Follow the Advice ep3 - Matt Meader

Matt Meader, owner of Meader Risk Solutions, specializes in advising the hospitality industry. He discusses the challenges faced by businesses in this sector, including staffing issues due to Brexit and increased costs from COVID-19. He also mentions the lack of government support for many businesses. Matt believes that the insurance industry needs to be more sympathetic and tailor its services to individual businesses. He emphasizes the importance of customer service and suggests that embracing technology, such as AI, can help bridge the skills gap and enhance the industry's reputation. Matt also discusses the need for better customer understanding of what insurance brokers do and suggests that technology, like TikTok, can be used to educate and engage clients. He concludes that integrating technology into the client's business can strengthen relationships and improve efficiency. Hello and welcome to the Follow the Advice podcast. I'm David Brown. In this episode, I'll be talking with Matt Meader, owner of Meader Risk Solutions. Matt set up the business in the spring of 2023, and he specialises in the hospitality industry, advising a number of London and the world's top 100 restaurants and bars. When Matt's not advising clients, he spends his time watching and playing as many sports as he can. And he does admit to being an avid, latent Orient fan, spending most of his Saturdays at Brisbane Road. Matt and his fiancee try to get away a couple of times a year with Dubai being the most probable destination. And he does tell me that whilst he likes the structure, his fiancee keeps reminding him that she would like to see other parts of the world. I really hope you enjoy this discussion. Matt, welcome to the podcast. It's absolutely fantastic to have you here and thanks for joining me. I'm really looking forward to our chat today. You set up the business around a year ago in the spring of 2023. And I know that you spend a lot of time with customers in the hospitality, retail and leisure sectors. And it strikes me that those are industries which has gone through a massive amount of disruption and some real tough times over the last few years. So I was interested, I guess, just in starting with what have you seen out there and what's the landscape like for these businesses? Because I think it would be really interesting to get to understand more about that. Yeah, absolutely. I think we'll probably come on to it later on this conversation, but those challenges are a large part of why I've ended up setting up my own business. So as you say, I only deal with the hospitality industry. And it's been a really tough time. You know, we had Brexit, which caused numerous staffing issues with employees going back to their home countries, which then resulted in increased wage costs for the restaurants themselves, for the businesses themselves. We obviously had COVID as much as I don't want to bring it back up. We had COVID, which was an absolute nightmare. And we're now seeing the sort of legacy effects of that, you know, in some cases, landlords were very generous, but they're now wanting their rent back. But with the increased costs from COVID, Brexit, etc., the margins are being squeezed. So yeah, that was part of the reason that I set the business up. It was an industry that's in need. And we take all of that into account when we look at the sort of risk management program. Yeah, that makes sense. I mean, this isn't a political podcast, right? But from a government support point of view, what are customers saying to you about the support they've had? And, you know, is that enough? Is it not enough? What's the word out there? Probably can't use the words that some of them have used recently on this call. But just a couple of weeks back, I met with a client, it's a family-run business, and it's been around since the mid-90s. And they're absolutely struggling. They said they didn't get a penny in support. And yeah, I think I'll probably have to leave the answer there because I can't tell you what went on afterwards. But that's just the flavour of, you know, 80% of the industry is saying the exact same thing. And that must be tough. Yeah, it's tough running these businesses at the best of times. But given what you said, you know, about everything that these guys have been through, yeah, that's going to be really tough for sure. So thinking about that, you know, those sectors from an insurance point of view, Matt, or a financial services point of view, what more could our industry do, do you think, to help support businesses like that? Yeah, so I think as an industry, as an industry in general, we need to be a bit more sympathetic on a sort of case-by-case basis. Because, you know, there are some, there's an influx of money from, from, we've seen a lot of Middle East ventures coming across to the UK, where money is no issue. They want to be covered as best as they can, which, yeah, absolutely great from a financial advice perspective. Perfect. But then you've also got, as I used the example earlier in the call, the sort of family run individual single site business, whereby