How Long to Start An Insurance Brokerage?
Account executives and talented insurance salespeople wishing to start an insurance brokerage have two ways to proceed. The first is to gain direct authorisation from the Financial Conduct Authority (FCA). The second is to become an appointed representative of an authorised ‘principal’ like Gauntlet. Following a story that appeared in Insurance Age last week, the second route is definitely the quicker one towards achieving self-employment goals.
Insurance Age reported on data published by the regulator, which demonstrated that the FCA is falling behind its target for authorising new insurance firms. Despite having promised, in July 2025, to speed up the process for insurance brokers seeking authorisation, the situation shows that targets have not been hit.
On the other hand, in 96.2% of cases, those applying to become appointed representatives of an AR principal achieved their goal in the newly set time frame of two months.
Timescales to start an insurance brokerage through direct authorisation
An account executive would have to wait twice as long, if seeking to become directly authorised, even if the new target was achieved by the FCA. This too is only the target if all forms are complete at the time of application. If they are not, the process is targeted to be completed within 10 months under the newly set FCA time frames. However, these time frames are only being met in 81.8% of cases where direct authorisation is being sought.
For many, this is a wait too long to start an insurance brokerage. Once an account executive has taken the decision to move into self-employment, they typically need to be earning an income as quickly as possible. Many who decide to set up their own brokerage have families reliant on them, as well as financial commitments such as mortgages and loans.
Then there is the disappointment that comes with having to wait to achieve the dream of being your own insurance boss. Once you have taken the significant decision to make that move, you really want to expedite the process, to maintain momentum and keep the enthusiasm high.
FCA support for independent insurance brokers
The FCA has said that its new targets were “deliberately ambitious”, to drive a higher performance level from its officers and generate system changes that would foster better efficiencies. Whilst it may take more time to achieve the new targets, the ethos behind them is encouraging. The FCA, back in July, stated that its move to reduce registration delays was because it “recognised the potential this has to support UK growth and competitiveness.”
Gauntlet and the local broker renaissance
Here at the Gauntlet AR Network, we too recognise that supporting ambitious insurance account executives in their self-employed career ambitions is good for the UK insurance market. Consolidation, involving the constant sale of brokerages to huge insurance companies, is eroding service excellence for many businesses and individuals who have insurance requirements. Gauntlet recognised this as early as 2022, when we launched our concept of the local broker renaissance and committed to do all we could to innovate and put traditional, community-focused brokers back on the map. We have helped individuals start an insurance brokerage in as pain-free a manner as possible.
That process has been realised many times over and our approach has ticked the box of many account execs who want to provide strong, personalised and face-to-face service to their clients. Our championing of local brokers has not gone unnoticed, particularly because it is backed by cutting-edge computer systems, impressive buying power and extensive market access. The momentum has built month after month and the Gauntlet AR Network experienced its highest enquiry rate from prospective insurance brokers in the last quarter.
The frustration of waiting to start an insurance brokerage
Rather than having to wait six to 12 months for direct authorisation, as many still do, an appointed representative can be up and running with the Gauntlet AR Network within two or three. There is no need to jeopardise cash flow before policies even start to be placed, through having to spend big on IT, compliance systems and professional indemnity insurance. Gauntlet provides all the IT and back-up services required, so that the AR can focus on building client relationships and generating sales.
The need for the FCA’s significant capital adequacy requirement is also removed and the hefty FCA direct authorisation fees, which can be as much as £10,000, are also saved.
How fast can an appointed representative (AR) build a business?
Once the FCA permission has come through, an appointed representative can start to build their business swiftly. When joining Gauntlet, they have the added advantage of being able to leverage the knowledge of the in-house direct sales team. This can also provide access to sales leads and sales campaigns, which can help a new AR earn their first fees.
These early days are really the golden hours, in which the business plan needs to sing and the period in which tweaks may have to be made, if the business is to follow a successful path. With so many years of assisting appointed representatives, Gauntlet can help an AR navigate this crucial time in their development. As a mentor, we can also highlight where things might be improved or where quick wins might be had.
Changing attitudes towards the appointed representative model
Ten or fifteen years ago, the insurance world was a different place. Account executives became appointed representatives with a view to quickly building up their business, getting a bit of capital behind them and then becoming directly authorised. The belief was that they would be better off when keeping the whole of their income, rather than following the commission split model with their AR principal – paying some of their commission in return for the support and compliance services provided.
Fast-forward to 2026 and ARs now realise that what they receive from Gauntlet is almost a money-cannot-buy suite of services and access to insurance markets that they simply could not enjoy if directly authorised. Such is the attraction of what Gauntlet offers as an AR principal that it now sees an increasing number of directly authorised brokers wanting to take advantage of something it pioneered to make their lives easier. This is Gauntlet De-authorisation Fast-track, which can help a directly authorised broker switch their status to appointed representative within around eight weeks. Once they do, these brokers can accrue all the advantages that Gauntlet provides, delegate all non-core activities and focus on the clients they desired to serve when becoming self-employed.
How to start an insurance brokerage with Gauntlet
With all that direct authorisation entails, many brokers realise that the Gauntlet AR Network should be their professional mother ship, if they can meet its high acceptance criteria. Now both Gauntlet and Brokerbility form the broker network division of the Clear Group, working together to offer even greater choice and value to their broker network clients, even more insurance sales people should be assessing how to match that criteria, start an insurance brokerage and launch a successful independent broking career.
If this sounds like the type of professional network that you want behind you, as you start your insurance brokerage, get in touch with us today. Call Nigel Law on 07774 690436, or email NigelLaw@GauntletGroup.com
Photo credit – Photo by Scott Graham on Unsplash
Gauntlet Risk Management Ltd is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 308081. You may check this on the Financial Services Register by visiting the FCA website, www.fca.gov.uk/register/ or my contacting the FCA on 0800 111 676. Registered Office: Gauntlet House, 15 Acorn Business Park, Killingbeck Drive, Leeds, LS14 6UF. Company Registration No 03726095.