In yesterday’s newsletter, Koert Slik broke his silence on the decline of All Class Insurance Brokers and the part he played. In the second part of his story, Koert explores the ramifications. Read part one here.
“Why Leroy [Bowmaker, the managing director of All Class Insurance] felt that using my skills to create an authorised representative strategy given that he knew the company was in a poor financial state, is anybody’s guess,” says Koert Slik, Chiswick Consultants MD.
“Was it desperation that he sought a fresh way of bring revenue into the business that could eventually help him out of the business? I don’t know. Was he looking at my assistance, needing someone to help his family out? I don’t know.”
At the time of liquidation, All Class owed approximately $1.9m to around 51 creditors, including major insurers and premium funders. As reported by Insurance Business,, All Class’ receivers PPB Advisory sold the bulk of company’s client book to Consolidated Insurances while a portion has been retained by All Class’ second biggest creditor Hollard Insurance, with which it had a binder agreement.
Keen to put the whole saga behind him, Koert chalks it up to a bad case of bad luck but he still unsure what impact the incident has had on his own reputation..
“Time will tell if this affected my reputation going forward but it’s very difficult to understand what a person is doing with his business unless you are there. In hindsight, you can do research on the company but at that moment, if it stacks up on face value, you look at it as an opportunity.”
Even so, the incident has not dissuaded Koert from the insurance industry.
“I’ve had contracts with a number of people and you come across challenges from time to time. This is the first time I have been involved in this sort of situation, but
Leroy is not the first person to undertake activities that are later investigated by ASIC – and he won’t be the last. However, I firmly believe Leroy is in the minority. The majority of brokers are hardworking and honest.”