Becoming an Insurance Broker

Becoming an insurance broker can be a highly rewarding and flexible career. However, there are a number of immediate obstacles to be overcome if you want to set yourself up in business as an insurance broker. Although there are challenging routes to becoming an insurance broker, there are also easier methods too.

To offer a guide, we will look closely at these two approaches – the “directly authorised” insurance broker and “appointed representative” model. Comparing your options, the directly authorised insurance broker is one who seeks direct authorisation in the role from the financial services industry regulator, the Financial Conduct Authority (FCA). The FCA is the regulatory body for insurance brokers and are responsible for monitoring the work of insurance brokers.

The authorisation process for a broker just starting out may take eight months or more and there is a non-refundable fee to pay to the FCA upon submission. Fees starts from £1,500 for basic applications, but may rise to as high as £25,000 for an especially unique application. The FCA is also likely to impose a minimum capital requirement for your brokerage business and this may be in an amount ranging from £5,000 to £250,000.

The FCA will also insist that you have arranged a sufficient level of professional indemnity insurance to protect your business activities. In order to trade as a broker, it is fundamental that you install your own electronic trading platform for the regulatory and compliance efficiency needed by your business (such as sanctions checking and automated document production). 

Enter the world of the Appointed Representatives model for Insurance Brokers…

Becoming an insurance broker in your own right is full of options and ideas. What hours and days will you work, where will you establish yourself, what products to focus on and importantly – how will you operate. At xBroking, we offer a holistic and less demanding approach for insurance brokers wanting to become Appointed Representatives. By joining xBroking as a valued partner - you still need to be fully committed to the role you are seeking and to work hard at your business. But you do so in the knowledge that you have the full support and backing of an independent Lloyd’s Broker. 

• Earn as you place business with weekly and monthly commission payments to your account
• Receive weekly reconciled bank statements
• Access to Acturis and E-Trade software for instant screen quotes
• ‘Plug & Play’ – earn as soon as you become an Appointed Representative
• No need to worry about FCA, FSCS of FCA filing
• Receive greater incentives and access to market by levering on xBroking’s relationships
• Benefit from xBroking’s licences and FCA permissions such as Credit Broking activities
• The clients are always, always yours.