In a major development for the specialist risk advice sector, MBS Insurance and Queensland firm, Personal Risk Professionals (PRP), have announced the two businesses have joined forces.
Under the arrangement, MBS Insurance has taken a minor ownership stake in PRP, described by its founder and MD, well-known risk industry identity, Mark Everingham, as a win/win arrangement.
The combined business will include a pool of more than 30 specialist risk advisers operating on a national basis, with an enhanced capacity to secure more risk advice outsourcing arrangements with accounting and wealth advice firms, stand-alone acquisitions or by assisting other risk professionals to grow.
Critical to the completion of this arrangement, according to MBS Insurance Co-CEO, Kris Mason, has been the quality of the PRP business: “Aligning good people with good skill sets has been a huge part of doing this deal,” he said.
As MBS continues to selectively grow its national presence through this latest announcement, the arrangement allows PRP, which until now has been a service operating mostly in one state, the opportunity to further expand its own offer while retaining its PRP brand presence.
According to MBS Insurance Co-CEO, Drew Burden, the benefits for PRP that will flow from the combined business include:
- Operating in future under the MBS Insurance AFSL
- Accessing the governance arrangements applied across the MBS advice business groups
- Back-office efficiencies including data and client management services, combined with greater tech and buying power
- Exclusive insurer arrangements negotiated by MBS Insurance
- Capital to make further risk practice business acquisitions (PRP has recently completed a merger with Queensland firm SME Wealth Protection)
…the demand …remains far greater than the current supply
While much has been spoken about the sustainability of risk insurance advice under the current commission arrangements, Mason says MBS has been focused on driving adviser and operational efficiency: “With a customised Salesforce and Omnium platform alongside other technology advancements, we anticipate providing PRP and other professional firms with the opportunity for 30% – 40% year on year growth,” says Mason, where he added the demand for this critical service remains far greater than the current supply.
