Opportunity

To best serve policyholders in their time of need through exemplary customer service and high quality workmanship

Concept Claim Solutions Franchise Prospectus – June 2021

‘To best serve policyholders in their time of need through exemplary customer service and high quality workmanship’.

Concept Claim Solutions Franchise Prospectus – June 2021

‘To best serve policyholders in their time of need through exemplary customer service and high quality workmanship’.

Our aim is to provide a complete one stop shop for all building related repair, home improvement and maintenance solutions. Concept Claims Solutions (UK) Ltd is one of the pioneers of buildings insurance claims management and the longest standing subsidiary of the Insurance Solutions Group.

Established in 2002 as a franchise organisation, Concept Claim Solutions became one of the fastest growing franchisors in the UK, developing a national franchise network of insurance claims managers. Concept is now considered a market leader in its industry and has franchisees servicing the UK.

Our franchisees are property insurance claim management specialists dealing with the escape of water, fire, storm, impact, accidental damage, malicious damage and pretty much any other type of property claim you can think of.

How Does It Work?

Insurance Work

As a National Network we work with policy holders, insurance companies and loss adjusters to reinstate a property as quickly as possible.
Our Area Managers (franchisees) represent the interests of the policy holder and provide an end-to-end project management service to return residential and commercial properties back to their pre-loss condition.
For many franchisees most inbound enquiries are made via phone or email and come into our Contact Centre based in Preston, Lancashire. They are logged on our bespoke CRM system which, based upon the postcode of the loss address, will automatically allocate the enquiry/lead to the relevant franchisee. Where an enquiry/lead is received in an area not already owned by a franchisee the enquiry will either be allocated to the closest franchisee willing to service it or managed by Head Office.
Once allocated the franchisee will receive an email notifying them of the new enquiry/instruction along with a date and time to attend the property. A link within the email will take the franchisee directly to the details of the potential customer in the CRM system – this will include the name, address, contact numbers, email address and loss details of the claim. We recommend to our franchisees that they contact the customer by phone upon receipt of an enquiry to re-confirm the appointment – this also helps to break the ice when they first meet.
Prior to attending the loss address the franchisee will print out an ‘Initial Site Survey Form’ or access it electronically during the visit. Concept’s franchisee will then attend the property, survey the insurance related property damage, and provide a detailed report of their findings. They will also ask the customer to sign a Letter of Authority The report will include the reasons for the damage (and claim) and contain a schedule of recommended repairs (schedule of work/detailed quote), including the financial costs, that will be sent to the insurer. The report is created using our bespoke system that will include prices for having the rectification works completed. The franchisee will then negotiate and agree the scope and cost of the reinstatement work with the insurer or their representative (usually a loss adjuster).

Once authorised in writing by the insurance company or loss adjuster the franchisee will then update the CRM system to advise Head Office they have received an authorisation to proceed with the repair works. Concept’s Head Office will then organise for the repair works to be undertaken utilising qualified vetted tradesmen to return the property back to its previous pre-loss condition. Upon completion of the repair works the franchisee will return to the property to ‘sign off’ the job and ensure the policyholder is happy with the completed works. There is also the option to arrange the repair work yourself if you believe you can obtain better rates for the repair work than Head Office – if this is the case a flat percentage fee is payable. Occasionally, policyholders are just looking to receive a cash settlement and then arrange the repair works themselves once the franchisee has managed the settlement negotiation on their behalf. Our model accommodates this by charging a percentage based loss assessing fee (usually around 15% of the claim value) to the policyholder and is governed by the Letter of Authority signed by the policyholder. Although this model generates less revenue/profit it does (usually) mean that the involvement by the franchisee is much less and can result in significantly quicker pay-outs than having the work undertaken. Head Office will invoice the insurer for the work and will also undertake the credit control function of chasing the payments down on behalf of the franchisee. Upon receipt of payment from the insurer Head Office will make payment to the franchisee within our agreed payment terms.

