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BGP Insurance Services

What is an Appointed Representative (AR)?

If you have been thinking about working as insurance broker, you are almost certain to have come across the term Appointed Representative (AR). But what are ARs and to what extent becoming one may help your business as a broker?

The formal role and status of an Appointed Representative is clearly set out by the finance industry regulator, the Financial Conduct Authority (FCA). It describes a contractual relationship between an Appointed Representative (who may be an individual or a firm) and a “principal”. The principal is responsible for ensuring that any AR complies with the requirements rules and regulations of the FCA. If you do not work as an Appointed Representative, your insurance brokerage must be directly authorised by the FCA.

What are the advantages of becoming an AR?

One distinct advantage has already been mentioned and that is the protection you receive from a principal who is entirely responsible for ensuring your compliance with all the FCA’s rules. Since compliance with FCA rules is essential to your ability to do business, the principal’s role is fundamental. But there are many further advantages to becoming an AR:

FCA authorisation

Your principal is required to take full responsibility for your authorisation by the FCA and makes that application on your behalf;

Since the principal is already well-established in the insurance industry, FCA authorisation is typically secured much more quickly than an application made for direct authorisation;

The cost of making an application for authorisation (a fee of £1,500, £5,000 or £25,000, depending on the complexity of your proposed business) is borne by the principal;

Systems

For any business these days, access to information systems capable of matching products to customers’ requirements is essential – but none more so in your role as an insurance broker where the diversity of products and the speed with which transactions need to be conducted are paramount;

An AR enjoys direct access to the principal’s IT systems and data bases, ensuring that you maximise your market potential by delivering a high quality product tailored to your customers’ precise needs and requirements;

Support

Just as the name suggests, a principal is typically an established, much larger and well-resourced company capable of providing any kind of support your insurance business may require;

You have access to specialist advice and expertise which, again, may make the difference between success and failure to your own business;

An example of the relationship between principal and AR is described by on our website here at BGP;

Products

Thanks to the operating scope and scale of the principal’s business, an AR has access to a much greater range of insurance products than the one or two typically available to a directly authorised insurance broker;

Ownership

if you are unfamiliar with the role of an AR, you might be worried that this somehow involves the loss of your own brokerage’s identity and ownership;

This is very rarely the case, however, and the AR retains complete ownership of the business and the client base upon which it operates.

Given a choice between operating as a directly authorised insurance broker and becoming an Appointed Representative of your chosen principal, you might consider there to be significant advantages to operating as an AR. For more information on joining the BGP AR network simply contact us


What is an Appointed Representative? (AR)?

If you have been thinking about working as insurance broker, you are almost certain to have come across the term Appointed Representative (AR). But what are ARs and to what extent becoming one may help your business as a broker?

The formal role and status of an Appointed Representative is clearly set out by the finance industry regulator, the Financial Conduct Authority (FCA). It describes a contractual relationship between an Appointed Representative (who may be an individual or a firm) and a “principal”. The principal is responsible for ensuring that any AR complies with the requirements rules and regulations of the FCA. If you do not work as an Appointed Representative, your insurance brokerage must be directly authorised by the FCA.

What are the advantages of becoming an AR?

One distinct advantage has already been mentioned and that is the protection you receive from a principal who is entirely responsible for ensuring your compliance with all the FCA’s rules. Since compliance with FCA rules is essential to your ability to do business, the principal’s role is fundamental. But there are many further advantages to becoming an AR:

FCA authorisation

Your principal is required to take full responsibility for your authorisation by the FCA and makes that application on your behalf;

Since the principal is already well-established in the insurance industry, FCA authorisation is typically secured much more quickly than an application made for direct authorisation;

The cost of making an application for authorisation (a fee of £1,500, £5,000 or £25,000, depending on the complexity of your proposed business) is borne by the principal;

Systems

For any business these days, access to information systems capable of matching products to customers’ requirements is essential – but none more so in your role as an insurance broker where the diversity of products and the speed with which transactions need to be conducted are paramount;