the margins have been squeezed so much. What are you happy to give up from a coverage perspective? As opposed to just solely looking at the revenue, as a brokerage that you earn from that client and looking to drive the business forwards. Yeah, that makes sense. So very much horses for courses, I guess, is what I'm hearing. Yeah, what are the businesses that you talk to, or business owners that you talk to, what do they say about our industry and, you know, how we behave towards them? It's an education piece. A lot of clients will look at you and think, well, prospects, not so much clients, because once they're on board, you can explain a little bit better. But they'll view you, they view insurance as just an industry. They don't break it down as insurer and then insurance advisor. They look at insurance as a whole. So sometimes, you know, it's you guys don't pay out and then you've got to sort of explain, look, no, I'm the advisor. I'm here to get it right. If it is correct and you act as per your policy terms and conditions, your policy will pay out. So the insurance name is terrible at the moment. And again, it's probably a legacy effect of COVID where that's concerned. Yeah, and like I say, insurance hasn't had a brilliant brand or reputation over the decades. So, yeah, I think we could do an awful lot more as an industry to enhance our reputation, for sure. So, yeah, so what do you see on the horizon, Matt, that, you know, in our sector that you think we need to be focusing on more or spending more time thinking about? So I think customer service, customer service, I think we're seeing a lot more, particularly the larger brokers outsourcing of certain functions, outsourcing certain functions, but then also not replacing the talent with young employees. It's an ageing industry. And from my experience, the youngsters that come in, whether that's apprenticeship schemes and things like that, don't hang around very long. So I think that the rise of AI is a huge opportunity there because that sort of sits nicely with the young demographic. So if as advisors, we can embrace technology, it may entice youngsters in again. But then again, I think AI, whilst it's a huge opportunity, it's a massive challenge because, of course, all large businesses are trying to cut costs. Now, if you can have a piece of technology that can do parts or some of the job for you, people are going to take advantage of that. So, yeah, I think the skills gap, I think getting the youngsters in and training them up, but also embracing technology without abusing technology is going to be the future. I'm thinking back to what you said a minute ago about the customer perception of our industry, right? And I'm wondering even if there's some way of linking technology into this. I don't know, but I've done a few of these podcasts already, right, or these interviews, and I haven't actually asked anyone, do customers typically understand what an insurance broker does? Because I've read a lot about that, and I hear a lot about that, that not everyone really seems to appreciate what a broker is there to do. And I'm wondering if there's more we need to do there, and again, how technology might potentially help us kind of educate the audience better. Yeah, potentially. I think in my experience, I find that the industry I work in, it's quite a small circle. So if I'm speaking to an SD of a restaurant group over here, he knows someone over there who knows the general manager here, and we all sort of get in touch with each other. So they still have an idea of what I do as a broker and an advisor. But absolutely, there are also prospects that I go and see, and then the first thing they ask me is, well, how much are you going to quote me? It's like, no, let me go to the market and obtain. So yeah, technology probably will pay on a wider scale. Technology probably will need to play a bigger part. And I think that we're seeing that with... So I don't use TikTok for my business yet. But just naturally, because of what I'm doing on my phone from an insurance perspective, on my personal TikTok, I'm getting a lot of insurance companies now popping up. Insurance companies, a few insurance brokers. And again, I think it's one of those things we've just got to embrace, you know? We don't do it enough. But again, everybody spends now, whether you're a business owner or a footballer, whatever industry you work in, your phone, a lot of the time, is in your hand. So if you can get that in front of these business owners, and yeah, absolutely. I think technology will play a huge part in that, because as opposed to speaking to people, you can find the answer within a second on your phone now. But yeah, no, absolutely. I think technology will play a big part in that. Yeah, I agree. I think it has to. So the idea of almost integrating so your technology in your business and somehow getting that into the client's business, right? So the two, I'm going to say the two systems talk to one another, okay? I know that's a really simplistic view of the world, but it strikes me as an outsider looking in that that has the potential for massive benefit for not only