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

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Biba 2024: FCA to take its time on transparency proposals

Emily Shepperd, chief operating officer of the Financial Conduct Authority, has said the regulator was “overwhelmed” at the response and amount of feedback to its transparency proposals, and that it is going to “really take our time” when considering any possible next steps.

FCA warns on Tempcover clone

The Financial Conduct Authority has issued a warning of fraudsters trying to scam people by pretending to be short-term car insurance specialist broker Tempcover including on TikTok.

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