Ben Bolton, MD at Gracechurch, shares his thoughts on Convex’s move to Lloyd’s and how their brand journey is ironically similar to the 1960s band ‘The Grateful Dead.’
‘They’re just getting the old (Catlin) band back together.’ Was the slightly derisive comment I regularly heard from competitors when Convex was set up…alongside ‘they just won’t last.’
As Convex has grown and grown, I can’t help but compare them to the Grateful Dead, one of the most commercially successful rock bands of all time – maybe not as high profile as some legendary bands and having some challenging early years – but still grossing over $250m dollars per annum…25 years after the band split. Their brilliant marketing, licensing and focus on the Deadhead fans’ ‘live experiences’ all have parallels with Convex’s focus on relationships, people and savvy marketing.
So the provisional announcement that Convex will be entering Lloyd’s is no doubt a well-received statement of confidence in the venerable London insurance institution, but is it a smart move for Convex?
Convex has been hugely successful without a Lloyd’s platform, albeit that a Lloyd’s syndicate was never ruled out by Stephen Catlin and Paul Brand. So does Convex really need Lloyd’s?
Well clearly not financially, but let’s not forget that ‘heart is as important as head’ for Stephen Catlin and the original Catlin business was built on a strong set of values and commanded a significant brand ‘goodwill’ premium when it was sold, all down to his leadership, so the soft stuff isn’t just fluff.
There are some obvious hard advantages for Convex such as licenses (which has been a challenge for the business in growing its international footprint)…and there may well be some clear brand pay-offs too.
Lloyd’s is still a well-respected brand especially internationally and the US market (and maybe even Trump?) has a positive view of a Market that has historically ‘stepped up and paid’ in the US. So the positive goodwill for Convex, generated from the co-branding element, should not be underestimated. This is also crucial for a now large business that needs to grow into a respected Global brand and compete with the leading heavyweight brands in the insurance universe.
Stephen Catlin himself is an iconic Global insurance leader, well known in international boardrooms and Government circles, so this could be a not-insignificant factor in Convex building more ‘soft power’ and brand presence around the globe.
Finally, with a new Chair and CEO coming into Lloyd’s (and some noticeably ‘progressive’ appointments recently) there is a sense that Lloyd’s might be on a mission to transform into something much better positioned for the modern world – all of which could align very nicely with Convex’s fresh, modern specialty insurance proposition.
Clever timing has been Catlin and Brand’s trademark and the co-branding opportunity with a rejuvenated Lloyd’s could be yet another business masterstroke for the ‘Catlin and Brando’ duo.
So, I guess that getting the band back together wasn’t such a bad idea after all.