Scots insurance broker boss outlines bid to double local operation and create jobs
“The insurance and risk-management industry is witnessing a paradigm shift.”
Gordon Duncan is a partner at Lockton and the head of its corporate division in Scotland, where it has offices on Glasgow’s St Vincent Street. The US-headquartered firm, which was founded by Jack Lockton in 1966 and remains family owned, says it is the world's largest independent insurance brokerage, present in more than 140 locations, with in excess of 65,000 clients and nearly 11,000 staff. It last year reported global revenue of $3.1 billion (£2.4bn), up from $2.7bn in the previous 12 months.
Duncan has been with the group for more than a decade, and says its clients are involved in sectors “including but not restricted to” construction, energy, food and drink, haulage/logistics, hotel and leisure, manufacturing, property and retail.
He previously also spent about ten years at Marsh, an NYC-based specialist in insurance broking and risk-management, where his roles included national corporate leader for Scotland. Marsh said in April that global commercial insurance rates increased by 1 per cent in the first quarter of 2024, down from a 2 per cent jump in the last three months of 2023, with the UK among regions where rates on average declined by 2 per cent.
Can you explain what your role leading the corporate division of Lockton Scotland entails – and how has your career progressed to date?
In line with the Lockton mantra, my predominant role is serving our clients to administer all of their insurance and risk-management requirements. I am constantly being proactive to provide clients with options, so we can always achieve the best possible result for them and their specific needs.
As leader of Lockton’s Scottish operation, my role is extended to the strategic, financial, operational, and compliance performance of the business. Lockton has a thirst for growth, and I am also actively involved in positioning the business to attract new clients, thus maintaining our proven track record of double-digit growth.
You have previously examined the specifics of insuring Scotch whisky firms – what are the distinct needs of the Scottish market and how can companies strengthen their risk-management strategies?
Each business is different – and should be treated so. Why buy an off-the-shelf product if you can buy something bespoke for the same price? Establishing a company’s attitude towards risk, their appetite to absorb risk, their risk-tolerance levels, combined with their perception of insurance as a protection to their balance sheet, are all vital to understand in order to design the optimum programme for each client.
Having an effective, robust risk-management strategy is a massive rating factor for insurers, and companies should enjoy differential rates if they (or their broker) are able to articulate this.
How can Lockton help firms navigate the challenging economic conditions in Scotland?
We recognise that, for a number of sectors, costs are exceptionally tight. We work collaboratively with clients to control/reduce premiums. Lockton wishes to add value and business benefit to clients/future clients and by working in partnership, we can achieve this objective.
Amid high-profile cyber attacks on firms in recent years, what is the role of brokers to help mitigate such risks?
Ransomware has become more problematic due to the value in extorting and publishing sensitive data. Ransomware attacks are devastating and can happen in an instant. One simple click of a link in a hacker’s email can potentially inflict serious operational and financial harm. Resilient cyber security infrastructures are less likely to be compromised by cyber risks. Since cyber exposures have increased in recent years, premiums have too. Accordingly, establishing a resilient cybersecurity infrastructure is the best and only method for reducing cyber insurance premiums.
Brokers’ cyber teams should have visibility of cyber claims trends and understand insurers’ risk concerns as well as the mitigating measures they will want to see in place. Brokers should therefore be able to advise businesses on the best way to navigate the underwriting process and achieve the best possible outcome.
Can you give more details on how Lockton and the broader insurance sector are adopting technology?
The insurance and risk-management industry is witnessing a paradigm shift, driven by technological advancements, changing customer expectations, and a more competitive marketplace. The days of traditional brokering, reliant on paper documents and manual processes, are giving way to a new era of digital disruption. Clients now expect instant access to information, personalised services, and streamlined processes. This shift necessitates a strategic approach to digitisation to remain relevant and competitive.
Lockton is recognising the need to adapt and lead in this changing landscape, and, in order to deliver a truly differentiated experience for our clients, we are actively developing ways to leverage technology tools, including those in the process of being built today, to deliver a consistent and seamless experience for our clients, across all our business units and products.
We are also actively engaging with insurtechs [insurance tech firms] whose objectives align with our overarching digitisation strategy. Such collaborations should enable the expeditious advancement of our digital initiatives, and facilitate our commitment to enhancing our client services.
What is your aim now for Lockton’s Scottish operation in the coming years?
We appreciate our client loyalty and will continue to strive to deliver exceptional results for them. We are really proud of our global 97 per cent client retention rate, and have many long-standing relationships with valued clients. Beyond this, our aim is to double the size of the business over the next five years. As we grow, we want to ensure Lockton’s culture remains, and that we continue attracting the very best talent in the market.
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