Case Study
In 2016, Lexicon Property Ltd., an aspiring and forward-thinking Insurance AR based in Essex, decided that they needed to radically change the way that they conducted business in order to promote growth.
With around 10 staff, Lexicon at that time enjoyed a relatively modest GWP of around £2.5m pa.
Chairman Gary Chapman
then Managing Director – aspired to double their GWP but was struggling to maintain even current levels with resources stretched to the maximum maintaining GWP of around £175k pm. To grow the business further, Gary needed more time, resource or both.
Inspired by ibroker’s outstanding track record and with the comfort of zero up-front costs*, Gary commissioned the installation of ibroker into Lexicon in February 2017.
Just 18 months later Lexicon achieved £10m GWP for the year 2018 with the trend continuing throughout the next 3 years with 2021 GWP breaching the £20m bracket with no significant increase to resources– so how did they do it?
In March 2017 the ‘Quote & Bind limit’ in the rating engine was set to £1000 enabling their brokers to place on cover anything with premium under £1000 which didn’t ‘Refer’, without the intervention of underwriters, through the broker portal on the web interface, thus leaving the underwriters free to concentrate their efforts on the larger, more profitable cases. The result was that March was an all-time record month for Lexicon, significantly better than their previous record month.
A fluke perhaps? No! Not if their performance in the following months was anything to go by!
By the end of June 2017, just five months later – Lexicon had done more business than in any previous year, prompting the following testimonial from MD Gary Chapman.
“ibroker has proved an invaluable tool for our company. It has given us the capacity to significantly increase our GWP whilst dramatically reducing our administration time, freeing up resources to enable us to improve our client service standards, our marketing and grow our business further.
From the date of the launch, we saw our new business growth more than double over the first 3 months. After 5 months we had written more business than we had in the whole of the previous year”.
Gary Chapman, MD
The trend continued with Lexicon consistently hitting new record months up to December 2017 when they stepped over the £500k barrier. Placing over £550k of GWP for the month onto the ibroker system, put their GWP for the eleven months from February 2017 through to December 2017 at a relatively whopping £3.6m!
Their success in 2017 set the trend for growth in 2018
In 2018 Lexicon achieved a staggering £9.5m GWP, eclipsing their 2017 record of £3.6m!
This was by no means the end of the story, in fact it was just the beginning! In June of 2018 Lexicon made their first acquisition, purchasing MGA Oasis Property Insurance Services Ltd and adding Commercial Combined to their growing raft of residential and commercial property insurance products. Enjoying similar success with outstanding growth, the Oasis success story will be told separately at a later date.
In the meantime, Lexicon have continued to grow at a similar pace in the ensuing 3 years, breaching £20m of GWP in 2021 and January 2022 seeing their first £4.5m GWP in a single month.
Lexicon achieved all of this with no significant increase in staff or resources pushing overheads down while significantly increasing profit margins!
What we know for sure is that the reliability, efficiency and speed with which the ibroker platform handles the day-to-day business of a busy MGA has given Lexicon back the time they needed to push their business forward while providing the capacity to easily handle and maintain their growth.
So how much of Lexicon’s success story can be attributable to the ibroker system? You decide!
*ibroker does however require a security deposit which is refunded back to you in lieu of commissions over the first year of trading with us.