the client, obviously, but for you to strengthen your relationship with them. Is that even possible? Um, I think that's a difficult one. It's a difficult one, because yes, you know, without trying to get too technical, things like policy documentation and to whom it may concern letters and things like that. If you could have a hub for the client, they don't have to keep asking you, they can access that hub. That's great. But I think if you put too much, again, I work within a niche sector, okay? So I'm not dealing with huge corporations. Those guys that I deal with, would much rather me be on the end of the phone as opposed to try and get hold of me via some technological means. You know, they don't want to speak to an AI bot on a web chat. They want to pick the phone up and say, Matt had a problem. Am I covered? Yes or no? Or can you come and see me today? No problem. That's actually a service I offer. So by introducing too much technology, I personally would be going against the grain and doing something that, you know, I'm moving away from the big brokerages to provide that service. But absolutely, I think if you're the big brokers, you've got to utilize it. Definitely. Yeah, so that's a really nice link into something else I wanted to talk to you about, which is, so I noticed from your LinkedIn content, you focus heavily on guidance for customers. And it seems to me that's potentially your brand, right? That's what you offer. So I was interested in what it was that drove you for that to be, you know, such a focus for your business, Matt. Yeah, so I think it's a differentiator. Going back, I could give you my whole backstory, but 12 years ago, when I started in insurance, I met a guy who has long been my mentor. And he said something to me that really, really has stuck with me to this day. And he said, you know, there's hundreds and hundreds of thousands of insurance brokers out there, but there's not many insurance advisors, risk advisors. So we used to switch, he taught me to switch up the conversation. Forget the word insurance. The word insurance doesn't exist. What we do is we talk about health and safety. We talk about risk management and we talk about the business. What comes out at the end of that is an insurance policy that protects those risks that we have just discussed. So I like to put guidance out there. Because as I say, you know, it's not to get business. It's not, it's not for that. It's just so my clients who have got me on LinkedIn can see, can have access to information without having to ask me for it. And I put a post up about business continuity planning. I saw an existing client a few weeks back. They had a survey done and business continuity planning came up that they needed. So I just sent them a LinkedIn post and said, look, there's all the guidance you need. It's all on there. And they managed to put together a business continuity plan based off of the information that I provided in the LinkedIn post. So it's all just about trying to take the conversation away from I'm an insurance broker. I can save you money to let's look at health and safety. Let's look at health and safety. Let's look at the latest regulations. Let's look at the legislation that's being brought in. How does it affect your business? And then let me deal with the insurance policy that covers you against all of those new and emerging existing risks. Yeah, and there's value in that for clients, right? Or even for potential clients in that guidance being out there. So I get that. I think I probably know the answer to this. So I'm going to ask anyway. So again, I read a lot on LinkedIn. From brokers or customers who are very product and price focused and let's say less interested in guidance, right? Not that they're not interested, but they're less interested. So what's your kind of philosophy when you come across a customer like that in terms of how you approach them, Matt? Turn them down to be completely frank. So we've had multiple occasions where we've gone to see a prospect and the first question is, we're looking to save money and it's a complete no. So the philosophy of my business is actually just cover over cost. As cliche as it sounds, it's cover over cost. So being a specialist in the industry, there is absolutely no point on looking at someone else's policy schedule and trying to beat it for price. You could have a charcoal grill in the restaurant, let's say. Insurers might class that as high risk, but if you've not declared that to your previous broker because they've not been down and seen the site, you're actually not covered. So there's no point in beating that price because it's irrelevant. So what we do is we go in, we will quote on a, let's call it fully comprehensive basis. So with a load of bespoke extensions and enhancements for your industry. And then at the end of that, if cost is an issue, we will then say, okay, what would you be willing to take out to allow this to fit into budget? But what we're not going to do is do a like for like quote on what you had last year because that's not covering you as it needs to cover you. So it's always cover over cost. But that is why