Coleman Insurance - Broking with a smile

Peter Moody, like many in the industry, never intended to become an insurance broker. He achieved little academically - his ambition being in sport - and left school young to pursue his ambition of being a professional rugby league player.

In 1965, realising that there was no money in rugby, Moody chose an insurance trainee's position at Royal Insurance in Bournemouth at random from his employment officer's desk. A decade later, Moody took a job with Lloyds broker F. Bolton, where he enjoyed the challenge of looking after the client and decided to focus his career on broking. Moody believes he is living proof that "any career is what you make of it."

Coleman was founded as a local, family-owned broker in the 1920s. The business grew but then shrank as two staff left to set up their own business. Moody was offered the opportunity to buy the broker alongside a property developer 23 years ago and the broker has grown considerably since.

"The business was sleepy but with a lot of potential," says Moody. Most of the growth of Coleman has been organic but a couple of acquisitions of small local brokers has also played its part. Over the last 23 years, the broker has gone from around £60,000 annual revenue to almost £3m.

There is a very light-hearted atmosphere around the office and the staff members seem happy. One employee has more than 46 years of service at the broker, while most of those who joined the business when it was purchased by Moody and the other shareholders 23 years ago are still there also.

"I like managing people the most out of what I do. I love to see them happy and fulfilling their potential. A highly motivated team who enjoy their job will stay with you and will give a much better service to clients," says Moody, who believes that the early challenges faced by Coleman when it shrank were due to the loss of key members of staff. Monthly dress-down days for charity, social events such as summer barbeques and office parties - along with a staff newsletter - are tools used by Moody to help motivate his staff.

Friendly

Moody also encourages employees to build personal relationships with both clients and insurer contacts, handling each of their accounts through the whole insurance process. Coleman boasts high retention rates and Moody believes that the results of the relationships developed are that both staff and clients feel valued.

Moody comments: "Insurance is all about trust. Client relations are the most important indicators of success but some brokers are too fixated by the money. As a result, broking standards are falling in some areas: this is something the industry needs to address."

Coleman has a thriving charities division and Moody believes that one of the reasons behind this is his staff's personal involvement. In 2007, Moody took part in a trek to Machu Picchu in Peru to raise money for Forest Holme, which works in hospice and palliative care in Poole. He explains: "When working with charities, you need to understand how diverse and complex their needs are, the responsibilities of trustees and safe fundraising. Importantly, as they are working to constrained budgets, you also need to know how to do it all economically."

The growth of Coleman's charities division has further been helped by winning the Royal National Lifeboat Institution contract in 2001, with the Dorset-based broker beating off competition from broking giants Marsh and Jardine Lloyd Thompson. The charity has stayed with Coleman for its insurance needs ever since.

Coleman captured the account of luxury boat builder Sunseeker International 14 years ago, giving the broker a major hold in the marine sector. Moody notes that his broker had employed a member of staff with a marine background so deliberately concentrated on this area for growth. The Coleman marine team also boasts a significant level of Royal Yachting Association credentials and boat ownership, alongside insurance qualifications that help them understand the unique needs of marine clients.

As well as handling its commercial insurance, the broker also offers a scheme for Sunseeker boat owners and Moody says that Coleman has seen some of these clients turn to it for other insurance elements, securing growth for the broker among high net worth clients.

Furthermore, the broker also has a national scheme for electrical retailers. Moody believes that niche offerings and schemes are a good prospect for brokers. "As our industry goes forward, more businesses will be transacted in a far more niche manner for both brokers and insurers. Clients will want to deal with you because of your specialism and knowledge," he says.

Coleman currently charges fees for around 15% of its business. Moody believes that, for larger clients, this is a development that will continue to grow: "Sometimes it is more appropriate to charge fees for a few of the larger clients. Fees are regarded by some clients as the professional way to do business, likening us to lawyers and accountants."

Outlook

Moody is ambitious for the future of Coleman, despite the wider economic climate. The broker invested in its website recently to increase its interactivity, while the business maintains an interest in selective broker and specialist team acquisitions to continue expansion alongside its organic growth. Moody notes that Dorset has been less affected by the recession so far than some other areas of the country and believes that Poole may even see investment growth as more people holiday on the south coast of England rather than in mainland Europe.

As for his personal future, Moody is elusive. While a "gentleman of a certain age", exiting the business is on his mind, though Moody does not intend to let Coleman suffer by departing before he feels the business is ready. He says: "Retirement will have to happen at some point but I want the business values that are in place to continue at my exit. I want to leave Coleman only as a happy and successful business."

COLEMAN INSURANCE

Managing director: Peter Moody

Established: 1928

Locations: Poole, Southampton

Number of staff: 45

Main lines of business: Commercial and marine

Gross written premium: £20m.