The British Insurance Brokers’ Association (BIBA) and Intact Insurance have launched a Start-Up Hub to help aspiring brokers set up and grow their own businesses.
The online hub offers guidance on the main decisions involved in starting a brokerage. These include choosing a route to market, as a directly authorised firm or an appointed representative, preparing for authorisation or appointment, understanding the Financial Conduct Authority’s (FCA) expectations, business planning, operational issues, and building the foundations for long-term success.
BIBA chief executive Graeme Trudgill said a decade of consolidation had reshaped the market and created opportunities for new entrepreneurial brokers.
“Whether you’re exploring the idea for the first time, operating as an Appointed Representative or considering Direct Authorisation, there are important decisions to make around regulation, business planning and growth,” said Trudgill.
Tovah Grosscurth, managing director at Intact Insurance, said launching a brokerage could be exciting and challenging, particularly as firms deal with regulation, market access and the practical realities of building a sustainable business. She said helping new brokers build strong foundations would support a vibrant and competitive broking sector.
Small business minister Lord Leong also backed the initiative. He said schemes like it were crucial to making the UK the best place to start and grow a business.
The launch comes as the pace of broker consolidation slows. UK insurance distribution M&A had its quietest quarter by volume since 2020 in the third quarter, according to MarshBerry, and several of the most active consolidators have slowed their UK buying this year.
New models for growth are emerging alongside it. Konsileo recently raised £5 million to keep growing without acquisitions by recruiting individual brokers. Minority Broker Partnerships has made seven minority investments in a year, letting owners keep control. And Ascend Insurance Holdings is building a group of regional broker hubs that promises member firms autonomy.
Intact also has a commercial interest. It describes itself as a top five UK commercial lines insurer, with plans to grow its UK business from £2.7 billion to £5 billion by 2030, and new brokers represent future distribution.
For experienced brokers considering going it alone, the hub brings together guidance on the key early choice: whether to start as an appointed representative under a principal firm, or to seek direct FCA authorisation. The appointed representative route is faster and lighter on regulation, but gives less independence. Direct authorisation brings more control, but higher compliance costs and capital requirements.
For the wider market, a steady flow of new brokers keeps the market competitive and gives customers more choice, particularly in local and specialist segments that larger groups may serve less closely.
