Over the past few years, directly authorised insurance brokers have struggled greatly, realising that the decision to secure direct authorisation from the FCA may have not been the right one.  However, for many, at the time they took that decision, the option to be an Appointed Representative instead, may not have existed or been apparent.

Being directly authorised used to carry some weight.  Now it just carries weights around the neck.  On that basis, here are 10 reasons why directly authorised brokers should now look to de-authorise and become an Appointed Representative instead.

1. The burden of compliance

Compliance reporting has become onerous and a never-ending task.  If you are tired of filling in questionnaire after questionnaire, it’s time to let an Appointed Representative network principal, like Gauntlet, do it instead.

2. PI

Insurance brokers are finding that the cost of Professional Indemnity insurance has gone through the roof, adding to the costs on the balance sheet.  Gauntlet Appointed Representatives have this insurance cost covered by Gauntlet.

3. Access to market

Many smaller insurance brokers simply do not have the volume to meet an insurer’s agency requirement.  Insurer demands, in this respect, are rising.  This leaves many directly authorised brokers with limited access to insurers and niche schemes.  With Gauntlet, however, Appointed Representatives benefit from its impressive buying power and access to hundreds of different cover options.

4. Accounts

The monthly accounting is a burden for many small-to-medium-sized insurance brokers.  It’s another task eating up the time, preventing a broker from getting on with their day-to-day work.  Gauntlet Appointed Representatives, meanwhile, have all accounting done for them.

5. Holidays

A holiday is a luxury many directly authorised brokers just cannot afford, being unable to down tools and take a break.  On the other hand, Gauntlet Appointed Representatives can go away and either work from abroad, or ask the broking team to run their business during their absence.  Some ARs actually run their businesses form overseas for extended periods of time.

6. IT

Directly authorised brokers need access to the best IT systems, to compete effectively, but many just cannot justify the investment and worry they will not get the required training.  Gauntlet takes all the angst out of the scenario, by providing a highly affordable way in which to access award-winning Acturis IT.  Its team also ensures Appointed Representatives know how to use the system and tailor parts of it to their needs.

7. Life-balance

For many directly authorised brokers, life has become all about trying to run the business, rather than having time for family and hobbies.  Many Gauntlet ARs, however, find they can operate their business for just three or four days a week, or just certain hours per day, and still meet their income goals.

8. Overheads

With energy costs rocketing, along with many other items of expenditure, the figures just aren’t stacking up for many directly authorised brokers who rent offices, pay staff and have all the other overheads entailed with running a business from premises.  By becoming an Appointed Representative through de-authorisation, they can decide whether they want to streamline their operation.  They certainly don’t need to have an office or any staff, unless they really want to keep some on board.

9.Pension boosting and exit planning

Brokers who are often keen to de-authorise are also those within ten years of retirement (or less), who have seen their pension pot shrink over the past few years.  They know they need to replenish their savings but do not have the means to generate extra income, with all their directly authorised broker commitments and lack of access to market.  Similarly, they do not wish to sell out too early, or at a poor price, partly because their social life is often entwined with their business.  By becoming an AR of Gauntlet, they have the means to keep the business trading, but more efficiently and profitably, cutting costs and boosting earnings potential.  They also have a ready-made exit route, as they can typically sell their business to Gauntlet, when ready to do so.  Even better, is the fact they can stagger this sale, to suit their own pace of exiting.  No other Appointed Representative network can offer this to its ARs.

10. Getting back to where they once belonged

Brokers who have been through the de-authorisation process say that it enables them to get back to what they do best – broking.  They can also become part of a broking family once again, having time to get out to industry events and also networking with other Appointed Representatives within the Gauntlet network at training events, the annual conference and the springtime ‘Springboard’, which inspires sales for the rest of the year.

Gauntlet created a UK ‘first’ when it devised its Gauntlet De-authorisation Fast-track – a means to rescue directly authorised brokers from all of the above and set them on a different course.

If you would like to join those who have already benefited from this, just email NigelLaw@GauntletGroup.com or call him on 07774 690436.