“How exciting do you want the answer?” asked Will Thompson (pictured above).
Insurance Business had just asked Thompson why he became an insurance broker. The good humoured response came during an interview about the recent acquisition of his family firm – Thompson Insurance – by global brokerage Gallagher.
Thompson took over directing the business, based in the coastal Queensland town of Maroochydore, from his father two years ago.
“Peter, my father, set the firm up on the Sunshine Coast about 18 years ago,” he said. The foundation of the firm coincided with a local building boom that helped transform the once sleepy beach town into a commercial hub.
“Obviously I grew up surrounded by insurance and saw the fruits and opportunities that the industry can provide,” said Thompson. “Dad created a good life for myself and our family so I thought, ‘Let’s give this a crack.’”
Giving it a crack started with studies in general insurance and broking at Brisbane’s LMI College of Insurance and Risk. By 2015, Thompson was working as an underwriting consultant with insurance giant Suncorp.
“Then it was over to the UK for a year and then I came back and joined the family business about six years ago and took over as a director two years ago,” said Thompson. His father retired from the business in June.
Thompson’s two siblings weren’t as interested in the insurance broking business.
“I’m kind of it,” said Thompson. “I have an older sister and a younger brother, and my older sister did a bit of time in the family business as she was going through university but my younger brother is an electrician and not so interested in the office lifestyle.”
“We’ve always leveraged our local relationships through surf clubs, footy clubs and a lot of involvement with local business networks, Chambers, the council and the like,” said Thompson.
He’s on the executive committee of the Maroochydore Chamber of Commerce and founding member of the Sunshine Coast Young Chamber of Commerce. Also on his LinkedIn profile, 15 years as a lifesaver with the local surf lifesaving club.
Thompson’s five-person brokerage specialises in construction and commercial property insurance.
“Things are getting very difficult, costs are going up and weather events aren’t easing,” said Thompson. “Hopefully, partnering with a company like Gallagher will give us a bit more pull to get better results for our clients.”
The family’s decision to sell the firm, he said, was partly driven by these current challenges in the construction insurance market.
“In [construction] insurance, it’s just such a limited market nowadays,” said Will Thompson. “There are very few people who can write construction insurance.”
He said many of the main insurers, particularly those who work with smaller businesses, “are completely out of the market.”
“Then at the bigger end of town, you need the introductions from companies like Gallagher to even get a nod from them [insurers].”
Apart from insurance challenges, he said, the building industry itself has a range of difficult issues.
“Wages are going through the absolute roof,” said Thompson. “People are offering five and 10 grand sign-on bonuses and paying for families to move up from Sydney and Victoria - and they still can’t attract and retain talent.”
This is significantly increasing the cost of building projects, which pushes up insurance costs and amplifies the trouble a brokerage can face finding covers for a construction client.
“We see this as really the next opportunity, Gallagher brings global strength,” he said, referring to the sale of the business Gallagher. “There’s no denying insurance is getting more and more difficult, so having one of the big players like that backing us to do our job and enable us to service our clients could be very beneficial.”
Thompson is bargaining on the global broker’s insurer relationships and international experience.
“They were very passionate about what they were doing, and the company that they worked for, and it just seemed an easy fit,” said Thompson. “There are some very experienced brokers who I’ll get to work with and be supported by - they will be able to introduce us to and help our clients get better results.”
What do you see as the current challenges in the construction sector? Please tell us below