we look for owner led businesses because they tend to have much more of a vested interest in making sure that cover is correct because if the insurance policy doesn't respond, it's their own pocket as much of a sort of scaremongering thing. That sounds it's their own pocket that's going to be hurt. So we protect that for them as opposed to a procurement exercise based purely on cost. Yeah, I get that. There's more of a vested interest for sure. Yeah, that makes sense. So I know at the moment, Matt, you focus predominantly on London and Hertfordshire. What are the plans for the future to potentially grow beyond that, if at all? So I've got, so I need to be conscious of the service I offer is predominantly hospitality, but it's 100% hospitality. So there are no plans for myself to branch out with that. But there are plans already in place to have another division specialising in another sector. That's still very early stages, so I won't say too much. But that will again be led by the specialist in that sector. So whilst the business, whilst there are plans for the business to grow, it will be done in the exact same way that I started it. You know, I've got the background in hospitality. I deal with hospitality and there will be a potential new division, but it will be led by somebody that specialises in that division. So it will be a very targeted niche approach. But yes, there are plans to grow. OK, well, of course, I wish you luck with that. But I like the philosophy. I like the philosophy that says you're an expert in this. You're not going to try and do something else that you don't know a lot about or understand. So that makes perfect sense to me. So that's a nice link, Matt, to thinking about business philosophy generally. I'm interested in your take on the characteristics of a successful business owner in our sector. Right, so if I was to ask you to pick three things that you think makes a real successful business owner in our sector, what would they be? So I think drive being the first one. Whatever you're going to do, you have to be driven because it's tough, you know, especially the first stage is tough. You've got to be driven. And I'll throw resilience in there, actually. And I'm going to cheat. I'm going to give you four. But I'm throwing resilience in there because, as I say, it's tough, but it's so rewarding. You've just got to be able to bounce back. So the second one would be compassion. Now, that's two problems. So for the moment, for me, it's clients. It's, as I say, you've got to treat each client on its individual merit. What state are they in as a business? So, you know, that's what keeps the client on board, right? That trust that you build up with compassion. And finally, knowledge. If you're going to go on your own or you're going to set up a business, a lot of the decisions are obviously going to lie with yourself. In my instance, I'm doing it by myself. So I need the knowledge of the insurance industry, but also the knowledge of the sector, the hospitality sector. So just if you're thinking about doing it, just learn, learn, learn, research, research, research. It's like being back at school, but just get your head in the books, online, watch videos, just just just absorb as much knowledge as you can. I love that you gave me four. Thirty three percent extra for you. Thank you for that. I mean, the compassion one's brilliant. I mean, it's a great set of characteristics, but the compassion was brilliant because it talks about where we started today with everything that's going on in the hospitality sector and the pressure that these guys have been under. So that, to be fair, that's confirmed really strongly in everything you've said today, Matt. Tell me a little bit more about this idea of niching and having a specialism. So I know it's probably impossible to put a number on it, right? But what extra value does that generate for you? Do you think by being a specialist? Again, yeah, you're right. It's very tough to put to put a number on that. I think it's all I've known, so it's very difficult to answer that. However, what I find with insurance, a lot of so first of all, it's a great little ecosystem because, as I say, everybody, if you work within an industry, especially somewhere like London, everybody knows everybody. So from a selfish perspective, you do a good job, they'll refer you to their friend who potentially had an issue or is opening a restaurant. So from a value perspective, it's like having your own referral network. But also, you know, we see restaurants and bars or hospitality in general that have claims issues. You know, they'll then get me involved because word of mouth and I'll look at it and it's just, it's from a generalist broker who one day might be dealing with a contractor, a building contractor, next day restaurant. They don't then understand what a trunk system is. These words might mean nothing to a lot of people on the call, but trunk systems and fire suppression systems. So all of a sudden, these clients go, whoa, I'm underinsured and I didn't even know. That's because your broker didn't know. So they're not going to ask the right questions