Private Work

The Concept model was originally built around handling property insurance claims on behalf of the general public and this remains the core of our model today. However, over the years it has become apparent that many people see an opportunity to renovate their property following damage to it as part of an insurance claim. This work will never be covered by the insurance company in terms of cost but it is often more convenient for the homeowner to have the work undertaken at the same time as the insurance repair work. In some cases what a homeowner believes is an insurance claim turns out not to be (usually due to wear and tear) but they still need to have the work completed. We have therefore developed a ‘private work’ offering to customers either as an extension to their insurance claim or just as standalone repair/renovation work.
In terms of process it works in a very similar way to the insurance work but obviously without the need to obtain authorisation from the insurer. In a nutshell a Concept Local Area Manager/franchisee will receive an instruction (via the CRM system), contact the customer, attend a site visit, and obtain a signed letter of authority, create a schedule of work (detailed quote) and ask the homeowner to formally accept the quote. Depending on the size of the job a deposit and payment schedule may need to be agreed with the homeowner to minimise exposure in the event obtaining payment on completion become difficult.
Once everything is agreed the details are provided to Head Office who will arrange for the repair/renovation work to be undertaken via its network of approved contractors or alternatively you can utilise your own contractors to do the work. Head Office will invoice for the works as per the agreed payment schedule with the customer and upon receipt of funds make payment to the franchisee.

CBS Claims Process

The System

Since entering the loss assessing and property repair market in 2002 Concept have continually revised and improved processes and systems to ensure we remain at the cutting edge of technology but for the right reasons – to make life easy for us, our franchisees and customers as simple and straightforward as possible. We have developed our current system as part of an organic evolution based on the feedback and experiences of our franchisees coupled with changes in the insurance market.
Our system allows the complete cradle to grave management of both a property insurance claim and private renovation job from first notification through to settlement. As a franchisee nearly every aspect of your business can be operated through our system with the exception of creating a set of accounts (but we have a out sourced partner solution for that).

CBS Private Works Process

How Does a Franchisee Make their Money?

Concept franchisees make their money by positively negotiating the price of the repair works at a customer’s property -either with the insurer as part of a claim or with the home owner in respect of repair/improvement works. Head Office provide a ‘discounted’ schedule of rates which is the base cost to the franchisee for undertaking the repair. Anything above these rates is what the franchisee earns as profit. This applies to both insurance claims work and private work.
For example if a franchisee scopes a decorating job using the system at £1000 base cost but then charges £1200 to the insurance company their margin would be £200.
Where a franchisee wishes to use their own contractor then they pay a flat fee of 15% of the repair costs back to Head Office and retain the rest for themselves.

Why Do Our Policyholder Customers Choose Concept?

Our customers choose us for a variety of reasons but efficiency & transparency are what make our service stand out from the crowd. We will attend site within 48 hours and ‘get the ball rolling’ on an insurance claim as soon as possible. We include the policyholders and their advisors in each and every stage of the claims process. Clients have a single point of contact (Concept Area Manager/franchisee) during the claims process to ensure fluid and clear communication with all parties involved.

Service benefits

  • We deal with everything providing a cradle to grave service including contractors, administration, insurance companies etc and we ensure all parties are treated fairly when negotiating a settlement.
  • We deal with a wide range of claims from small basic decorating jobs to large complex full house fires. Our report schedules are very detailed – we break down costs for all items individually ensuring full transparency for all parties. The costs charged to insurers are standard market rates for a good quality repair.
  • Our experience means that we present a claim expertly to insurers to obtain quick authorisation
  • Our local managers will safeguard policyholder interests as we understand insurer requirements.
  • We use qualified/time served vetted tradesmen and repair work is usually started 96 hours from receiving authorisation from the insurer. We start and finish repair works as soon as possible compared with insurers. We can do this because we undertake all emergency works, drying works and building works to ensure a complete solution. This allows us to reduce the claims lifecycle wherever we can to reduce the stress and inconvenience to the policyholder.
  • We invoice the insurer directly so no cash outlay to the client (apart from the policy excess).
    Customer satisfaction assurance – insurers will not issue payment until the policyholder signs the job off.
  • We provide a professional, reliable service through our FCA authorised and regulated local area managers (franchisees).

Why Do Our Broker/Property Agent Clients Choose Concept?

Most brokers and property agents want what is best for their customer and so the reasons above tick many boxes for our clients – they have the confidence that their customer will be well looked after. However, there are additional factors that influence why a broker or property agent may choose to utilise the Concept service – see below:

