As a broker, it would be in my interest for the answer to this question to always be "right now." Reality is more nuanced: there are cases where a broker brings real value, and cases where the direct route is entirely fine. This article draws the line – honestly.
- The more complex the portfolio – more contracts, more premises, partner requirements – the more keeping it in one hand is worth.
- For a single simple, standard policy, the direct route can be fine too – especially if you have the time and inclination to deal with it.
- The entry point is typically not a product question but an event: growth, a tender, a claims lesson, a feeling of disorder.
When is the direct route enough?
An honest list: if the company has one or two standard contracts (say, property cover for a small office), the situation is stable, and someone is willing to spend an hour at each renewal on comparison – direct binding works fine. The market for mandatory motor cover is also well established. The point here too isn't the channel, it's diligence: reading the conditions and an annual look-over are mandatory steps even direct – the policy doesn't maintain itself there either.
When does a broker bring real value?
The equation flips in four typical situations. At complexity: several contracts, several insurers, premises, a fleet, benefits – here keeping it in one hand (table, map, renewal dates) saves money and risk on its own: renewal table, cover map. At a special need: tender requirements, a foreign client, project cover, larger liability limits – where market knowledge is the entry ticket: tenders, foreign client requirements. At claims experience: anyone who has once carried a difficult claim through alone knows what how the broker helps is worth. And at the time question: tendering, administration and paperwork are work that can be outsourced – the decision stays with you.
What does it cost, and how do you start?
The model is transparent: I charge the client no fee for advice, the intermediary remuneration is paid by the insurer – the details: what a broker does, and who pays. The risk-free way in is the portfolio review: bring the existing policies, and decide on next steps based on the diagnosis – it's also a perfectly fine outcome if everything stays exactly as it was. On the framework of the mandate, factually: representation and power of attorney.
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