to get the right answers. So the value, you almost can't put a number on it because all it's doing is it's just saying this is going to be correct. If you want it correct, come with me. If you don't, stay where you are and take the risk. Yeah, you're just showing off now. Yeah, the thing is, as I say, because I've immersed myself in the sector, I know the sector just as well as I know the insurance sector. So, you know, it's a sector that I'm very, very interested in. I should caveat that I was always interested in the hospitality scene, particularly working in London as a youngster. You go out to all of a sudden these restaurants and bars that you used to go to, you're now looking at insuring and you just know them. So you're interested in in the places you go, right? So it's not hard work is what I'm trying to say. Really, I love it. You read my mind. I was going to, as we start to wrap up towards the end of the chat today, I was going to go back to the beginning of where this all began for you and ask you about, you know, what was your motivation for getting into insurance and broking in the first place? You might have hinted about hinted at that moment. Tell me a bit about that. Yeah, I think we can probably probably take it back a little step further and use the old cliche of I fell into insurance. I really wanted to work in the city and I was working when I came straight out of school, I was working for a computer company. But the first opportunity that came up at an insurance broker in the city, I went for. And it was an account handling role. But five minutes into the interview with the mentor that I mentioned a little while back, he said, no, I want you to be an account executive with me, trainee account executive. And the gentleman in question was sort of the hospitality guru at the time. Any big London restaurant, top 100 restaurant, he either insured it or knew the person there. So he took me on with him. But because of my interest in the industry, it was a very easy transition. You know, and insurance is not the most exciting thing if you look at it in isolation. So if you can work in an industry in a niche that you enjoy, it makes the whole thing seamless. You know, you want to have a meeting with one of your clients. They'll say, right, we'll do it at lunch, over lunch at my place. And you're going to a nice London restaurant for a meeting. You know, you're not sitting a grey office block somewhere speaking to somebody that, you know, insurance is bottom of their priority list. So it's just a good industry to work in. And it has so many upsides. Fabulous. What's not to like about lunch with a client at their place? Where do I sign up for that? Matt, that's absolutely fantastic. I have one final question for you, given that you're, you know, you've started on this journey of setting up your own business relatively recently. If there's someone out there right now listening to this who's thinking about it but is undecided, what advice would you give them? Speak to as many people as you can. But if you're thinking about it, you've made your mind up. That was the one piece of advice that I got at the very beginning. It was if you're already if you're already in that mindset, do it. You know, make sure, obviously, your finances, et cetera, all add up. But if your head is already in that space, do it. Because it is the most rewarding. It's tough, it's stressful, but it's the most rewarding experience of my life. And I used to speak to people in their 50s that would say, I wish I'd done this 10 years earlier. And then I speak to people in their 40s and they'd say, I wish I'd done this 10 years earlier. I'd done it when I was 30. And I would say the same thing. I wish I'd done it. You know, obviously, I needed the knowledge and the experience behind me. But I wish I'd done this at the very first opportunity that I could. So speak to as many people if they want to speak to me, if you're going to release my details, I'm happy to speak to them and have a chat. So, yes, just speak to as many people who have done it and you won't regret it. Brilliant advice, Matt. Thank you. That seems like a great note. A real positive high at the end there. So thank you for that. Matt, this has been fantastic. The time has flown by, as it always does when I chat with people. So I've thoroughly enjoyed chatting to you. I hope you have likewise. And I hope our listeners do as well. It goes without saying, I wish you all the very best with the business and with the future plans to expand as you touch briefly on as well. I really hope it goes ever so well for you. See you, David. What a fantastic conversation. I really hope you enjoyed that. You've been listening to Follow the Advice. If you'd like to get in touch with me, you'll find me on LinkedIn. Just search for David Brown Problem Solver. You can listen to other episodes of the podcast on audio.com. And if you'd like to check out my video content, you'll find me on YouTube at Skoosh Consulting. That's S-K-O-O-S-H. If you want to know what that means, visit my website at www.itsaskoosh.com. Thanks again for listening. And I hope to see you all soon.