Customer Representatives Benefits

  • High post claim customer satisfaction rate leading to retained customers at renewal. Research shows that policyholders with a bad claims experience often change provider at renewal.
  • An opportunity to liaise with their customer and demonstrate the customer is receiving ‘value for money’ from their insurance product. Most brokers have very little interaction with their customers once they have sold the product to them – again this can lead to losing a customer at renewal.
  • Revenue generation – our Local Area Managers/franchisees will often pay a small referral fee to a broker or property agent (usually around 5% of the claims cost) for each claim that they assist the policyholder with.
  • Cost reduction – through Concept handling the insurance claim the broker/property agent negates the need for the additional administration and frequent communication that comes from liaising with the policyholder during the claims process. This saves them time and ultimately money as Concept does it all for them and just keeps them updated.
  • Fair claim costs – Concept provide a detailed schedule of works giving complete cost transparency and will undertake emergency mitigation works where required to reduce claim costs and ensure the insurer is not overpaying for the claim.
  • Concept Local Area Managers/franchisee focus on reducing the claim lifecycle through efficient project management and effective communication providing an improved customer journey in comparison to claims where Concept are not involved.
  • Rapid identification of fraudulent or wear and tear claims by Concept’s Local Area Managers/franchisees means that brokers can be confident that only valid claims are submitted to their insurers. This helps insurers avoid ‘burning the book’ – a term that refers to them paying out more in claims than they have received in premiums.
  • All Concept local managers are FCA authorised and regulated as is Head Office – this provides clients with peace of mind that quality vetted professionals are dealing with the claims on their behalf and that they and their customers have some recourse in the event something goes wrong.

Why We Franchise

Franchising is one of the most tried and tested business models for growth and expansion, some of the world’s best known and most successful companies operate using this model. We chose to franchise the business to allow sustainable growth, utilising local knowledge, to best serve policyholders in their time of need through exemplary customer service and high quality workmanship.
We still operate territories ourselves that are local to Head Office but as you move further afield it becomes more difficult to provide the high quality service we want associated with our brand without support. Franchisees provide that support, as owners in the business franchisees are incentivised to provide an excellent service a protect the goodwill of the brand that they have bought into.

  • According to our research the top 10 reasons people buy a franchise are:

1. A turnkey business
2. A proven system
3. Higher likelihood of success
4. Corporate image and brand
5. Easier to obtain funding

6. Training
7. Ongoing support
8. Marketing assistance & expertise
9. An exclusive territory
10. A scalable business through multiple territories

As you would expect from the market leading franchise in our industry we have all of these points covered in considerable detail – ideally these are best explained in a face to face meeting (call us to arrange a visit to our sunny offices in the North West).

  • According to our research the top 10 reasons people buy a franchise are:
  1. A turnkey business – Concept has been trading as a successful franchise network since 2003 (operating pilot areas in 2002) and over this time has managed countless claims nationwide for both domestic and commercial clients. We offer business development and lead generation support through a strategy developed over many years. Our training, mentoring and on-boarding process has been designed to get new franchisees ‘up and running’ as quickly as possible – we know that once you have made your investment in a Concept franchise you want to be trading as quickly as possible, so that’s what we make happen!
  2. A proven system – we can demonstrate the effectiveness of our ISO9001:2015 approved model through the success of our franchisees. We have had franchisees who joined the Network back in 2003 and saw their investment flourish over a decade before exiting at a profit.
  3. A higher likelihood of success – many new businesses outside of the franchise world fail in the first 12 months of trading. We do not have franchisees fail due to a flaw in the business model or demographics of a particular territory as these things are measured and monitored on an ongoing basis. If you undertake the full training program, follow the business blue print and adhere to the operations manual you should see excellent returns on your investment.
  4. Corporate image and brand – the Concept brand has continually evolved over time to ensure we remain current and accessible. To assist in this we have a dedicated in-house design team bolstered by 3rd party marketing professionals who review everything from the brand to the copy in this prospectus (yes really!). We also invest in promoting the brand through a variety of methods including writing articles for trade publications, sponsoring industry events and holding corporate days out. We have even slightly altered our trading name over the years to ensure we correctly positioned in the market to make the most of any opportunities out there.
  5. Easier to obtain funding – we have excellent relationships with high street banks with a franchise department and as Concept is considered such a low risk to lenders we often receive recommendations from our own bank. Depending on the economic climate (Covid temporarily had a big impact on banking) most banks will lend between 50 to 75 percent of the start- up costs of the Concept franchise based on the success of our business model.
  6. Training – we offer one of the most comprehensive industry leading induction courses followed by a Launch Establishment Action Plan (LEAP) development program, to ensure you are ready to make a success of your franchise from day one.
  7. Ongoing support – s, qualified employed surveyors, CII qualified claims handlers, a Network Manager with many years’ experiencConcept franchisees have access to specialist support for all aspects of their business. This is something that means a great deal to us and helps us stand out from the crowd with support being provided by dedicated mentor franchiseee in the franchising and construction industries and a team at Head Office all focused on helping you make your business a success.
  8. Marketing assistance & expertise – this includes access to our in-house graphic designer, a franchisee led business development group and numerous advertising templates all designed to be FCA compliant. We also run significant web based advertising campaigns that include generous pay per click promotions coupled with ongoing search engine optimisation work and a heavy social media presence to support lead generation in your chosen territory.
  9. An exclusive territory – there is not much we can add to this! We have 160 franchise territories throughout the UK all of which are exclusive to the franchise owner for the work they generate in their territory.
  10. A scalable business through multiple territories – this is probably our weakest point because once a franchise territory is sold we cannot sell it again! That said we still have territories available to purchase so if you are interested why not make an appointment and come and see us for a more detailed presentation on the franchise?

