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Established Brokers

In this section:

The Proposition

TEn believes that directly regulated (DR) Brokers, up to or over £2.5m GWP, would be better off in many respects as an AR of TEn. That’s compared to remaining as they are and whether or not they are presently members of a DR network. This is rather a brazen statement, but at least we have the experience and the arguments to back it up. Or we think we do! Nevertheless, simply because we believe it and we think we can make a good case, it does not necessarily mean that every Broker/Practice of that…

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The Rationale

In Australia, where the distinction between AR and DR (Licenced) brokers has existed rather longer than it has in the UK, there are not only many more AR networks, but it is generally accepted that brokers below a certain size are now - more often than not - ARs. So why not here? As far as General Insurance is concerned, AR status is a relatively new thing, since 2005. Also, it is unfortunate that people who sell leather sofas have been allowed to sell insurance as well, under the umbrella of being…

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The Economics

The financial case for becoming or remaining an AR is generally fairly clear. The right-hand column of this page spells out the additional costs of being directly regulated compared to membership of the TEn network and utilising the full range of the services we have to offer. Every cost item listed is a genuine potential monetary saving for the member Broker apart from the last two, which are also real enough, but it’s harder to ascribe a tangible amount to them. And anyway, some people actually…

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