Life in the fast lane

In July 2009, MCE Insurance won Personal Lines Broker of the Year at the British Insurance Awards, an award handed over at the Royal Albert Hall. It then followed this up by winning Intermediary of the Year and Marketing Campaign of the Year at the UK Broker Awards, hosted in London in September, and this trend-setting broker is not resting on its laurels.

Director and founder Michael Edwards, is determined to bring across the point that his company doesn't enter awards for the sake of it - only when it has something to shout about.

This year has seen a 20% increase in motorbike policies, which accounts for almost 90% of the broker's business. The broker projects 110,000 motorbike policies by the end of December. This represents around 15% of the motorcycle market where it competes with the likes of Carole Nash, Devitt and Swinton.

In addition, it is in the middle of a comprehensive marketing effort which includes sponsorship of the British Superbike Championship. The growth must have been satisfying after deciding to keep going at the time of the acquisition boom in 2006 and 2007.

The Edwards' family, which includes Julian's brother Dominic as head of affiliate marketing, could have decided to cash in on their hard work and sell. Instead a new level of management was brought in to drive the business to greater heights.

Julian says: "We mapped out a vision of organic growth. It took us 18 months to fill all the positions and we now have a management team in place capable of running a business twice the size."

Michael, who turned 60 in September, is candid: "It would have been easy for us to walk away, but even after 30 years, why would you want to give up? We didn't start out as an entrepreneurial broker and we take a different view. Our finances are very positive." The broker has been conservative, profitable every year, carries no debt and has an extremely strong profit to turnover margin.

Julian continues: "What stimulates the mind are the challenges of coming up with business plans and solutions, to grow and develop our market share." Michael chimes in: "We can do it all ourselves - from our stomachs."

In new offices, designed for purpose only two years ago, and with an HR manager (Matt Duck from Tesco), an IT manager and a new training facility - as well as its very own 'Ministry of Fun' which helps organise charity and social events - the company has been transforming at a rapid rate. Julian says: "We have introduced a five day working week [from six days] and have ripped up our shift patterns."

Building relationships

Meanwhile, Julian's brother Dominic runs the affiliate side of the business, establishing relationships with a large network of motorcycle retailers. He has also started to talk to manufacturers for white label opportunities.

They are determined to have lots of fun along the way. Already the new management are making their mark, with a 'Top Gun' day - part of a comprehensive sales competition day - in full effect on the day I visit. Previously in charge of 500 people, the sales manager in charge, who impressed in interview with his emphasis on culture, was recruited in January 2007. On 5 October, all finalists of the Top Gun days will meet in a head-to-head shootout to win a 125cc scooter and a year's insurance.

Although the expectation is of a hardening market, with 59.3% thinking rates will rise in personal lines in the next six months , MCE has been suffering. A question about rates is dismissed by Michael with the answer, "the average premium has been flat for three years". As running costs rise year on year, the need for growth is absolutely paramount, despite the brokers running as efficient a business as possible, and also having an extremely healthy margin.

Marketing

The broker, based in Rushden, Northamptonshire, is focused on marketing and delivering customer service, perhaps best encapsulated in its lead phrase 'Smiles better quotes'. On its website it says, with a hint of cheekiness, 'to speak to a real person call . . .'

The broker's marketing has evolved strikingly. The Edwards, after becoming frustrated with a lack of control, decided to build an in-house team complete with media buyer and graphic designer. The idea for their front man 'Big Ed' - a six foot four biker with a black helmet four times his size - came from the family themselves and launched at the beginning of 2008.

Big Ed can be seen in person at events and is also on the glass at the front of the broker's office and in cartoon format in Motorcycle News which has its own insurance aggregator.

MCE has 40 marketing channels, including many industry magazines, and keeps a close eye on the returns. If there is no return after three months, they withdraw. They say they can readily take out the passion and emotion from these decisions. Formerly a branch network, the broker has since consolidated into one large office recognising the changing habits of personal lines' buyers.

Conversion rates are consistent at around 30% to 35%, something the brokers are determined to keep stable, whilst retention at renewal is between 65% and 70%.

Julian comments: "We are delighted with both, and are happy to pass leads on to other brokers, and vice versa. Alternatively we ask our customers if they are happy for us to pass on their data to other companies they might be interested in." In this way, broking rivals can become genuine business partners, and because there are relatively few brokers controlling the market it is easy to get to know the competition very well.

They have also worked closely with insurers you would not expect to play in the motorcycle space such as QBE. In addition to the Australian insurer, MCE works closely with Aviva, LV, Chaucer, KGM and Axa.

"The expertise is there at each insurer and we work with them on a partnership basis providing price analysis and management information. We sign off the pricing in real time," says Julian.

They have developed offerings which are particularly suited to bikers included the option of a replacement bike within 48 hours for fault, non-fault or theft. They also provide European breakdown cover.

Despite being based near the head office of the Institute of Insurance Brokers (in Higham Ferrers), MCE embraces the opportunities presented by the British Insurance Brokers' Association, with involvement on its regional committee - Michael is on the BIBA National Motor Panel and Aggregator sub-committee.

The broker has also been at the forefront of broker technology. It was the first to help Open GI develop a real time quote platform three years ago, which can now be linked up with price comparison sites. This became Active Quote, which allows brokers the flexibility to apply real time rating flexibility over the internet. MCE is continuing to push for mechanisms for straight through processing.

Clearly it is a never ending challenge developing IT and the Edwards would prefer to spend the money on winning new business, but they recognise the importance of being proactive rather than reactive is this increasingly vital area.

The broker has managed to combine forward thinking, clever technology and a large investment in marketing with a passion for broking, meaning that it has neutralised the effects of the recession.

Throughout the interview Michael is keen to get one point across: "My message to brokers is don't be afraid - you can do it."

With so many awards in the bag this year, the Edwards will have to keep their feet on the ground to ensure their hard work pays off, but a forward thinking and consistent marketing approach should help keep them close to their customers.