourselves, but also the companies out there that we serve, who are our main source of income.

How do you relax?

A long walk in the countryside with my dog followed by a good meal with entertaining company, washed down with some fine wine - a perfect day.