Alistair Body writes…
Appointed representative (AR) aren’t new in the UK, yet in recent years it has taken on renewed relevance particularly in the General Insurance broking market.
The UK broker market has been shaped by consolidation in recent years which has been driven by VC investment, increased regulation and technology advancements, the AR arrangement remains a practical route for ambitious brokers seeking independence, without feeling isolated.
An appointed representative operates under the permissions of a principal firm, which assumes regulatory responsibility for the AR’s conduct. It is, at its core, a partnership between entrepreneurial drive and compliance oversight. For many experienced account executives or small brokerages, the model offers a genuine alternative to direct authorisation and ultimately the freedom to compete with the larger broking houses while having the comfort of strong regulatory framework.
Insurance is a people business, and the AR model allows the human side of insurance broking shine. Many professionals want to build businesses rooted in personal service but are wary of corporate constraints. The flexibility and centralised support enable a business to continue to focus on what’s critical, client outcomes and income generation.
While the initial appeal of the AR framework lies in its ability to remove barriers to entry while preserving ownership of client relationships its benefit continues to deliver as a business grows.
