The Movo Partnership, now with 85 members, has already surpassed the insurance broker network’s year-end target of 80 members.
By 2024, Movo expects to reach a members count of 120, with gross written premium (GWP) at £100 million. This year, 28 brokers have come on board Movo, of which 64% are startups.
“Startup brokers have boomed in 2023, partly due to fallout from the recent M&A (mergers and acquisitions) frenzy, but also because of a shift in regulation,” Movo managing director Lea Cheesbrough (pictured) said in an emailed release. “The FCA (Financial Conduct Authority) has effectively rubber-stamped the AR (appointed representative) model, and that’s had a dramatic impact.
“When you consider that it takes just 12 weeks to get authorised as an AR compared to 12 months as a DA (delegated authority) broker, not to mention that it’s around 70% cheaper, removes the compliance and regulatory burden, and guarantees you an agency from day one, it’s little wonder that startups under the AR model has proven to be so attractive.”
Currently, Movo’s members represent GWP worth £78 million.
Cheesbrough said: “Brokers are like trees – plant a seedling, nurture and support it, and branch by branch, wait for it to grow. The sub £2 million GWP startup brokers are our heartland and our mission at Movo – to grow and protect the future of independent broking in the UK.
“The Movo Partnership exists to be the most cost-effective way to run a brokerage and to encourage new startup brokers, replacing the brokerages in the market that have been lost to M&A activity. We’re thrilled to see so many startup brokers flourishing under our model.”
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