Where do Concept Franchisees get Work From?

This is one of the most frequently asked questions by people looking to invest in a franchise business and rightly so – without any work you won’t make much money!
We have wide spread sources of work that include direct advertising in multiple media through to networking in local areas to create ongoing referral relationships.
Many people invest in a franchise with a view to selling it in the future, hopefully for a considerable profit. In order to achieve this you need to add something ‘extra’ to your business that someone could not purchase directly from the Franchisor. This is something we work very closely with our franchisees to accomplish through our LEAP training program and is very much dependent on the creation of local relationships with potential providers of insurance claims.

How Does It Work?

Where do Concept Franchisees get Work From?

The Concept service enables an independent insurance broker to provide an enhanced policyholder experience at the point of an emergency or property claim, whilst providing an additional revenue stream and service benefits to the broker business. Hopefully you have already read the ‘Customer Representative Benefits’ section in this prospectus that explains why insurance brokers choose to work with Concept. Many of the same benefits also apply to estate agents, letting agents and managing agents to provide an enhanced landlord and tenant experience at the point of a property emergency, refurbishment program or insurance claim.

  • To reiterate, the key reasons these organisations love to work with Concept franchisees are:

It is therefore essential that relationships with key partners such as these are developed as soon as possible. Concept Head Office supports franchisee throughout their Concept life by assisting in securing meetings with potential business providers, attending meetings where requested and helping to manage the ongoing relationships with these clients.

It is also worth remembering that as part of the Insurance Solutions Group (ISG) Concept is part of a large family of organisations that can also provide additional services to potential clients that are often a great door opener. For example some of the services that appeal to property agents include the below all of which can be delivered by ISG’s Local Assist division:

Trade Referrals

One of the key drivers to generating work for the Concept network has been referral schemes with tradespeople. Much of the insurance related damage the Concept network handle is caused by either an escape, or ingress of water or roof damage and one of the best ways to find out about this damage is through plumbers and roofers.
Since inception Concept has developed relationships with plumbing and roofing companies at a local level through its franchisees across the UK – these are generally reciprocal relationships where the tradesperson receives a financial incentive to inform Concept of a potential job. We often utilise these tradespeople to provide our own call out solutions through the Local Assist business. We ensure all of the tradespeople we work with have been vetted through our comprehensive online accreditation process.
Trades people are often happy to receive a ‘flat’ referral fee, usually about £50, rather than a percentage of the claim value – this makes them a much more cost effective means of generating enquiries. Head Office has a panel of contractors and can pass you the details for the relevant trades in your chosen territory assist in developing these relationships.

Web Based Advertising (including Social Media)

One of the key drivers to generating work for the Concept network has been referral schemes with tradespeople. Much of the insurance related damage the Concept network handle is caused by either an escape, or ingress of water or roof damage and one of the best ways to find out about this damage is through plumbers and roofers.
Since inception Concept has developed relationships with plumbing and roofing companies at a local level through its franchisees across the UK – these are generally reciprocal relationships where the tradesperson receives a financial incentive to inform Concept of a potential job. We often utilise these tradespeople to provide our own call out solutions through the Local Assist business. We ensure all of the tradespeople we work with have been vetted through our comprehensive online accreditation process.
Trades people are often happy to receive a ‘flat’ referral fee, usually about £50, rather than a percentage of the claim value – this makes them a much more cost effective means of generating enquiries. Head Office has a panel of contractors and can pass you the details for the relevant trades in your chosen territory assist in developing these relationships.

