Opinion: How long have directly authorised independent brokers got left?
Lea Cheesbrough, managing director at Movo Partnership, says the appointed representative model is becoming the preferred choice for start-up brokers and that independent firms are looking to switch
The number of independent brokers and agents in the UK has declined by 0.4% per year on average over the past five years. However, is this decline about to accelerate?
Directly authorised independent brokers have been squeezed hard by the impact of regulation and the cost of implementation.
According to the British Insurance Brokers’ Association, regulatory costs for brokers are at an all-time high – 40% higher than in 2019.
Regulation now costs 8.1% of brokers’ fees and commissions, Biba
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Regulation
Regulators outline changes to help streamline SM&CR compliance
Brokers should see reduced costs and greater flexibility, following changes made to senior managers and certification regime announced today by the UK's joint financial services regulators.
Graham Gibson joins Sicsic
Sicsic Advisory has appointed former Allianz claims boss Graham Gibson as a senior consultant.
FCA warns on fake letters
The Financial Conduct Authority has warned of fake letters claiming to be from deputy CEO Sarah Pritchard and referencing a fake FCA employee.
FCA issues another Close Brothers clone warning
The Financial Conduct Authority has warned that fraudsters have been impersonating Close Brothers trying to scam people with a clone of the authorised firm.
Closing the UK’s access-to-justice gap
Sponsored blog: David Haynes, ARAG CEO, explains why access to justice matters, the role the insurance industry plays in extending it, and why 2026 could prove a critical year.
FCA proposes 1.4% fee rise for broker block
The Financial Conduct Authority is consulting on raising levies from brokers by 1.4% in 2026/27 – double its annual budget increase – as it also laid out its work programme going into the second year of its five-year strategy.
FOS and FCA reveal next steps for system reform
The Financial Ombudsman Service and Financial Conduct Authority have outlined the next steps on their joint work to modernise the redress system.
ManyPets confirms social media clone
Pet insurance managing general agent ManyPets has confirmed a customer was contacted by an X account impersonating its brand and has issued a warning on how increasingly convincing scammers can appear.