Insurance solution income stream for property management companies
Property managing agents are increasingly working with Gauntlet Group in two ways, following December 2023’s FCA reform of insurance arrangements for leaseholders.
On the one hand, the need to deliver demonstrable fair value to leaseholders, in line with FCA requirements, has seen the Gauntlet Group sales team placing insurance risks for many more managing agents. These are property managers having to choose policies on the basis of true value, not associated commission rates.
On the other hand, property managing agents wishing to replace income previously earned from insurance arrangements, are considering how to set up their own insurance arm.
Creating an insurance arm within a property management company
Whilst the rules clearly require a property managing agent to shop around in the market and present leaseholders with the best premium/cover combination for their needs, they can deliver this fair value as an appointed representative (AR) of Gauntlet Group.
This requires them to employee an individual with relevant insurance experience, who will gain FCA approval as a Gauntlet appointed representative (AR). That individual will then access the choice available through many property insurance policies at Gauntlet’s disposal.
Why should a property agent use Gauntlet as their AR principal?
The property agent setting up an insurance arm, can tap into Gauntlet Group’s extensive reach and immense buying power. This leverages better deals for customers and clients, across all market sectors and is extra-powerful thanks to Gauntlet having its own broking team. Competitor networks do not have this internal resource, which can both mentor ARs’ sales performance and generate significantly more income for insurers. That then generates better terms and competitive advantage.
The appointed representative wing of the property managing agent business can both deliver fair value AND earn commission, just as any independent appointed representative can do with Gauntlet. And they need not confine their scope to just their leaseholders or even to the property sector. An AR would be able to place any type of business they wished to handle.
Gauntlet’s support for a property management company’s insurance arm
All back office administration, accounting, compliance and professional indemnity requirements are handled by Gauntlet Group, so the AR can just concentrate on finding the best covers and handling client queries and after-sale requirements.
The focus can be placed on the customer, rather than peripheral or non-core activities.
How property agents can enquire
If you are a property managing agent wanting to replace lost income on insurance arrangements, this is a viable, legitimate way to do so and one that can provide leaseholders across the portfolio with an excellent means of handling their insurance arrangements.
To discover how this could work in your property business, email RogerGaunt@GauntletGroup.com, or fill in our AR enquiry form.
To simply secure competitively priced property insurance for your leaseholders through our direct sales team, please call 0113 244 8686.
