Alistair Body writes…
Starting your own insurance brokerage has never been more accessible for an experienced broker who wants to take control over their career and maximise the opportunity that their clients relationships provide.
The consolidation of the UK insurance broking market has, not only driven a lot of change but has also, shown the path for genuine wealth creation for the industries client facing brokers.
While the transition from employee to business owner inevitably brings new responsibilities, it also opens the door to personal growth and the ability to learn new skills. With the right support structure, the regulatory, operational, and commercial challenges that once deterred start-ups become opportunities to build stronger, more resilient businesses.
The first major decision for those looking to start up is considering which regulatory status works best. The options being to seek direct authorisation from the FCA or operate as an appointed representative under a principal.
Direct authorisation (Directly Authorised) can appear to provide more control, but it carries considerable cost, time and compliance obligations and the potential of hampering your ability to focus and deliver on client outcomes and income generation.
The AR route allows faster market entry and the reassurance of an existing compliance framework, along with access to insurers and systems that enable you to start trading quickly and confidently.
For those embarking down the direct authorisation route, new brokers face challenges in obtaining insurer relationships, accessing systems, and managing client data securely. These are not simply administrative hurdles, they are fundamental to ensuring credibility and client outcomes.
Many brokers who decide to go directly authorised underestimate the extent of work required to secure the insurer access needed to place the very risks their clients expect them to handle. It’s a classic chicken and egg scenario, insurers will expect volume, but without the volume its difficult to get the service and terms needed to win and retain clients.
Today, the ability to start up has never been as accessible thanks to the Appointed Representative route. It removes the barriers that were deemed to be impossible for talented professionals striking out on their own and offers access to insurer markets, proven systems, and expert compliance support from day one. Rather than removing independence, it accelerates it, and allows new brokers to focus on client relationships and revenue generation from the start.
