One of the UK's largest independent commercial insurance brokers is setting its sights on acquiring Hereford firms to increase its foothold in the region.

Opus Insurance, which has 12 regional HQs around the UK, has just appointed Keith Runciman as group development director tasked with building its market share in Hereford.

He said that in his new role he is searching for potential acquisition targets in the small to medium-sized broking arena and is keen to talk to firms with an established local or regional client base.

The acquisition drive comes against a background of changes and challenges facing the broker industry which many smaller firms could struggle to meet.

In response to an EU directive, all brokers must be fully compliant with the FSA's pending regulations governing competence, professional conduct and training, by February 2005.

Mr Runciman said: "This is the most daunting thing to happen to the industry in decades and as such will put a big strain on smaller brokers. The shake-up could lead many brokers in the region to consider leaving the industry and selling their businesses. If so we are in a strong position to offer a helping hand and would like to hear from them."

Opus was formed in 1998 through a management buy-out of the UK branch network of the Heath insurance broking group. It is among the largest independent insurance brokers in the UK and is a Lloyd's broker.

The firm which has embraced the British Insurance Brokers' Association's online training and competency system, specialises in commercial and personal-lines insurance broking, health and safety management services, employee benefit and personal financial planning consultancy.

To contact Keith Runciman email: keith.runciman@opuscompany.com