Why independence, why now?
The insurance broking sector is undergoing a rapid transformation. Consolidation of brokers has led to the rise of large businesses, where ambitious brokers can find the impact that they can make is reduced.
At the same time, clients are increasingly demanding a personalised service and want to build trusted relationships with their broker, a need often met by the smaller, independent broker rather than the larger corporate ones. This move has prompted many account executives to consider a pivotal question: “Could I succeed independently?”
The answer is undoubtedly YES, and a growing number of brokers are choosing to take this route. This guide provides a blueprint for navigating the journey to independence. It outlines how a solo brokerage operates, identifies common pitfalls to avoid, and offers a practical framework for building a successful and sustainable business.
Busting the Myths of Independence.
Independence in the insurance broking sector has long been clouded by misconceptions. Many talented brokers hesitate to pursue this path due to common fears that don’t align with reality.
Myth 1: Clients won’t follow me
Reality: Your client relationships are built on trust in you, not the company’s brand. Industry data consistently shows that 80-90% of clients will follow a trusted broker who chooses to go independent.
Myth 2: Going independent is too risky
Reality: The right business model can significantly mitigate this risk. An Appointed Representative (AR) model provides brokers with established compliance frameworks, operational systems, and essential access to insurers, creating a more secure and streamlined path to independence.
Myth 3: I will be isolated
Reality: Modern broker networks offer a collaborative community. By joining an Appointed Representative broker network like Momentum Broker Solutions, you connect with other professionals who are on the same journey, fostering a supportive environment for sharing knowledge and strategies.
Independence is no longer a solitary or high-risk venture. It’s a strategic move that allows brokers to build a business around their client relationships, supported by the infrastructure and community of a professional network.
The independence models (AR vs DA).
When establishing an independent brokerage, there are two primary regulatory pathways to consider:
Direct Authorisation (DA/Directly Authorised)
Direct Authorisation places the full regulatory burden on your firm. This model provides complete control over your operations and direct access to insurers. While this level of autonomy can be attractive, it comes with significant costs. If DA, you are responsible for all compliance, staffing, and system management, which can be a heavy financial burden for a new startup.
Appointed Representative (AR)
The Appointed Representative model offers a more streamlined route to market. In this structure, your brokerage operates under the authorisation of a Principal firm, such as Momentum Broker Solutions. This allows you to focus on client relationships and business growth, as the Principal handles all core compliance, regulatory, and infrastructural responsibilities. The AR model has become the preferred choice for new broker startups in 2025, as it delivers all the benefits of independence without the associated administrative and financial overheads.
The building blocks of independence.
Starting out on the road to independence doesn’t require building from the ground up. It’s about assembling the right pieces of the jigsaw in the right order.
- Compliance: Establish a robust framework to ensure full adherence to Financial Conduct Authority (FCA) standards from the outset.
- Insurer Access: By securing strong agency agreements with a wide range of insurers, you provide clients with the confidence that you can find the best, most credible solutions for their needs.
- Systems & Processes: Implement essential back-office infrastructure, including broker management software, management information (MI) systems, and financial support, to ensure smooth and efficient operations.
- Brand & Marketing: Develop a professional and credible brand identity and marketing strategy to reassure existing clients and attract new business.
- Client Transition: Carefully manage the transfer of your client portfolio, navigating employment covenants and ensuring a seamless, compliant transition that guarantees continuity of service.
Stories from the field.
Momentum Broker Solutions has successfully guided numerous brokers in their transition from employment to independence. Their stories consistently highlight shared benefits and outcomes:
- Increased Confidence: Brokers quickly realise they were already performing the core functions of an independent professional, but without the full financial and operational rewards.
- Strategic Support: By leveraging Momentum’s established compliance frameworks and strong insurer relationships, brokers can remove key operational barriers and focus on what they do best, serving clients.
- Accelerated Growth: Independence offers the potential to significantly increase earnings and build long-term equity. For example, an Account Executive managing a £400,000 book and earning £85,000 as an employee transitioned to an AR model and, within 12 months, was taking home over £200,000 while building a valuable asset.
This demonstrates that a supported path to independence is not just a career change, it’s a powerful move to unlock your full earning potential and build a business with lasting value.
Your Step-by-Step Playbook.
Launching an independent brokerage requires a clear, step-by-step approach. The following roadmap provides a framework to transition from a corporate environment to a successful, autonomous business.
- Assess How Ready You Are: Begin by thoroughly evaluating your existing client book, the strength of your relationships, and your long-term career ambitions. This assessment will clarify your potential for success and the value you bring to clients.
- Choose Your Business Model: The decision between Direct Authorisation (DA) and the Appointed Representative (AR) model is a critical one. While DA offers autonomy, the AR model is often preferred by startups for its speed and reduced administrative burden, as it provides a ready-made framework for compliance and systems.
- Plan Your Transition: A smooth exit from your current role is essential. Carefully review any employment covenants and develop a clear, professional communication plan to inform your clients.
- Secure Your Infrastructure: Before launching, you must have the necessary operational support in place. This includes securing systems and software, ensuring a strong compliance framework, and having good insurer access. All of this is provided by Momentum.
- Build Your Brand: Develop a professional brand identity that includes a name, logo, website, and a clear value proposition. A strong brand is crucial for attracting new business.
- Client Transition: The final and most important step is the compliant and seamless transfer of your client portfolio. Focus on maintaining open communication to provide continuity of service and build confidence in your new venture.
- Scale for Growth: Independence is not just about maintaining your current book of business, it’s also about growth. Leverage your support network and newfound flexibility to expand your client base and scale your business beyond its initial size, whilst being mindful of the support requirements needed.
Same Job, Better Future.
Independence in insurance broking is not about changing your professional responsibilities. It is about redefining the ownership of your output. You’ll continue to perform the core functions of a broker, serving clients, securing renewals, and expanding your book of business. But now, you fully own the value and rewards generated.
This guide serves as your invitation to explore the real implications of independence for your career. The decision is not a simple choice between safety and risk. Instead, it’s a choice between contributing to another person’s lifestyle, or creating your own future.
Embrace the opportunity for the same work, but with a significantly enhanced future. Achieve independence without being on your own, supported by a framework designed for your success.
To confidentially discuss your path to independence and learn how we can support you, why not book a meeting with one of our team today.
