Exploding onto the market

As brokers faced up to applying for authorisation by the Financial Services Authority there was an explosion of network start-ups. Since that time, some networks have thrived while others have fallen by the wayside. Ewan Campbell takes stock of the situation

Broker networks vary greatly in their rationale. Some provide assistance with compliance, maintenance of agencies with insurers, better commission, training, IT and marketing support. Some are user groups for brokers using the same software, some are marketing alliances and some are opportunistic carpet-baggers.

Aash Patel, senior consultant at management consultant Winchester White, observes: "Networks add value for smaller brokers who cannot manage basic infrastructure tasks. Compliance was