EPISODE 46 – Scaling Specialist Advice: How MBS Built Australia’s Largest Risk Advice Business – with Drew Burden, MBS Insurance

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In this episode of the Trusted Adviser Podcast, Rob Pyne sits down with Drew Burden, Partner and Co-CEO of MBS Insurance, to discuss the impressive growth and scaling strategies of MBS, an insurance specialist firm. He shares insights on the importance of technology, automation, and a strong team structure in driving business success. Drew emphasizes the need for personalized client engagement and the challenges faced in the insurance market, while also highlighting the future opportunities for growth in the industry. In this conversation, Drew Burden discusses the evolution of his business, focusing on enhancing underwriting efficiency, building strong partnerships with insurers, and exploring minority investments in risk practices. He emphasizes the importance of intensive onboarding for new partners and the value of equity access for talent retention. Drew also shares future ambitions to serve a larger group of advisors and reflects on lessons learned from early acquisitions, highlighting the significance of quality over price in business transactions.

 

LISTEN

SHOW NOTES

Topics Discussed

  • Building a specialist advice business through focus and long-term thinking.
  • Scaling MBS from seven staff to a national team of more than 100.
  • Hiring exceptional people and investing ahead of growth.
  • The Flywheel Effect and quarterly strategic planning.
  • Developing proprietary technology to automate insurance advice.
  • Using Salesforce and data automation to improve adviser productivity.
  • Creating stronger partnerships with insurers for better client outcomes.
  • Why specialist insurance advice delivers better outcomes than generalist advice.
  • Minority investments in risk advice businesses and partnership models.
  • Equity ownership as a driver of culture, alignment and retention.
  • Supporting advisers through technology rather than replacing them.
  • Opportunities for the thousands of wealth advisers who write only occasional insurance business.
  • Lessons learned from acquisitions, growth and building a scalable advice business.

 

Episode Highlights

(Timestamps are  approximate)

  • [00:00] – Introducing Drew Burden and the 20-year journey of MBS
  • [02:00] – How MBS grew from 1,500 clients to more than 25,000
  • [04:15] – Three strategic decisions that transformed the business
  • [10:20] – Why MBS invested heavily in proprietary technology
  • [15:20] – Automating insurance data and eliminating repetitive work
  • [19:00] – Increasing adviser productivity through better systems
  • [21:40] – The evolution of automated Statements of Advice
  • [25:50] – Why MBS advisers consistently outperform the broader market
  • [29:30] – Building stronger partnerships with insurers
  • [33:00] – Joint ventures and minority investments in specialist firms
  • [38:20] – The intensive 90-day onboarding process for partner firms
  • [41:20] – Merchant Investment Management’s investment in MBS
  • [44:10] – The opportunity hidden within orphan insurance clients
  • [47:20] – Creating an ownership culture through employee equity
  • [51:20] – The future platform vision for Australia’s risk advisers
  • [54:45] – Lessons from acquisitions and two decades of growth

 

Quotes

  • “We’re specialists. We haven’t deviated from that since inception.” – Drew Burden
  • “If you wanted to truly scale, go and find someone worth more than the role demands and pay them what they’re worth.” – Drew Burden
  • “Technology should support great processes. It shouldn’t replace them.” – Rob Pyne
  • “Clients need personalised, tailored advice. Our job is to help advisers spend more time giving it.” – Drew Burden
  • “Momentum is super powerful. When clients receive a great experience, it creates the confidence for more referrals.” – Drew Burden
  • “Everyone understands the pathway to equity, the formula and what success looks like.” – Drew Burden
  • “If you buy something that isn’t great, it doesn’t matter how cheap it is.” – Drew Burden
  • “Nothing ventured, nothing gained.” – Drew Burden

 

Key Takeaways

  • MBS has grown from $8 million in premiums to $250 million.
  • The firm has expanded from 1,500 clients to 25,000 in ten years.
  • Strategic hiring of experienced leaders accelerated growth and improved operational capability.
  • The business expanded from seven employees in one office to a national team of around 100 people.
  • Creating a flywheel effect has driven consistent growth.
  • Quarterly planning and disciplined execution helped MBS scale without losing focus.
  • Technology should support well-defined processes, not replace them.
  • Proprietary technology has dramatically increased adviser productivity by automating repetitive processes.
  • Automated workflows enable advisers to spend significantly more time with clients.
  • Maintaining data integrity is essential for business growth.
  • Accurate live policy data eliminated manual administration and allowed staff to move into higher-value roles.
  • The insurance market still has significant untapped potential.
  • MBS believes specialist insurance advice consistently delivers better client outcomes than generalist advice.
  • Building strong relationships with insurers enhances business opportunities. We’ve tried to work with them and feed them information to improve efficiency.
  • It’s not acceptable for advisors to give insurers peace of their mind.
  • We need to understand the challenges insurers are having.
  • It’s important to have relationships with insurers. Strong partnerships with insurers have improved underwriting, service standards and claims outcomes.
  • The next stage of growth is building technology that supports thousands of advisers who write insurance as part of broader financial advice.
  • Employee equity has strengthened alignment, retention and long-term business culture.
  • Minority investments allow specialist firms to retain independence while leveraging MBS technology, systems and scale.
  • If you buy something that isn’t great, it doesn’t matter the price. Successful acquisitions depend far more on quality assets and quality people than simply buying at a low price.
  • Consistent incremental improvement over many years has been a major contributor to MBS’s long-term success.
  • Nothing ventured, nothing gained.
  • We want to share in it with them.
  • We want those firms to be growing.
  • It’s about alignment, motivation, and momentum.

 

Resources & Links

 

Show notes and transcript

For the full show notes and transcript from this episode, head to the episode page on The Trusted Adviser Website here.

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