An AR enjoys direct access to the principal’s IT systems and data bases, ensuring that you maximise your market potential by delivering a high quality product tailored to your customers’ precise needs and requirements;

Support

Just as the name suggests, a principal is typically an established, much larger and well-resourced company capable of providing any kind of support your insurance business may require;

You have access to specialist advice and expertise which, again, may make the difference between success and failure to your own business;

An example of the relationship between principal and AR is described by on our website here at BGP;

Products

Thanks to the operating scope and scale of the principal’s business, an AR has access to a much greater range of insurance products than the one or two typically available to a directly authorised insurance broker;

Ownership

if you are unfamiliar with the role of an AR, you might be worried that this somehow involves the loss of your own brokerage’s identity and ownership;

This is very rarely the case, however, and the AR retains complete ownership of the business and the client base upon which it operates.

Given a choice between operating as a directly authorised insurance broker and becoming an Appointed Representative of your chosen principal, you might consider there to be significant advantages to operating as an AR. For more information on joining the BGP AR network simply contact us.




What is an Appointed Representative (AR)?

If you have been thinking about working as insurance broker, you are almost certain to have come across the term Appointed Representative (AR). But what are ARs and to what extent becoming one may help your business as a broker?

The formal role and status of an Appointed Representative is clearly set out by the finance industry regulator, the Financial Conduct Authority (FCA). It describes a contractual relationship between an Appointed Representative (who may be an individual or a firm) and a “principal”. The principal is responsible for ensuring that any AR complies with the requirements rules and regulations of the FCA. If you do not work as an Appointed Representative, your insurance brokerage must be directly authorised by the FCA.


What are the advantages of becoming an AR?

One distinct advantage has already been mentioned and that is the protection you receive from a principal who is entirely responsible for ensuring your compliance with all the FCA’s rules. Since compliance with FCA rules is essential to your ability to do business, the principal’s role is fundamental. But there are many further advantages to becoming an AR:

FCA authorisation

Your principal is required to take full responsibility for your authorisation by the FCA and makes that application on your behalf;

Since the principal is already well-established in the insurance industry, FCA authorisation is typically secured much more quickly than an application made for direct authorisation;

The cost of making an application for authorisation (a fee of £1,500, £5,000 or £25,000, depending on the complexity of your proposed business) is borne by the principal;

Systems

For any business these days, access to information systems capable of matching products to customers’ requirements is essential – but none more so in your role as an insurance broker where the diversity of products and the speed with which transactions need to be conducted are paramount;

An AR enjoys direct access to the principal’s IT systems and data bases, ensuring that you maximise your market potential by delivering a high quality product tailored to your customers’ precise needs and requirements;

Support

Just as the name suggests, a principal is typically an established, much larger and well-resourced company capable of providing any kind of support your insurance business may require;

You have access to specialist advice and expertise which, again, may make the difference between success and failure to your own business;

An example of the relationship between principal and AR is described by on our website here at BGP;

Products

Thanks to the operating scope and scale of the principal’s business, an AR has access to a much greater range of insurance products than the one or two typically available to a directly authorised insurance broker;

Ownership

if you are unfamiliar with the role of an AR, you might be worried that this somehow involves the loss of your own brokerage’s identity and ownership;

This is very rarely the case, however, and the AR retains complete ownership of the business and the client base upon which it operates.

Given a choice between operating as a directly authorised insurance broker and becoming an Appointed Representative of your chosen principal, you might consider there to be significant advantages to operating as an AR. For more information on joining the BGP AR network simply contact us on 03330 146 156


© Bennett Gould & Partners Ltd 2018


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© Bennett Gould & Partners Ltd 2018


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Bennett Gould & Partners Ltd., Registered in England No 1058351 at 18D Ley Court, Barnett Way, Barnwood, Gloucester GL4 3RT, are authorised and regulated by Financial Conduct Authority (FCA). Our permitted business is advising on, arranging, dealing in, administering non-investment insurance contracts and Credit Broking. Our FCA register number is 306850 and you can check this on the FCA’s register by visiting the FCA’s website www.fsa.gov.uk/register/home.do or by contacting the FCA on 0800 111 6768.