We have now redirected our resources into the web and keep a close eye on what the likes of Google, Safari and Microsoft are doing. We do this partly in-house and partly through out sourced providers to ensure that our website is current and engaging and we have effective search engine optimisation ongoing. We run multiple pay per click advertising campaigns to generate enquiries in varying areas of the country and support this through a social media presence on whatever platforms are fashionable at the time – the core of these are LinkedIn and Facebook.
Generating enquiries through the web in the insurance and property markets is a great way to secure new work and we work with our franchisees to ensure that they are getting a good return on their investment in both time and money.

Networking

Networking is at the core of our business development philosophy. Relationships with insurance brokers, letting agents, trade people and anywhere else can all be built through effective networking. We have had relationships with some referral partners you may consider odd – for example a hairdresser who had used our service and thought it brilliant, passed our local franchisees’ business card to some of her customers and generated quite a few insurance claims for him.
The term ‘networking’ does scare some people and thought of going into a crowded room to make small talk and try and win new business from people that don’t want to talk to you is daunting. But…Concept is there to help and the reality of networking is very different from the description above.
There are 1000’s of networking groups up and down the UK which you can become involved in – some are well known like the Chamber of Commerce or BNI and some more specialist and allow for networking at different events like golf days etc. When you join the Concept franchise we help you identify the best groups for you and we (often a neighboring franchisee) even go along with you to the first few meetings (if you want us to) until you are comfortable. We provide advice and content for discussions and presentations and tailor a big part of our class room based training towards making networking and business development activities simple and easy.

Training & Support

We believe we offer the most comprehensive franchise package available in the industry with particular focus on training and development, ongoing support and securing your investment by building your business into a successful, valuable entity. To do this we pay particular attention to the training we provide which we break down into 4 key parts.

  1. Initial classroom based training – where you will spend time with head office staff and partners learning the fundamentals of our business including system processes, head office schemes, marketing and health and safety awareness.
  2. Mentor training/induction – this is a training session with a mentor franchisee where you will be immersed in all the operational aspects of the business that include everything from operating the IT system to attending site surveys and liaising with insurers and potential referral partners – you can’t learn to swim without getting wet! This course concludes with a multiple choice exam, which once passed, allows us to certify you as qualified to undertake insurance claims management as a Concept franchisee.
  3. Launch Establishment Action Plan (LEAP) training – this is a training program that starts once you begin trading where you will gain the knowledge, skills, attitude & habits of a successful business owner plus additional teaching on how to get out of your comfort zones and into the learning zone. This is to ensure that you achieve the targets included in your business plan/forecasts through a structured approach.
  4. 3rd Party training – these are courses provided by approved specialist suppliers and focus on developing the skills & knowledge of our franchisees in subjects such as ‘drying’ and ‘flood management’. Franchisees usually attend these courses after they have been trading 12 months or more and have a solid grasp of the business fundamentals.

We understand that one of the core reasons people choose to purchase a franchise rather than start up their own business is the support that the franchisor can offer. For this reason and because we are committed to seeing our franchisees succeed, through the use of ‘Best Practice’ processes we have created, we have invested in a considerable support network – this includes:

  • Operational support from your Mentor, Network Manager, Franchisee Focus Groups, IT Support Company and Contact Centre. We also have a vast array of documents to support the Operations Manual with topic specific guidance on every aspect of the franchise.
  • Technical support from qualified field based surveyors, CII qualified claims handlers and Mentors. For your first few site visits we will accompany you to site and assist you in dealing with the customer, scheduling the repair/renovation work and using the system.
  • Sales/marketing business development support from our Network Manager, Graphic Designer and 3rd party web specialists along with your Mentor.
  • As a Concept franchisee you should not find yourself in a situation where you do not have someone you can call upon to help you out regardless of how big or small the issue maybe. Concept’s success is directly related to your success.

Training & Support

We are looking for enthusiastic motivated individuals with the ability to manage projects and develop professional relationships. You will need to be proactive, building local relationships in your territory with clients, customers, loss adjusters, insurers and contractors.
You do not need to know how to run a business or even have experience in the insurance or building sectors to join Concept, as we provide full training and ongoing support to deal with this. What we do insist upon is a commitment to customer service coupled with a professional, ethical nature and overall, a commitment and determination to succeed.

What Next?

If you would like to learn more about the Concept Claim Solutions franchise opportunity why not come and visit us for a face to face discussion.
Contact us at Solutions House, Fairways Business Park, Fulwood, Preston, PR2 9LF
or email us at: enquiries@conceptpropertyclaims.co.uk.
Alternatively give us a call on 0800 037 0315 for an informal chat about what it’s like to be part of our successful franchise Network.